One of the major service export contributors of the country—Indian IT companies—did not receive much from the Union Budget 2021 by Minister of Finance Nirmala Sitharaman. However, some budgetary advertising will improve the technology industry in the region.
Rs 1,500 crore scheme for increasing e-payments
In order to encourage digital transactions within the country, a development that the industry believes would lead e-payments in smaller cities to be embraced and innovate by Fintech companies, the government has announced a Rs 1.500 crore scheme. FM delivered its Budget speech saying that the amount of digital purchases in recent years has grown gradually. “To give a further boost to digital transactions, I earmark Rs 1,500 crore for a proposed scheme that will provide financial incentive to promote a digital mode of payment,” she quoted.
Digital survey to lift IT service companies
The Minister of Finance has announced the first-ever digital census of 2021 in this region. The plan would improve the efficiency of the technology backend software firms.
Refurbishment of corporate affairs portals
The FM has updated the MCA 21 3.0 portal for the Department of Corporate Affairs. In addition to the e-care center, e-control, compliance monitoring, and e-judication, the government will be using data mining, AI, and ML to initiate the MCA 213.0. Infosys manages the project which is scheduled to be renewed in July 2021. In 2013, Infosys was provided to handle the project, previously by TCS. Total Rs 357.81 crore projects were used in the second phase of MCA 21. The next iteration of the project could draw more competition from international and Indian IT companies with the inclusion of new digital capacities.
Digital census to raise firms’ hardware
The first digital census would give hardware companies a boost in market. Since the sales of notebooks, computers, smartphones and printers are presumably on the rise.
Extended tax vacation for start-ups
Minister of Finance Sitharaman extended the tax holiday for start-ups by another year to support the start-ups. In line with Union Budget 2021-22, by another one-year duration before 31 March 2022 start-ups will be given a capital gains exemption. Start-ups have a further tax holiday year to say.
To promote one-person integration
The government has suggested incentives for one-man businesses, meaning entrepreneurs and innovators would benefit from the change. Sitharaman said in her speech on the budget: “Such firms can grow without restriction on the capital and revenues that have been paid, allowing conversion to any other type of company at any time, cutting an Indian citizen’s residence limit to establish an OPC from 182 to 120 days, while also allowing the non-resident Indians to join OPCs in India.”
Government to include Rs 3000 crore for the reorganization of the National Apprenticeship Training Scheme (NATS)
In order to realign the current National Apprenticeship Training Scheme (NATS), Government will supply Rs 3000 crore to allow post-learning apprentices, graduates’ training and graduate engineering graduates. This will help Indian technology companies increase their talent efficiency.
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