Post Budget 2019 Reaction by Mr. Suman Reddy, MD, Pegasystems India

The main objective of the Budget as set by the Finance Minister is to set the groundwork for PM Modi’s aspiration of a $5-trillion-dollar economy. Arguably, one of the biggest beneficiary of this vision would be the technology industry. Following up from technology-related announcements during the interim budget including a national AI-centre and the Digital India vision, the government has acted on additional expectations from the sector. The elimination of excessive scrutiny through the angel tax through an e-verification process will improve the trust factor in valuation activities. Also, the government has put the first step forward with skilling focus on emerging technologies like artificial intelligence and robotics. However, the government has not elaborated on the latter, further to NASSCOM’s recommendations to show its commitment with an initial fund of Rs. 500 crore, and incentivize corporates to skill training by promoting spending. We also welcome the government’s move to allocate 25% of corporate taxes by increasing the ambit of companies from Rs. 250 – 400 crores of turnover. This will allow spending and boost the economy, while driving returns for the government.

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