Quote from Mr. Partha Iyengar, Country Manager, Gartner Research, India on Pre- Budget expectations:
From an IT industry perspective (& the overall industry as well), the budget needs to address the following key areas:
- Infrastructure creation
The IT industry has reached a point where infrastructure bottlenecks at a city and country level directly impact business growth. The industry has grown to a point where it is unable to create its own enabling infrastructure (Power, roads, connectivity, telecom quality, et al), which it has done in the past!
- An Innovation enabling environment
This involves creating the financial, IP protection, VC and capital markets capabilities and ecosystem to promote innovation activity in India.
- Streamlined business environment
The beginnings need to be made to create a high performing business environment with clear, unambiguous tax laws, legal framework, transparency and speedy resolution of conflicts. Some of these are huge initiatives (e.g. streamlining the legal resolution process), but a strong statement of intent needs to be made in the first budget of the Modi government.
- Project Indian clout globally for industry
This is not so much a budget issue as another statement of intent, where the government indicates it’s willingness to ‘go to bat’ for the IT industry and industries overall when there are global direct or indirect trade barriers being erected (e.g. the H1-B issue in the US). The Indian government should not be apologetic about retaliating at a country to country level if unfair trade practices hinder Indian IT and business interests.