The new government has shown some promise so far in highlighting few crucial elements for improving the current economic scenario, enhancing the investor sentiment thereby leading to country’s overall development. As its going to be the first full-fledged budget by the new government, the industry is certainly keen to see some tangible initiatives from the Finance Minister. I believe this budget will set the tone from economic growth path perspective and needs to have strong policy decisions to control inflation and reduce the fiscal deficit. Reduction of oil prices has happened at a good time which will help reduce the deficit. The government should look at giving further boost to entrepreneurship and provide additional support to scale the startups. ITIR was a welcome move, the industry would look forward to more such initiatives. While Make in India is a great initiative announced by the government, the details are yet to be seen and I hope this budget will layout some realistic measures.
Telangana state needs a fresh start for certain sectors such as manufacturing and real estate. Any support from the center for these industries with further action from the state government will surely help enhance growth in the state as well.
From the IT/ ITES industry perspective clarity on transfer pricing aspects is much awaited in this budget. Additionally the budget should have more support initiatives and mechanisms to boost the startup ecosystem. Initiatives to nurture more engineering talent and boost the skilled manpower in the country with adequate infrastructure assistance should always be in the mix.
On the ‘Make in India’ initiative
The Make in India is a good initiative by the Prime Minister. Several companies in the IT sector have been making in India since a long time including Pega. The industry is in support of the initiative and is shifting from services led to a product led ecosystem which is commendable. Like I mentioned above, ample support from the government’s end will be key to nurture this trend. Support for the startup ecosystem with incentives, co-working spaces, trainings and mentoring etc will bring in the desired results on this front.