Budget 2020: Analysts highlight importance of digital infrastructure and data

Leading analyst firms, Deloitte, KPMG and E&Y highlighted the increasing focus of data to the country’s goals and ambitions

Maninder Bharadwaj, Partner, Deloitte India
The setting up of data centric parks in our own jurisdiction will encourage innovation, the ease of accessibility, creation of jobs and in gaining competitive advantage in the era of globalization. Ever since the launch of Digital India initiative by Hon’ble PM in the year 2015, technology based solutions are being rapidly adapted by businesses. The security aspects during this rapid technology transformation should be considered a vital component to protect the digital universe from cyber threats which eventually could compromise the envisaged growth. Cyber everywhere, grow anywhere

Purushothaman KG, Partner, Telecom Sector, Leader, KPMG in India
The Honourable Finance Minister made important references in Budget 2020 to the power of new age technologies like AI, IoT and data analytics to shape the way we live and work. Telecom, and more broadly digital communications infrastructure, support all these applications and in this regard, the allocation of INR 6,000 crore in FY21 to hasten the implementation of BharatNet is very welcome. The government is rightly ensuring that citizens at the village level are part of the digital network with its goal of linking 100,000 gram panchayats in FY21 to the FTTH backbone. The Finance Minister also proposed a scheme to promote the manufacturing of mobile phones in India. Finally, as the Honourable Finance Minister said, data is the new oil, and we look forward to reviewing the policy to enable the private sector to build data centre parks throughout the country. However, some of the expectations of the debt laden sector in the form of reduction of levies and relief/ moratorium on current dues, seem to remain unaddressed in the budget. We hope some of the post budget policy reforms will seek to provide the much-needed support to the sector.

Ravi Mahajan, Tax Partner, EY
The Finance Minister’s speech reflected the Government’s commitment to press the peddle on India’s digital transformation journey. Such public-private partnerships would spur innovation and bode well for the future of India’s technology sector. Had the sector’s demand for extension of tax holiday benefits and abolition of MAT for SEZ units been met, it would have indeed been the icing on the cake