New Hopes and Benefits with ‘The New Budget’

India is the third largest startup ecosystem globally, with a population of 1.4 billion, and is bound to become the next superpower in days to come. The Indian Union Budget for the fiscal year 2023, presented on February 1, 2023, invites us all to create a thriving and prosperous India by 2047.

 According to the NASSCOM report, the Indian technology sector has witnessed robust growth and grown to 227US$ billion with a 15% growth rate per year. With increased spending on digital skill development and upskilling, the IT sector will boom at various levels, including schools and universities. 

As per the budget released this year, India will continue to dominate the global technology services market, especially in areas like artificial intelligence, data science, blockchain, cybersecurity, robotics, cloud, etc. We will also witness a steep growth of Saas companies and many emerging tech companies, including AI, robotics, space tech, fintech, etc. 

A new initiative to transform the 'sustainable cities of tomorrow' is taken up to develop the tier 2 and 3 cities and make them the next talent hub by improving their quality of life and providing seamless infrastructure, mobility, and urban sustainability. This aligns with Techment's vision of creating an IT ecosystem in small towns to harness local talent. The digital infrastructure development will further help us to access the increased talent pool scattered across the industry.

The Indian economy has significantly increased from the 10th to the 5th largest in the world since 2014. We have emerged as a well-governed and innovative nation with a conducive environment for business, as reflected in several global indices. We have made good progress in achieving many sustainable development goals.

Here are a few critical inputs from the new budget that will support IT and business development in India, including benefits to the workforce, especially women. 

Key Takeaways for the IT Sector

The Union Budget proposed several measures to boost the IT sector in India. This year's budget proposals rested on the following broad pillars:

The Budget included some of the following necessary measures to support the IT sector:

1. Introduction of a new policy for data security and privacy aimed at boosting the country's digital economy. AI and Machine Learning (AI ML) are the future of every single industry. However, we need continuous access to secured data to run algorithms and validate the outcomes. Consequently, India will soon have a data governance policy framework, defining the dos and don'ts of data consumption for research and business needs.
2. Three Centres of Excellence (CoE) will be established for AI.
3. The new and emerging fields are targeted to upskill and create talent for industry 4.0, likely to boost employability. The Government will extend financial support and provide advanced skill training, knowledge of modern digital techniques and efficient green technologies, brand promotion, digital payments, and social security. 
4. The BharatNet project's expansion aims to connect all the country's Gram Panchayats (Village councils) with high-speed broadband.

Overall, the measures proposed in the budget are expected to boost the growth of the IT sector in India and contribute to the country's digital transformation. Further, to promote the Indian economy, the Government also announced startup tax benefits. The norms have been eased by extending the benefits of carrying forward losses to 10 years. Eligible startups established before March 31, 2023, have been provided a tax incentive for three consecutive years out of ten years from incorporation.

Tax Rebates and Benefits to Salaried Employees, including Women

The Union Budget provided several measures to support salaried employees, especially women, including:

• Increase in tax rebate for individual taxpayers with an annual income of up to INR 7 lakhs (approximately $8459), which will benefit many salaried employees.
• Empowering rural women and promoting gender equality through Mahila Shakti Kendra Scheme.
• Introduction of a scheme for promoting employment for women in the formal sector, aimed at providing job opportunities and financial support to women entering the workforce.

In line with the Government's initiatives, Techment is increasingly supporting the workforce through flexible work arrangements, equal pay measures, and education and training programs that help women acquire the skills needed for jobs. 

The measures proposed in the budget are expected to improve the financial stability of salaried employees, especially women, and provide them with greater job security and financial support. Our workforce at Techment, especially women, will benefit from these extended benefits. 

On multiple other fronts, the budget proposes several programs for green fuel, farming, mobility, buildings, and equipment. These green growth efforts help reduce the economy's carbon intensity and provide large-scale green job opportunities.

Overall, the budget aims to promote the country's development and growth, addressing the needs of various sections of society, including the commoner, industrial sector, infrastructure, agriculture, and rural development. With 65% of the country's population under 35 years of age, numerous productive jobs are being created. 

Techment, a youth-driven technology innovation startup, is increasingly foraying into data and cloud management technology to develop effective solutions to help businesses function smoothly, even in situations like the pandemic. We are proud to say that youngsters form 50% of our workforce! 

Overall, the measures proposed in the budget are expected to boost the economy and will push the growth of the IT sector in India to contribute to digital transformation.