The Union Budget 2019 has encouraged skill development across the country, especially within the tech industry. The Government has renewed focus on making India a $5 trillion economy by 2025, through investment in infrastructure, digital economy and Job creation.
Union Budget has revived its effort to attract technology industry for setting up manufacturing units in areas such as chipset making, electronic components and lithium batteries with a promise of direct and indirect tax incentives.
Finance Minister Nirmala Sitharaman put forward a proposal while presenting the Union Budget 2019-20. “Government will launch a scheme to invite global companies through transparent bidding to set up mega manufacturing plants in sunrise and advanced technology areas such as semiconductor fabrication,” she said.
Nirmala Sitharaman, Finance Minister also said the scheme will include solar photovoltaic cells, lithium batteries, solar electric charging infrastructure, computers servers, laptop, etc. The government will “provide them investment linked income tax exemptions under 35 AD of the Income Tax Act and other indirect tax benefits.”
For Information Technology, there has been a slowdown in growth which requires focus on boosting innovation in services. The government is also encouraging Tech startup to focus on innovation. To do this, the government will make a proposal in the next five-year to boost the Indian IT industry.
The Union Budget 2019 was announced and here the reaction from top-level executives from the industry.
Mr. Abhishek Kumar, Regional Director, South Asia, Oncam – “The Government has earmarked Rs. 50 lakh crore for the development of railway infrastructure. A sizeable part of it will be diverted towards avant-garde surveillance solutions for smart management across railway stations as well as various nodes in railways. The Union Government’s focus is also on rural infrastructure expansion and we believe that surveillance will be an integral element in this development. Another key takeaway for the surveillance industry is that the Government also has a positive view towards the Artificial Intelligence technology and will be promoting indigenous research and development around AI, Big Data, and Robotics. Further, it has taken a slew of measures aimed at the Indian startup ecosystem, who will be looking towards the AI technology and security for development of high-end products and ensuring seamless processes. We appreciate the Finance Minister and her team for meticulously balancing all dynamics to bring about favourable market results.”
Vikram Kumar, CEO – Letstrack. – “Union budget has created a supportive ecosystem for startups as they are planning to make a channel where startups will be promoted, they can discuss their problems and also the Venture Capital Investor will get a platform for investment. We are really encouraged that the digital track taken by the govt. is surely matching 3 trillion view. Also other measures announced such as ease of angel tax will make it easy for investors to invest in startups.”
Mr. Ali Rizvi, National Sales Manager, Garmin India said “The National Sports Education Board being set up under the Khelo India initiative will significantly impact the sports ecosystem. With the objective of building better sportspersons for the future, this proposal will help improve sporting facilities all across the country. We, at Garmin India, wholeheartedly welcome this budget, which has strengthen the sports ecosystem by encouraging mass participation and promotion of excellence.
The programme aiming to transform schools and universities into hubs of sporting excellence will help sporting talents of the country to pursue the dual pathway of education and competitive sports. This initiative will not just enhance the physical well-being of future sports enthusiasts but also pay attention to their mental health.”
Mr. Avneet Singh Marwah, Director and CEO of Super Plastronics Pvt. Ltd said “As expected, this was a historical budget by the government covering almost all sectors, from education, infrastructure to manufacturing. One of the highlights of this budget for the industry is – the corporate tax bracket, which is expanded to bring companies under its umbrella with a turnover of up to 400 crores. It will cover almost 98% of the companies in India. Ease of doing business and filing of tax returns will save a lot of time and costs for companies. Also, an e-assessment procedure which has been proposed will be a game changer for the tax assessment structure in India.
We were also expecting a reduction of custom duties on Open cells, as TV’s under FTA have generated revenue of more than 4500 crores, which in turn is impacting the growth of ‘Make in India’ initiative. Secondly, an expectant cut in the GST rate for televisions of 32 inches and above was not announced. The government has also mentioned strict policies and legal action are to be taken against unorganized trade in India, which is now 15% of the market share and a revenue loss of $1 billion. This is also going to help in boosting our industry immensely.”
Mr. Arjun Bajaj – CEO and Founder – Daiwa “Government should not consider TV as a luxury good. It is not luxury but a need in today’s world. We hope the government will reduce the GST for bigger sizer to 18% from 28%. Secondly, government should make the open cell duty to zero which is 5% today. Opencell is not made locally in india and is imported. The 5% duty on a product which is not made locally is too heavy and this part accounts for 70% of the product value.”