Interim Budget 2024 for IT Sector : Government focus on Digital Infrastucture, technology innovation etc...

The Interim Union Budget 2024-25 presented by Finance and Corporate Affairs Minister Smt. Nirmala Sitharaman outlines key financial aspects for the u

 Interim Budget 2024 for IT Sector : Government focus on Digital Infrastucture, technology innovation etc...

The Interim Union Budget 2024-25 presented by Finance and Corporate Affairs Minister Smt. Nirmala Sitharaman outlines key financial aspects for the upcoming year. Here are some highlights related to the IT sector:

Capital Expenditure Outlay:

The capital expenditure outlay for the next year is being increased by 11.1%, amounting to ₹11,11,111 crore, which would be 3.4% of the GDP. This investment aims to build on the substantial tripling of capital expenditure in the past four years, resulting in a significant multiplier impact on economic growth and employment creation.

GDP Growth Projection:

 As per the First Advance Estimates of National Income for FY 2023-24, India’s Real GDP is projected to grow at 7.3%. This aligns with the upward revision in growth projections by the Reserve Bank of India (RBI), reflecting confidence in India’s economic prowess despite global challenges.

Focus on Self-Reliance:

The budget emphasizes self-reliance through major investments in R&D, defense technology, skilling programs, and startup incentives. These initiatives aim to boost India’s position as a global tech leader with an industry-ready workforce.

Sunrise Technologies:

The budget proposes a corpus of ₹1 lakh crore to boost private investment in sunrise technologies. This move aims to foster innovation and support startups in their growth journey.

No Change in Tax Rates: 

The interim budget does not propose any changes in tax rates. Additionally, approximately one crore taxpayers are expected to benefit from the withdrawal of certain petty and disputed direct tax demands.

Overall, the budget reflects the government’s commitment to inclusive development, innovation, and making India a Viksit Bharat by 2047. It also underscores the importance of the IT sector in driving economic growth and technological advancement. 🌟💻

FQA

1.  What are the key highlights of the Tech Budget 2024 for the      technology and gadget industry?

• The Tech Budget 2024 includes several significant measures for the technology and gadget industry:
• A corpus of ₹1,000 crore will be set up with a 50-year interest-free loan to encourage private sectors to scale up research and innovation significantly in sunrise domains.
• No changes in tax rates for direct and indirect taxes, including export duties.
• Announcement of three major railway corridors: Port connectivity corridor, energy, mineral, and cement corridor, and high traffic density corridor.
• Strengthening of the finance sector to enhance efficiency.
• Emphasis on digital, social, and physical infrastructure development1.

2. What are the expectations of the tech sector from Budget 2024?

Expectations include substantial investments in cyber defense, artificial intelligence (AI), and defense technology research and development. Sectors such as gaming, cybersecurity, smartphone manufacturing, and esports are closely watching the budget for relevant provisions.

3. Are there any changes in tax rates for the IT sector in the 2024 budget?

The interim budget proposes to retain tax rates for direct and indirect taxes, including export duties.

4. What measures have been proposed for the infrastructure sector in the 2024 budget?

While there are no changes in tax rates, the sunset dates for certain tax benefits expiring on 31 March 2024 have been extended to 31 March 2025.