Union Budget 2016: Here's what technology sector seeks from Arun Jaitley
Considering the growing e-commerce industries and increasing numbers of entrepreneurs in India, the Union Budget 2016 is expected to announce more fund and ways to invite investments to upgrade technology infrastructure.
New Delhi, Feb 21: Considering the growing e-commerce industries and increasing numbers of entrepreneurs in India, the Union Budget 2016 is expected to announce more fund and ways to invite investments to upgrade technology infrastructure. Prime Minister Narendra Modi led government has announced ambitious projects like 'Make In India', 'Start-up India' and 'Digital India' and Union Finance Minister Arun Jaitley won't ignore them while presenting Union Budget 2016 in the Parliament on February 29.
Finance Minister Arun Jaitley is expected to announce several moves towards an overall ease of doing business as part of 'Start-up India' campaign. He would introduce tax friendly schemes, a tax regime to encourage setting up of more start-ups in the country. If the government announces exemptions for small entrepreneurs and businessmen from capital gains tax, it will boost the investment economy tremendously and invite the capital to fuel the economic growth. (ALSO READ: Here's what Arun Jailey should do to boost power sector)
India's GDP growth has surpassed growth rate of China and to sustain the economic progress the Budget must allocate all possible amount in the necessary sector. The government's focus on 'Make In India' plan can surely upgrade the technology sector. If the government announces special tax holidays for warehouse sector in rural areas, the move would become major step in inviting industries.
India has the potential to develop and manufacture electronics hardware for the global markets but inverted duty structure has been a hurdle in this regard. The government in Budget 2015 Budget 2015 extended Special Additional Duty exemption on import of certain products of IT sector. However, Appliance and Consumer Electronics (ACE) manufacturers still face the same issue.The Budget should provide a conducive environment for their manufacture to encourage setting up more component manufacturing units in the country.
With IT industry growing and bringing so many innovations to the fore, there is an immense need for safety and security of online monetary transactions. In order to ensure long-term benefits of investors, government should set aside about 10 pr cent of IT budgets for cyber security. Still people have fear that online transactions are unsafe. When this mindset will break, more customers will be drawn and industry will grow further. Concepts like Digital India and Smart Cities require the creation of technological infrastructure that will need more budgetary support.
For breaking news and live news updates, like us on Facebook or follow us on Twitter and Instagram. Read more on Latest India News on India.com.