IT Sector Hails 2020 Budget Focus On Digitization, Data Parks and AI

Acknowledgement of quantum computing and future technologies is a key step to promote start-ups working in nascent fields.

22 November 2019, Baden-Wuerttemberg, Böblingen: An employee of the IT company Hewlett Packard Enterprise (HPE) is working at a server cabinet in the company's technology centre. Photo: Marijan Murat/dpa (Photo by Marijan Murat/picture alliance via Getty Images)

Commending Finance Minister Nirmala Seetharaman for presenting a pro-active Budget for ensuing fiscal 2020-21, the IT sector stakeholders on Saturday said focus on data and digital were the centre piece of the finance bill. "The Budget focus on IoT (Internet of Things), data parks and AI (Artificial Intelligence) will make India a strong contender among the top digital economies, globally," said White Rivers India co-founder Shrenik Gandhi. Noting that the Budget had moved beyond jargon war, Gandhi said embracing digital technology was a strong positive move, as newage technologies, keeping data and digital at the heart of it shall lead to big reforms. "The ambitious fibre-to-home proposal will get the next 100 million in the digital universe soon. It's a positive budget for digital by the government. Reduction in tax slabs and abolition of Dividend Distribution Tax (DDT) will lead to higher disposable income and more consumption," asserted Gandhi. DDT is the direct tax imposed on domestic companies on the dividend paid to their shareholders at 15 per cent on the gross amount of dividend as per Section 1150. AmyGB.ai founder and Chief Executive Gaurav Bali said by making things easier for start-ups, the government was sending a signal to entrepreneurs to stay invested in India. "The push on data and knowledge centres, digital platforms for IPR (Intellectual Property Rights) and support for early stage funding are key to creating a viable start-up eco-system capable of competing with other markets," said Bali in a statement here. Acknowledgement of quantum computing and future technologies is a key step to promote start-ups working in nascent fields. "Making policy for data centre parks for digital resources like fintech, AI, aggregator platforms, connecting 1-lakh villages via optical fiber internet is great news as it will deepen digital penetration into the country," said Groww co-founder and chief operating officer Harsh Jain in a statement. Zephyr Peacock managing partner Mukul Gulati said the abolition of the DDT would help foreign investors, while tax benefits for infra investments for sovereign funds would help increase investment activity. "The strategic divestment target of $13 billion will help the fiscal deficit. Deferment of tax payments for Esops (employment stock options) for start-up employees is a positive," Gulati said in a statement here. On the downside of the Budget, Gulati said the proposals did not have any big bang announcements to spur the economy. "The increase in import duties for footwear, furniture and medical devices in the Budget is disappointing and a tax burden on the common man," added Gulati.