The aim is to make ‘Digital India’ reach every sector of the economy. This is part of the ‘Vision of the Decade’, as outlined in the interim budget in February 2019.

The Vision is being carried forward in the Union Budget. Micro, small and medium enterprises (MSMEs) and start-ups are among the budget highlights that will give India a digital push. “India has taken a big leap in digital data. Digital infrastructure has widened and we can harness Artificial Intelligence (AI) and analytics for governance and enhance revenue,” said Manish Jain, partner digital, KPMG in India, commenting on digital infrastructure.

The budget estimates that the Indian economy is expected to become a $3tn economy in the current year. As Digital India, its economy will get a big boost with the investments in digital infrastructure and by the creation of jobs in small and medium firms. There’s also a move towards bringing the masses under the digital umbrella through digital payments and services. “Under the Pradhan Mantri Gramin Digital Saksharta Abhiyan, over two crore rural Indians have so far been made digitally literate,” said Sitharaman in her speech.

BharatNet is targeting internet connectivity in local bodies in every Gram Panchayat in the country. Gram Panchayats are the local self-government institutions at the village level whose head is the focal point of contact between government officers and the village community.

Also known as Bharat Broadband Network Limited, BharatNet is a telecom infrastructure provider, set up by the Government of India under the Department of Telecommunications for the establishment, management and operation of the National Optical Fibre Network to provide minimum 100 Mbit/s broadband connectivity. “BharatNet will bridge the gap in digital literacy between rural and urban divide. Public private partnership will be key for the execution,” said Jain.

Apart from digitisation, the Budget has opened out channels to strengthen the research ecosystem in the country. That’s because research and development is crucial for an advanced ecosystem of infrastructure to exist. The government’s focus on incentivising research by forming a National Research Foundation and encouraging foreign engineers and researchers to come and collaborate is a landmark announcement for India’s electronic industry. Innovation will be a growth driver for the development and progress of the country.

It’s also a thumbs-up for startups. “Budget 2019 captures the Government’s vision of New India accurately, promoting ease of business and living. As a startup ourselves, we welcome the move to organise a global investors’ meet in India to ensure equal opportunities for startups with growth potential. It will put India on the global map as a land of business opportunities,” said Rakesh Soni, CEO, LoginRadius, a cloud-based customer identity management platform.

As per a statement issued by technology trade body NASSCOM (National Association of Software and Services Companies), the budget has also focused on the growth of the startup ecosystem, announcing that funds raised by start-ups will not require scrutiny from any tax body, thus ensuring there aren’t any hindrances in their overall development. A new television channel to allow start-ups to promote themselves, as well as make critical connects with venture capitalist networks to raise funding, will further build the community.

Besides that, the focus is on up-skilling youth in frontier technologies. “The initiatives to train the Indian youth in technologies of the future such as AI, Internet of Things (IoT) and Big Data are another welcome move by the Government. With more than 50 per cent of the population below 25, India has a significant advantage compared to the developed nations and these skills will serve as doorways to help contribute to the global workforce’s of the future,” felt Soni.

It is also commendable to see that ease of doing business has been a focus for the Government over the past few years. This is echoed this year, with proposals in the budget aimed at reducing taxation, as well as creating opportunities for MSMEs. A payment platform for MSMEs will be created to enable filing of bills and payment thereof, to eliminate delays in government payments. A sum of Rs 350 crore has been allocated for FY 2019-20 for 2 per cent interest subvention (on fresh or incremental loans) to all GST-registered MSMEs, under the Interest Subvention Scheme for MSMEs.

To encourage digital payments and facilitate the cashless economy, the finance minister has proposed to levy TDS (tax deducted at source) of 2 per cent on cash withdrawals exceeding Rs 1 crore in a year from a bank account. Further, there are low-cost digital modes of payment such as BHIM UPI (Bharat Interface for Money Unified Payments Interface), UPI-QR Code (Unified Payments Interface Quick Response Code), Aadhaar Pay, certain debit cards, NEFT (National Electronic Fund Transfer) and RTGS (Real Time Gross Settlement) which can be used to promote a less cash economy.

“I, therefore, propose that the business establishments with annual turnover more than Rs 50 crore shall offer such low-cost digital modes of payment to their customers,” added Sitharaman.

Consequently, the digital infrastructure is expected to witness several upgrades with cashless payments, income tax automation, as well as R&D in agriculture. Internet infrastructure and allied services related to the digital world will open out streams of revenue.

In a nutshell, this Budget gives emphasis on MSMEs; start-ups; defence manufacturing; automobiles; electronics; semiconductor fabrication (FAB); batteries, and medical devices under the grand vision of Make in India. This, along with digitisation, will help bring disparate vendors and small businesses into a formal economy. Digital access leads to digital inclusion which results in economic growth. In Sitharaman’s own words, “India Inc. is India’s job-creators and nation’s wealth-creators.”

The aim is to make ‘Digital India’ reach every sector of the economy. This is part of the ‘Vision of the Decade’, as outlined in the interim budget in February 2019.

The Vision is being carried forward in the Union Budget. Micro, small and medium enterprises (MSMEs) and start-ups are among the budget highlights that will give India a digital push. “India has taken a big leap in digital data. Digital infrastructure has widened and we can harness Artificial Intelligence (AI) and analytics for governance and enhance revenue,” said Manish Jain, partner digital, KPMG in India, commenting on digital infrastructure.

The budget estimates that the Indian economy is expected to become a $3tn economy in the current year. As Digital India, its economy will get a big boost with the investments in digital infrastructure and by the creation of jobs in small and medium firms. There’s also a move towards bringing the masses under the digital umbrella through digital payments and services. “Under the Pradhan Mantri Gramin Digital Saksharta Abhiyan, over two crore rural Indians have so far been made digitally literate,” said Sitharaman in her speech.

BharatNet is targeting internet connectivity in local bodies in every Gram Panchayat in the country. Gram Panchayats are the local self-government institutions at the village level whose head is the focal point of contact between government officers and the village community.

Also known as Bharat Broadband Network Limited, BharatNet is a telecom infrastructure provider, set up by the Government of India under the Department of Telecommunications for the establishment, management and operation of the National Optical Fibre Network to provide minimum 100 Mbit/s broadband connectivity. “BharatNet will bridge the gap in digital literacy between rural and urban divide. Public private partnership will be key for the execution,” said Jain.

Apart from digitisation, the Budget has opened out channels to strengthen the research ecosystem in the country. That’s because research and development is crucial for an advanced ecosystem of infrastructure to exist. The government’s focus on incentivising research by forming a National Research Foundation and encouraging foreign engineers and researchers to come and collaborate is a landmark announcement for India’s electronic industry. Innovation will be a growth driver for the development and progress of the country.

It’s also a thumbs-up for startups. “Budget 2019 captures the Government’s vision of New India accurately, promoting ease of business and living. As a startup ourselves, we welcome the move to organise a global investors’ meet in India to ensure equal opportunities for startups with growth potential. It will put India on the global map as a land of business opportunities,” said Rakesh Soni, CEO, LoginRadius, a cloud-based customer identity management platform.

As per a statement issued by technology trade body NASSCOM (National Association of Software and Services Companies), the budget has also focused on the growth of the startup ecosystem, announcing that funds raised by start-ups will not require scrutiny from any tax body, thus ensuring there aren’t any hindrances in their overall development. A new television channel to allow start-ups to promote themselves, as well as make critical connects with venture capitalist networks to raise funding, will further build the community.

Besides that, the focus is on up-skilling youth in frontier technologies. “The initiatives to train the Indian youth in technologies of the future such as AI, Internet of Things (IoT) and Big Data are another welcome move by the Government. With more than 50 per cent of the population below 25, India has a significant advantage compared to the developed nations and these skills will serve as doorways to help contribute to the global workforce’s of the future,” felt Soni.

It is also commendable to see that ease of doing business has been a focus for the Government over the past few years. This is echoed this year, with proposals in the budget aimed at reducing taxation, as well as creating opportunities for MSMEs. A payment platform for MSMEs will be created to enable filing of bills and payment thereof, to eliminate delays in government payments. A sum of Rs 350 crore has been allocated for FY 2019-20 for 2 per cent interest subvention (on fresh or incremental loans) to all GST-registered MSMEs, under the Interest Subvention Scheme for MSMEs.

To encourage digital payments and facilitate the cashless economy, the finance minister has proposed to levy TDS (tax deducted at source) of 2 per cent on cash withdrawals exceeding Rs 1 crore in a year from a bank account. Further, there are low-cost digital modes of payment such as BHIM UPI (Bharat Interface for Money Unified Payments Interface), UPI-QR Code (Unified Payments Interface Quick Response Code), Aadhaar Pay, certain debit cards, NEFT (National Electronic Fund Transfer) and RTGS (Real Time Gross Settlement) which can be used to promote a less cash economy.

“I, therefore, propose that the business establishments with annual turnover more than Rs 50 crore shall offer such low-cost digital modes of payment to their customers,” added Sitharaman.

Consequently, the digital infrastructure is expected to witness several upgrades with cashless payments, income tax automation, as well as R&D in agriculture. Internet infrastructure and allied services related to the digital world will open out streams of revenue.

In a nutshell, this Budget gives emphasis on MSMEs; start-ups; defence manufacturing; automobiles; electronics; semiconductor fabrication (FAB); batteries, and medical devices under the grand vision of Make in India. This, along with digitisation, will help bring disparate vendors and small businesses into a formal economy. Digital access leads to digital inclusion which results in economic growth. In Sitharaman’s own words, “India Inc. is India’s job-creators and nation’s wealth-creators.”