Budget 2023: Government should provide high priority to digital infra, skilling

Budget 2023-24 would probably be the most challenging one that Finance Minister Nirmala Sitharaman would be tabled on 1 February, 2023. I think this year’s Budget should give digital infrastructure and skills a high priority. The government’s commitment to digital skill development and its alignment with the IT tech sector, and the PLI scheme targeted at helping manufacturers of IT hardware and computer servers need to receive equal weight in this year’s Budget. Expanding PLI programme The Product-Linked Incentive (PLI) scheme can diversify and increase India’s exports to new heights. For the purpose of increasing exports, the government should consider increasing the PLI exposure and broadening it to prospective emerging industries. The current PLI programmes are only available to corporations and big businesses operating in specific industries. In order to increase exports, it is anticipated that the Budget 2023 will expand PLI programmes to certain industries and MSMEs in the manufacturing sector. Development of talent skill According to the Centre for Economics and Business Research (CEBR), India has the capacity to grow to a $10 trillion economy by 2035, and the advantages of this economic expansion must be shared with the population. In order to handle the present economic challenges, such as unemployment, inflation, and fiscal imbalance, the Budget is crucial. The Budget’s most important element should be its focus on formal employment development over the next decade. Therefore, it is important to encourage the government to consider the following with a focus on enhancing employment and employability in the nation. Tax incentives For the expansion and use of new-age technology applications like artificial intelligence (AI), the internet of things (IoT), machine learning (ML), etc., there is an anticipation of a tax advantage on capital or operating investment. The Budget is anticipated to include ASSOCHAM’s proposal to lower the current 18 percent interest rate for late GST payments to 12 percent. Implementation of NLP The National Logistics Policy (NLP) is anticipated to be implemented in this Budget. The NLP will lower expenses and remove bottlenecks. Around 14 percent of India’s GDP is spent on logistics. To compete with other developing nations, the government should lower the cost of logistics to 8–10 percent of GDP. It is hoped the government will put a strong emphasis on logistics industry cost management. Adoption of labour codes Many state governments have yet to adopt the four new labour laws, despite the Parliament’s adoption of them in 2020. The state governments may soon be pressured by the Union government to enforce the Labour Codes. Therefore, the sector anticipates a streamlined procedure for adopting new labour codes in FY 2023–2024. Expansion of 5G The usage of digital services increased across the board in the domestic market. India also completed the 5G spectrum auction smoothly, and major telecom providers have indicated plans to roll out 5G services this year. 5G is anticipated to usher in the next stage of the digital revolution in India and drive digital transformation at a never-before-seen pace with its dependable and effective connection speeds. Innovation and boost towards security A favourable environment for the sector to develop will be ensured by regulatory and policy measures such as the adoption of the Data Protection Bill and the establishment of a strong and efficient data protection authority. Additionally, it is hoped the government will offer financial incentives to promote innovation and encourage business owners to use risk orchestration techniques to address issues like fraud prevention, data security, KYC compliance, and identity theft. The sector is hoping for more outlay, incentives, and tax breaks to encourage businesses to create a strong data security infrastructure that will support the government’s vision of a ‘digital India’. The writer is Chief Finance officer, Acer India (@Acer_India), a PC brand. Views expressed are personal. Read all the Latest News , Trending News , Cricket News , Bollywood News , India News and Entertainment News here. Follow us on Facebook, Twitter and Instagram.