Budget 2022 calls for huge initiatives to fire up India’s IT industry. The third-largest economy of Asia is taking many revolutionary steps to boost the growth of the IT sector. In the anticipated budget of 2022, the government made various provisions that will directly impact India’s vision of digitalization.
The Indian IT sector has welcomed the union budget for acknowledging announcements like India’s own digital currency, digital health, digital banking, e-passport, drone manufacturing, etc.
Many business analysts believe that this budget has a long-term vision to boost the growth of the IT industry.
We will try to find out the impact of budget 2022 on the IT sector.
India’s Digital Currency
The finance ministry has made remarkable decisions on cryptocurrencies and other digital assets. A 30% tax will be imposed on the earnings from transactions of digital asset trading. Gifts in the form of digital assets will also be taxed. This initiative will rule out the blanket ban on cryptocurrencies, NFTs, and other digital assets. However, this initiative will make digital asset trading less profitable.
The Indian government is planning to launch its digital currency at the start of the financial year 2022-23. As per the budget, the state bank of India will launch its ‘digital rupee’ or ‘central bank digital currency’ based on blockchain technology. This decision will also affect the profitability of digital exchanges.
To magnify the growth of digital infrastructure, the union budget of 2022 has proposed schemes to promote digital infrastructure. Fintech and other technology-based infrastructure will also enjoy the lenient provisions of the budget.
In the draft data centre policy 2020, the government intends to provide infrastructure status to data centres. It is expected that the data centre industry will get infrastructure status from 1st April 2022. After getting infrastructure status, this industry can get financial benefits, concessional funding rates, and overall setting up cost reduction.
The infinite potential of online gaming is now getting the government’s attention. The government has identified the potential of animation, visual effects, and the gaming sector to provide countless jobs for young and dynamic Indian professionals.
The government is planning to set up a task force to boost and promote this segment of the IT industry. All stakeholders have invited recommendations for capacity building of the Indian market.
The Indian government collaborates with states and educational institutions to create a world-class infrastructure for online gaming.
As per the finance ministry, the budget creates a digital infrastructure to tackle health issues. Indian IT has a massive role in making this digital health infrastructure. Unique health identity, digital registration of health service providers, universal access to health facilities, and many more initiatives are under the government’s plan.
For promoting mental health, the government is planning to create 23 tele-mental health centres across the country.
Overall, the government has clear intentions to promote the growth of the IT industry directly or indirectly. All the initiatives mentioned above will impact the growth of the Indian IT industry. The promotion of the digital India scheme is creating a boost in the IT industry, and it seems that the future of the Indian IT industry is very bright.
So, these are some of the significant impacts that the IT sector will witness with the new budget of 2022. No doubt, the IT sector has great scope, and in the coming years, the IT sector will have more opportunities for businesses.
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