Budget 2014: Modi Sarkar has big technology boost plans, but not many details

Finance minister Arun Jaitley presented his maiden Union Budget 2014-15 in the Lok Sabha today amid high expectations from India Inc. As technology becomes more and more important, it’s clear that technology will be increasingly used in government.

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Firstbiz highlights a list of technology-oriented announcements that range from technology spends to duty cuts that will help technology vendors:

-- Rs 100 crore set aside for development of Technology Development Fund.

-- All government departments and ministries will be integrated through E-platform by 31 December this year. What this entails is not exactly clear. Will this just mean that all government departments and ministries will have official e-mail, considering many now use Webmail services like Gmail? Or will it mean paperless functioning, etc?

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-- To bridge the digital divide, a pan India programme -`Digital India’, that will provide broadband connectivity and other IT facilities at village level, is proposed to be launched. The government hopes this would ensure Broad band connectivity at village level, improved access to services through IT enabled platforms, greatertransparency in Government processes and increased indigenous production of IT hardware and software for exports and improved domesticA National Rural Internet and Technology Mission for services in villages and schools, training inIT skills and E-Kranti for government service delivery and governance scheme is also proposed at a cost of Rs 500 crore.

“We will allocate Rs 100 crore for improving governance across villages,” Jaitely said.

--Personal computers get cheaper: The Finance Minister has exempted all inputs/components used in the manufacture of personalcomputers from 4 percent special additional duty (SAD).

-- Boost to hardware manufacturing in India: The Budget has imposed an education cess on imported electronic products to provide parity between domestically produced goods and imported goods. Basic customs duty on LCD and LED TV panels of below 19 inches is now zero to boost manufacturing of these panels in India. According to CRISIL, atypical 19-inch LCD/LED TV/monitor will cost Rs 1,000 less after the customs duty reduction on panels.

– E-commerce has been opened for foreign direct investment (FDI):This will provide much-needed clarity to foreign players and should result in increased commerce and also more jobs.

-- e-Visas will be allowed in nine airports, using technology to boost tourism.

-- Rs 7060 crore to develop 100 smart cities across India: This is huge, because smart cities that cities that leverage technology in each area, ranging from operations through applications like ERP to providing citizen portals, and obviously faster Internet access. This will indirectly boost spending on technology.

-- Government to set up Industrial Smart Cities as part of industry corridors.

-- eBiz platform for manufacturing: To give necessary impetus to the manufacturing sector, the eBiz platform aims to create abusiness and investor friendly ecosystem in India by making all business and investment relatedclearances and compliances available on a 24x7 single portal.

– EPFO will be improved via computerisation: Employees’ Provident Fund Organisation already uses technology. So its not clear what exactly this entails.

– Biotech clusters to be set up in Bangalore and Faridabad.

-- Jaitley hopes to bring solution to the Goods and Services Tax (GST) issue this year. But it’s not clear yet how exactly he will do this and how the Centre-state fracas over GST will be solved.