Budget 2023: IT and tech leaders want more from FM to bridge the digital gap

IT and tech leaders are calling for more support from governments and companies to address this issue, and they are specifically asking for increased investment in digital infrastructure, such as broadband connectivity and mobile networks, as well as investments in new and emerging technologies, such as artificial intelligence, machine learning, and the Internet of Things.

To achieve this, IT and tech leaders are urging governments to allocate more resources to the IT and tech sector in the budget for 2023. They argue that increased investment in this sector will not only help to bridge the digital gap but also create new jobs and drive economic growth.

In addition, IT and tech leaders are calling for a more strategic approach to investment in digital infrastructure and technology. They are asking for a coordinated effort between governments, private sector companies, and other stakeholders to ensure that investments are made in the right areas and that they are focused on achieving specific outcomes, such as increasing access to digital services in rural areas or improving cybersecurity.

Overall, IT and tech leaders believe that the budget for 2023 presents a crucial opportunity to bridge the digital gap and ensure that everyone has access to the digital tools and technologies they need to thrive in today’s increasingly digital world.

The Union Budget 2023-24, hailed as innovative and forward-thinking by IT and technology leaders, fell short of several industry expectations, particularly in consumer electronics production and bridging the country’s digital divide.

The new initiatives, according to the India Cellular & Electronics Association (ICEA), would have no substantial influence on final product prices but are generally in the correct direction.

However, according to Pankaj Mohindroo, Chairman of ICEA, genuine demands from a high-performing industry have not been handled.”They may have had a substantial influence on competitiveness, resulting in improved exports, halting the grey market, and increasing income,” he said in a statement.

For example, a restriction on basic customs duty (BCD) on high-end mobile phone imports is necessary to halt the rising smuggled industry, which is expected to reach Rs 12,000 crore by 2023.

“This legislation would have increased government income, decreased smuggling, ensured fair trade, and aided in the development of legitimate enterprises in India,” Mohindroo added.

Input tariffs on resin, mesh, sponge, film, gasket, logo, cover tape, and adhesive tape must also be reduced from 8.25% to 16.50% to zero.

This was crucial in order to boost the manufacture of a vital vertical — mechanics.The government should also abolish the 2.75 percent levy imposed in the previous budget on various PCBA inputs, connector inputs, and camera module inputs.

Duty must also be removed from specific charger components. While we have created a large charger manufacturing business, these modifications would have made us more competitive.

According to the Internet and Mobile Association of India (IAMAI), the digital business has faced two major challenges.

First, the rate of development in digital penetration has slowed; second, there is a clearly visible digital divide in India, with some parts being marginalised since they are not digitally onboarded.

Although the budget release represents the proper aim and fiscal incentives, other ministries must complement the Finance Minister’s big vision in order to assist in realising her ambition.

The investment in core infrastructure will require major focus on digital infrastructure including digitalization and automation. The budget outlines steps to offer fuel for technology-driven fast transformation, and technology will also serve as a crucial deflationary strategy.

India is ready to lead the shift and usher in green growth, as seen by the green credits, green energy, green transportation, and green farming that have all found a home in the budget this year.