IT Industry Honchos welcome Union Budget 2021-22

Finance Minister Nirmala Sitharaman presented the Union Budget 2021-22 and said that the Budget proposals for this financial year rest on six pillars — health and well-being, physical and financial capital and infrastructure, inclusive development for aspirational India, reinvigorating human capital, innovation and R&D, and 'Minimum Government, Maximum Governance'.

Union Budget 2021-22 invoked a positive reaction from the IT industry and praised the PM Modi led government for Atmanirbhar Bharat. Here’s we have some reactions from the IT industry.

Vivek Sharma, MD - India, Lenovo Data Center Group

“This is a pro-growth, pro-technology budget with a vision to disinvest where required and re-energize infrastructure, healthcare, banking, and agriculture sectors through numerous employment and capital generating reforms. There is a strong focus on Digital India be it through setting a fintech hub at GIFT city, enhancing digital payments and use of AI, ML etc in governance, or making tax appellates faceless and tech-enabled – all provide a solid foundation for a forward-looking data-economy.”

Rajesh Goenka, Director, Sales & Marketing, RP tech India

“Overall it is a very pleasant budget without any surprises which is good because in the current scenario consistency and continuity is more important rather than having mere aspirations. This is overall a balanced budget and only enhances the momentum set by our prime minister and finance minister in the last two years. In terms of IT hardware industry, there is no major change, however, with the government investment, the overall market demand is likely to grow up. IMF has also forecasted the industry growth 11 to 11.5 per cent, which is good for the industry. So overall we are optimistic about the budget”

Prashanth GJ, CEO, TechnoBind

Increased spend on Healthcare and Infra are welcome moves - as this will have a cascading effect on the economy in the medium term. Whether it is Highways or Railways the enhanced allocation is very encouraging. Also interesting is the 'Bad Bank' which will help address the stressed assets through an ARC model. This will help keep the Banking system insulated from the spike of bad loans that are expected now - thereby allowing them to do business as usual by giving the much-needed support of credit in the system. The MSME allocation has been doubled - this too will help SME businesses in general which is a big market for us in the country.

Support for furthering the idea of Digital India is also seen and it is very welcome - encouraging digital payments and the use of AI/ML in governance is exciting. Emphasis on Digital Payment is very good as this will go a long way in bringing in financial inclusion. Provisions in the GST and customs duty rationalization is something we look forward to.

Rajiv Bhalla, MD, Barco India

The Union Budget 2021-22 is a major step in the right direction. It outlays a strong focus on infrastructure, healthcare, capital spending, disinvestment, monetization, job creation and digitization. These measures are not only progressive and recovery-led if implemented correctly would ease the burden on the economy and lead India towards the projected v-shaped growth and development. The budget talks about structural reforms in banking, enhancing debt financing and credit limits for businesses and asset monetization. This will lead to an increase in government spending, which, in turn, will spur demand, therefore net positive for the industry. The several initiatives around job-creation, startups, reskilling, rural development and better quality of services to people are positive as a Nation cannot progress without care for the environment and inclusive all-round transformation.

It is a welcoming move that the government is emphasizing on the implementation of data analytics, artificial intelligence, machine learning for the Ministry of Corporate Affairs (MCA)' database. We also welcome the digitization process and the introduction of e-scrutiny, e-adjudication, e-consultation and compliance management in MCA 3.0.

Rajendra Chitale, CFO, Crayon Software Experts India

After the adversities of 2020, tax holiday for another year to startups is a commendable move for the government. Again, the tax audit bar raised to Rs 10 cr for those transacting 95 per cent digitally shows the government's commitment towards bringing in greater transparency. Apart from that the government's promise on removing GST anomalies and the amount of Rs 1,500 crore earmarked for a scheme to boost digital payments are other welcoming moves for a stronger digitized India.

Sunil Sharma, Managing Director, Sophos India & SAARC, said,  "The Government’s Union Budget 2021 is built on the foundation of new technologies such as Data Analytics, Artificial Intelligence (AI), and Machine Learning (ML) which will empower businesses with econsultation, escrutiny, and compliance management. This is surely going to enhance enterprise cybersecurity as AI has immense potential to bring in scalable and effective defenses against sophisticated attacks like ransomware. That said, this increased penetration of digital technologies brings with it additional cyber risks that one should vary. As per our recent survey, with 100% of Indian businesses being concerned about their current level of cloud security, there is a need for initiatives that promote the development of cybersecurity skillsets. Additionally, this reskilling process should also take care of the security of cloud environments which are the backbone of the accelerated digital transformation that India is witnessing due to the pandemic. While we welcome the Government's proposed steps in strengthening MSMEs that provide employment to millions of people, we need more impetus on building skilled cybersecurity professionals in the country. The Government’s allocation of Rs. 3,000 crore towards skill development that will help reskill India’s youth and boost the overall economy, is a step in the right direction.”

S Sriram, Chief Strategy Officer at iValue InfoSolutions     

Union Budget 2021-22 was positive given the challenge around higher fiscal deficit due to lower-income. It is great to see an emphasis on growth front keeping fiscal deficit priority low for the next 2-3 years. The key highlights of the budget include an additional allocation to health and wellbeing in a Covid ravaged year with Rs 35,000Cr allocation to Covid vaccination with 4 Indian vaccines shortly. It is also great to see 35% enhancement of Government capital expenditure at Rs 5.54 lac Cr to revive economy around Road, Rail and Metro infrastructure. It is encouraging to see focus around disinvestment with 2 PSU banks and 1 Insurance company being planned for the year with Rs 1.75 lac Cr target. FDI in insurance enhancement from 49% to 74% augers well for a country with very low penetration. The voluntary vehicle scrapping policy is set to help the auto sector and address the pollution challenges. While Rs 20,000Cr PSU bank recapitalisation looks on the lower side, reopening of IT assessment cases period reduction from 6 to 3 years should give comfort to taxpayers on documentation. Planned LIC IPO should set the mood right on disinvestment. The government could have put more money in the hands of people to sustain the recovery along with sops to Business on CapEx investments.

Gurpreet Singh, Managing Director, Arrow PC Network

"Regressive rules had certainly affected the ease of doing business for many organizations and start-ups. However, the government's announcement of establishing a separate administrative structure especially for ease of doing business will help many organizations benefit in the future. Revision of the definition of small companies by raising the capital base to Rs 2 Cr from the current limit of Rs 50 lakh will give a big boost to companies affecting their monetary status. Though not much of changes have been made in terms of income tax slabs, the move to make changes in tax evasion has instilled confidence in common man that they would not be facing tax harassment. Earmarking Rs 1,500Cr for promoting a digital mode of payment and changing the tax audit limit from Rs 5Cr to Rs 10Cr will benefit many and will allow transparency. Hiking of FDI from 49% to 74% is a good move. The announcement that the forthcoming census would be digital shows the government's initiative to practice what is being preached. On the other end, the emphasis on education, power and infrastructure sector will support the overall development of the nation."

Shibu Paul, Vice President, Array Networks

"The fiscal deficit for 2020-21 was estimated at 9.5% of GDP, the government's aim is to bring it down by 5% of the GDP by 2025-26 which is ambitious and certainly a welcoming initiative. The highlight in this budget is the announcement of the Asset Reconstruction Company and Asset Management Company to help banks tackle bad loans which have been a call by economists for many years. The significance given to the investments and initiatives in the infrastructure development with a few coming under the PPP model will boost the overall development which includes increased investment opportunity from various sectors.

The government's proposal to use data analytics, artificial intelligence, machine learning-driven for the Ministry of Corporate Affairs' database is a boost to the digitalization where the Version 3.0 of MCA-21 includes additional modules for e-scrutiny, e-adjudication, e-consultation and compliance management. Connecting more than 1,000 mandis into E-NAM is an excellent move. Setting up a separate administration structure for ease of doing business would help many organizations from various sectors. The faceless dispute resolution panel would help the citizens by keeping them safe from tax harassment. The importance is given to healthcare sector to fight Covid and any future healthcare issues, the stress made in green energy projects like keeping aside Rs 1,000Cr for solar energy and Rs 1,500Cr for renewable energy along with voluntary scrapping policy and the weightage given to education has made this Union Budget 2021-22 wholesome."