Union Budget 2022: Reactions from IT Leaders

Union Budget 2022: Reactions from IT Leaders

The finance minister Ms. Nirmala Sitharaman has finally presented the Union Budget in parliament for FY 2022-23. The budget is expected to lay the foundation of modern and digitally empowered India. FM emphasized improving the digital infrastructure as technology is rapidly expanding its footprints. The government touched almost every sector be it startup, education, health, MSME, telecom, or manufacturing. The IT industry plays a crucial role in the economy hence the Finance Minister announced several measures to boost domestic manufacturing and uplift the IT sector. The IT leaders have shared their views on the budget announcement. Read the excerpts below:

“The Call Out On Semiconductors As A Sunrise Sector And 5G Roadmap Will Provide Impetus To The Segment”

“The 2022-23 budget outlines a balanced, value accretive and pro-growth outlook. It’s an optimal mix of intent and pragmatism. The renewed focus on infrastructure, health, education, entrepreneurship and digitization of the economy, resonates with the Economic Survey’s projected GDP growth rate of 8% for the next fiscal. The call out on semiconductors as a sunrise sector and 5G roadmap post the success of PLI schemes launched last year will provide impetus to the segment. Furthermore, data centric growth and democratization of digital banking augur well for our industry and will further bolster India’s aspirations, as the fastest developing digital economy in the world.” - Anand Ramamoorthy, Managing Director, Micron Technology (India)

“Union Budget 2022-23 Is A Promising Budget And A Step Forward Towards Aatmanirbhar Bharat” 

 “The Union Budget announced today showcased the government's initiative towards Digital Transformation. From announcing a Digital University, for online learning to high-quality e-content across languages will enable the youth to skill, upskill and reskill themselves. These programs under digital learning and the connectivity expansion will further strengthen the availability and accessibility of internet in rural areas. With Govt infrastructure spending push, we are likely to see more employment and growth opportunities and enhanced private sector investment in manufacturing. We are confident that the exemption of duty on parts of select electronic items will further boost the domestic manufacturing of electronics goods under the PLI scheme. Overall, the Union Budget 2022-23 is a promising budget and a step forward towards ‘Aatmanirbhar Bharat’.” - Alok Dubey, Chief Financial Officer, Acer India

“The Union Budget 2022 Is Built On The Foundation Of Introducing New Technologies Across Sectors” 

“The Union Budget 2022 presented by the Government of India is built on the foundation of introducing new technologies across sectors. From education to finance, logistics, and healthcare, the bedrock of change will be driven by tech.  The Government has further proposed the introduction of the digital rupee. While this will definitely enhance efficiency and promote growth, increased digital penetration also brings with it additional cyber risks that one should be vary of. As a step towards mitigating cyberattacks, the Government plans to set up broadband in villages as well as the Digital DESH e-portal. This will help equip youth with the right skills, including cybersecurity skill sets, needed to operate safely in today’s tech-driven world.” - Sunil Sharma, Managing Director – Sales, Sophos India & SAARC

“Calibration Of Custom Duty Rates Will Help Local Manufacturing Of Electronic Products Including Computers”

“A welcome budget with investment-led growth and push on capital expenditure to fuel economic revival, digitization and employment generation. Calibration of custom duty rates will help local manufacturing of electronic products including computers. With the increased focus on ‘Skilling and providing employment in India’ in this budget, we are confident that local manufacturing will be encouraged and will further bolster the Indian smartphone market, as well as IT services and IT infrastructure markets. We also believe the focus on 5G technology will help in higher peak data speeds, more reliability, increased network capacity and a more uniform user experience. As a global technology leader, we believe these initiatives by the government and the paradigm shift to hybrid models for learning and working will lead to an accelerated adoption of technology in both consumer and enterprise segments.” - Shailendra Katyal, Managing Director, Lenovo PC and smart devices business Group (PCSD) India & Site Leader, Lenovo India.

“Taking Insights From The New Budget, We Are Looking Forward To The Next Phase Of Tech-Savvy India” 

"The budget rolled out this year is a significant step towards the right direction. It outlays a strong focus on almost all sectors, especially focusing on digitization and tech-driven areas. As India is well poised to play an important role in  Cybersecurity and Data Protection, the push towards complementing macro-growth with micro-all-inclusive welfare, digital economy and fintech, tech-enabled development, energy transition and climate action would play a crucial role. The Government's proposal to launch a Digital ecosystem for skilling and livelihood and Desh stack e-portal will encourage growth in the sector, apart from promoting the digital infra. Taking insights from the new budget, we are looking forward to the next phase of Tech-Savvy India, which will be a big growth driver for Cybersecurity businesses and customers alike." - James Forbes-May, VP Sales APAC, Barracuda Networks 

“Electronics Have Been Once Again Identified As A Key Engine To Propel The Manufacturing Ecosystem” 

“We welcome the Honourable Finance Minister Smt. Nirmala Sitharaman’s progressive and forward-looking Union Budget as well as the PM GatiShakti Master Plan for a post-pandemic economic revival and growth. Electronics have been once again identified as a key engine to propel the manufacturing ecosystem. Pragmatic initiatives undertaken by the government over the years, have played a crucial role in shaping India as a growing manufacturing hub that promotes investment, enhances skill development, encourages innovation, and protects intellectual property. Customs’ reforms have played a crucial role in furthering domestic capacity creation. We are excited that the government has addressed the inverted duty structure in locally manufacturing hearables and smartwatches, with progressive PLI and Phase Manufacturing Programme (PMP). This could further act as an enabler in providing a level playing field for Indian manufacturers to increase their share of locally procured components for manufacturing and homegrown Indian brands like boAt hope to continue to benefit from such support from the Government.’’ - Sameer Mehta, Co-Founder and Chief Product Officer, Imagine Marketing Limited (boAt)

“The Budget Has The Thrust On Infrastructure Development, Digitization, Skilling, And Ease Of Doing Business”

“FM has presented a splendid Growth oriented budget. The budget has the thrust on infrastructure development, digitization, skilling, and ease of doing business. It is a forward-looking budget and will have an impact in the years to come. Infra spending will generate millions of jobs and propel the growth in the economy. The government has embraced technology and digitization in all sectors of the economy viz. defense, agriculture, health, education.  It is very interesting to note the way Government is adapting the digitization - by increasing faceless engagement with government and also between the private sector through government platforms, creation of unified logistics platform, Delivery of digital and Hi-tech services to farmers, use of Kisan drones to aid farmers, establishing Digital university,  e labs, e skilling are a very modern and contemporary governance process.  The tax was always applicable to gains on virtual assets. The current budget gives more clarity on the same. It is a welcoming measure.” 

“The introduction of digital currency is one of the great steps in the right direction. It shows that we as a country are ready to embrace and adapt to the virtual currency dynamics and grow the economy in a modern way. Digital money, Digital banking, and digital platform in dealing with the government are the key drivers of the government.  Overall, a very consistent and simple budget with 100% directional alignment to last year's budget focuses on building trust. This shows the long-term focus of the government versus too many changes whilst keeping the option of announcing reforms throughout the year.” - Prabhakar Iyer, Executive Director and Chief Financial Officer, Ingram Micro India. 

“We Are Pleased That The Budget Seeks To Leverage Technology For Enabling Next Phase Of Development” 

“We are pleased that the budget for 2022 seeks to leverage technology for enabling the next phase of sustainable socio-economic development of the nation with the use of drones for land surveys and crop assessments, the introduction of digital currency, infrastructure status to data centers, e-content delivery, and e-passports. Apart from this, the announcement of the DESL stack portal to upskill Indian youth as per industry needs will help to fill the talent and skill gap. From a telecom sector perspective, FM’s announcement around the 5G spectrum auction, 100 percent fiberisation with PPP model will provide the required impetus to build upon ubiquitous and reliable internet connectivity. Thereby, bridging the digital divide for a conducive and inclusive development of the nation in keeping with the ‘Digital India’ initiative. Further, design-led initiatives for 5G under the PLI scheme and 5% of USOF for R&D purposes will strengthen the ‘Make in India’ initiative, and contribute to making India a global manufacturing hub.” - Nitin Bansal, MD, India & Head-Networks - Southeast Asia, Oceania, and India, Ericsson

“This Is A Very Progressive Budget Focused On Giving A Boost To The Infrastructural Development” 

“This is a very progressive budget focused on giving a boost to the infrastructural development and attracting global investments in form of FDIs. The government has been consistent in giving emphasis on the overall growth and development of industries rather offering sector-specific incentives. The budget will create employment opportunities across the industry verticals and accelerate the GDP growth. We hail the government for its strategic decisions and futuristic approach for the self-reliant India” - Rajesh Goenka, Director, Sales & Marketing, RP tech India

“I Was Expecting More For The Consumer Electronics Industry” 

“While I’m very happy about the big announcements on 5G technology, which I’m sure will go a long way to improve Internet connectivity which will, in turn, help the Smart TV industry grow, I was expecting more for the consumer electronics industry. We were expecting GST reduction on televisions from 28% to 18% on 81cm and above or PLI schemes. We also welcome the move to provide 80 lakhs affordable homes this year, which will definitely expand the consumer electronics market, but to give the current market sentiments a fillip and improve consumer confidence, more needs to be done for healthcare, education, manufacturing.”- Avneet Singh Marwah, CEO, Super Plastronics Pvt Ltd, Kodak brand licensee

“Bringing In Digital Currency Using Blockchain Is Huge Step” 

"This clearly is a futuristic and technology driven budget presented by the honorable Finance Minister. Almost every key project announced by her talks about leveraging information technology to the fullest in bringing out the best outcome. Giving data centers infrastructure status is a welcome move. It will help in getting easy financing for the datacenter players and attract more investments. Other areas like 5G spectrum auction in 2022, PLI in 5G,optic fiber network in all villages by 2025, e-passports and emphasis on digital content development and delivery, and digitalization of education are some great moves announced in this budget. Bringing in Digital currency using Blockchain is another huge step," - Ashok Kumar, MD, RAH Infotech

“I Welcome Improving Connectivity By Focusing On 5G And Fiber”

“While there is some good news for the startup ecosystem, it has some hits and misses. I welcome improving connectivity by focusing on 5G and fiber, reskilling from a digital perspective, SEZ-related changes, etc. However, we have missed the bus for investments in driving skill growth, which is one of the most significant pain points for the IT Industry. An opportunity to transform India into an innovation hub, the AI hub, etc., has been missing. The boundaries between business and Technology no longer exist, and technology-led growth is the need of the hour. Unfortunately, the current focus on technology-led growth is choppy. We are still thinking about Technology from an enabling perspective but fail to realize it intertwines with our economy. This is a traditional mindset that is possibly preventing us from reimagining. I am a bit worried about the overall competitiveness of India over a period if we fail to visualize the future and change the present from an IT and technology perspective.”- DD Mishra, Senior Director Analyst, Gartner

“Budget 2022 Promises To Provide Much-Needed Impetus To Sustain India’s Economic And Digital Growth” 

“The budget truly echoes India’s vision towards inclusive development and building a truly ‘Atmanirbhar Bharat’ by providing a blueprint for the economy over ‘Amrit Kal’ from India at 75 to India at 100. FM’s key announcements on blockchain and setting up e-passports with futuristic technologies are a step in the right direction to help India emerge as a global technology leader. The focus on innovation and R&D (Research and Development) with an emphasis on strengthening talent capacity through STEM (Science, Technology, Engineering, Mathematics) universities and skilling courses in IIT’s will enable India to become a global hub for skilled talent. Overall, Budget 2022 promises to provide the much-needed impetus to sustain India’s economic and digital growth.” - CP Gurnani, MD & CEO, Tech Mahindra

“The Incentives Towards Creating Digital Infrastructure Spell Out The Intent On Developing The Country’s Human Capital” 

“I am excited to see the government’s focus on technology sector, as a whole. The incentives towards creating digital infrastructure, education, and skilling, spell out the intent on developing the country’s human capital. The emphasis of digitised skilling will help make our country's youth future-ready. Additionally, the announcement on RBI introducing digital currency and the government providing infrastructure status to data centers, will help create a framework for emerging technologies making the digital India Inc better and stronger.” - Puneet Gupta, Managing Director & Vice President, NetApp India

"Extending ECLGS With An Increase In Allocation From 50 Thousand To 5 Lakh Crore Is A Welcome Step” 

"Extending ECLGS with an increase in allocation from 50 thousand to 5 lakh crore is a welcome step by the Indian Government to empower the hardest Covid-hit MSMEs to cope with the challenges arising out of the Pandemic Situation" - Rajesh Gupta, CTO & Co-founder, BUSY Accounting Software 

“The Union Budget Has Ushered In Positive Measures For The Electronics Sector” 

“The Union Budget has ushered in positive measures for the electronics sector which will give a boost to the sector, especially in the context of Make in India. The #AatmanirbharBharatkabudget with a huge boost to "Make in India" shall generate 6 million jobs and further create competent and skilled manpower that shall compete globally in terms of the quality of goods manufactured. “The electronics manufacturing industry is expected to see 30 percent growth in the coming fiscal and to be worth nearly ₹7 lakh crore. It is heartening to see that the Government of India has acknowledged the exponential potential of this sector.  There has been an increase in prices of electronics, smartphones especially, owing to the ongoing chip shortage and other COVID-19 induced factors. With duty concessions and domestic manufacturing boost, prices of electronics are expected to decrease which will further boost the demand in the coming days.” - Ameen Khwaja, Founder & CEO, pTron 

“More Money In The Hands Of The Tax-Payers Could Have Helped Drive Consumption” 

“Union Budget 2022 continues to pave the way for a sustainable economic growth in Amrit Kaal, backed by consistent structured approach. It underscores the Govt commitment towards Digital India and investment in Public Private Partnership through game changing initiatives like  Gati Shakti programme, investment in the sunrise sectors and MSMEs, introducing policies for clean energy, among others. Infact, the seven engines defined under Gati Shakti initiative is bound to have a multiplier effect as it will help aid in reduction of logistics costs, enable supply-chain efficiencies, create employment generation all this, while using technology. 

It was encouraging to see the focus on clean energy. In line with Panasonic’s business strategy, we are looking forward to details on the Battery Swapping Policy and participate in India’s Electric Vehicle (EV) story. Also, the commitment on building a circular economy is the need of the hour as the world looks at sustainable solutions in a phased manner. In my experience with the current regime, policy conversations are not limited to Budget day but take place through the year. So we are hoping for discussions on how exports can be further incentivized and policy can be enhanced for design led local manufacturing. From an electronics sector standpoint, we expected reforms in the Union Budget FY 2022 - 23 that would accelerate growth channelized by consumer demand. For instance, rationalizing the GST from 28% to 18% on ACs and large screen size (>105cm) TVs will improve affordability and penetration as these are no longer considered luxury items. We will look forward to hearing from the GST Committee on this. From the individual’s perspective, no changes in tax structure can also be a relief as it defines stability in current times. Though more money in the hands of the tax-payers could have helped drive consumption over short term.” - Manish Sharma, CEO, Panasonic India

“We Are Glad That The Government Is Working Towards Boosting The Digital Infrastructure” 

“The budget paves way for a digital savvy India, impacting betterment and quality of life and ease of doing business. We are glad that the Government of India, is cognizant and working towards boosting the digital infrastructure and economy. The emphasis on e-infrastructure in education is laudable. Fostering creativity with virtual labs and skilling e-labs for simulated learning environment will uplift education standards.  Expansion of PM’s one class, one TV channel program - eVIDYA from 12 to 200 TV channels, Digital University and the initiative of laying optical fiber by 2025 under Bharat Net will uplift broadband connectivity in rural areas, enabling all states to provide supplementary education in regional languages for K-12 classes. This will further increase the demand for advanced hybrid displays which in turn will give a boost to the virtual classroom and Blended & Hybrid Learning. Further, reduced alternate minimum tax rates, surcharges, concessional tax, and new tax schemes for newly incorporated manufacturing entities will uplift the ‘Gati’ of domestic manufacturing and fasten up economic growth. We look forward to a digital-first India in every front.” - Rajeev Singh, MD, BenQ India 

“The Budget Is Also Forward Looking As Government Has Taken A Sensible Approach Towards Digital Currencies”

“India has seen accelerated technology adoption in the last couple of years and the budget seems to propel this adoption even further. Open platform for the national digital health ecosystem, introduction of core banking in post offices, digital ecosystem for skilling and livelihood and confirmation of 5G spectrum auction in 2022 will push technology adoption across government, private and consumer segments. Most of these initiatives will result in large scale digitalization projects and the expertise of Indian IT industry can be well leveraged to execute such initiatives. The budget is also forward looking as government has taken a sensible approach towards digital currencies as no government can afford to ignore the proliferation of technologies like blockchain.” - Sharath Srinivasamurthy, Research Director, Enterprise Solutions & ICT Practice, IDC India

“We Were Expecting A Cut In The GST Slab For TV Sizes Above 32’” 

“The GatiShakti Masterplan is a great step by the government to improve the logistics infra of the country which was much needed and we hope it can be accomplished at the earliest. The overall budget does not have a direct impact on the TV Industry. We were expecting a cut in the GST slab for TV sizes above 32”. There should have been some relief in the Income Tax Slab but the same has not been touched which is another disappointment. The Digital University Initiative is another great initiative for education taken by the government. The overall budget seems to be positive to strengthen the Indian Economy” - Arjun Bajaaj, Director, Videotex International Group

“We Welcome The Finance Minister's Increased Focus On The Consumer Electronics Industry” 

“We welcome the Finance Minister's increased focus on the consumer electronics industry and formation technology, which will definitely benefit all worldwide companies, including ours. The 2022 Union Budget allocated 1.97 lakh crore ($26 billion) for PLI projects, notably electronic components, which are among the 13 vital sectors that would undoubtedly help our economy expand. Furthermore, reduced customs taxes will encourage electronics manufacture, which will benefit the electronics industry.” - Vijay Kumar Mikkilineni, Head of Marketing, TCL India 

“We Are Also Thrilled About Government’s Announcement Around Data Centers And Digital Infrastructure Boost” 

“We appreciate the government’s continuous focus on the technology sector with the Budget 2022-23. With the ongoing pandemic, the National Digital Health Ecosystem will act as boon to the healthcare workers as it will entail digital registries of health providers, health facilities, unique health identity and universal access to health facilities making their processes digitised and hence, seamless and simplified. At Avaya, we have been contributing to the industry in form of ‘remote healthcare’ for patient care. With social distancing becoming the new norm, frontline responders and healthcare institutions have swiftly adopted collaborative tools and cloud-based solutions to ensure continuity in providing quality healthcare. We look forward to assisting the government with this initiative.” 

“We also welcome the announcements on 5G rollout and PLI scheme as it will boost R&D, generate job opportunities, and enable enhanced connectivity across the country. In the last 2 years, Avaya has helped over 2 million people work remotely without disruptions and ensure business continuity and resilience for various organizations across verticals. Therefore, we appreciate the government moving towards a direction which will enhance hybrid work which indeed is the future of workplace.” 

The Government has also allocated INR 50,000 crore equity infusion in MSMEs which will further strengthen their digital transformation journey. With Avaya being one of the leading global companies in the communications space, we look forward to helping MSMEs create unique customer experiences and scale up with the help of our robust and collaborative solutions. We are also thrilled about government’s announcement around data centers and digital infrastructure boost, and look forward to collectively contribute to the goal of a 5 trillion economy.” - Vishal Agrawal, MD, India and SAARC, Avaya

The Emphasis On Growth, Digitization Outlines Government’s Commitment To Cohesive Development” 

“The emphasis on growth, digitization and being future ready outlines the government’s commitment to cohesive development and ‘Make in India’. Focus on Gati Shakti masterplan, youth, women, job creation, technology and infrastructure development among others will drive India’s Amrit Kal, journey from 75 to 100 years as a democracy. India has the potential to be a world-class infrastructure centre, and the Budget has provided enough impetus to propel the same. In addition, we expect the digital ecosystem for skilling will boost human capital and empower industries significantly.” - Rajiv Bhalla, MD, Barco India

“The 2022-23 Budget Overall Finely Balanced Fiscal Retreat with Supporting Economic Recovery and Skilling"

“The 2022-23 budget overall finely balanced fiscal retreat with supporting economic recovery and skilling. The proposed reforms especially those focused towards MSMEs and start-ups, such as the expansion of the ECLGS scheme for another year, are a welcome move for both credit facilitation and boosting entrepreneurial opportunities in the country. We believe that the financial support of five lakh crores will help to encourage young entrepreneurs to come forth and explore new avenues. In addition, the decision to interlink portals like UDYAM, e-SHRAM, National Career Service (NCS), and ASEEM will help in formalizing the sector and be positioned to create additional job opportunities. The launch of Digital DESH e-portal for skilling, reskilling, and upskilling of the existing talent will also help to pave the way for building a dynamic workforce for future growth. As the country looks forward to these encouraging initiatives and more to boost small businesses, GoDaddy will continue to support Indian small businesses and entrepreneurs helping their ventures successfully come and grow online.” – Nikhil Arora, Vice President and Managing Director, GoDaddy India”

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