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How Budget 2014 Will Reinvigorate Digital India

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With the government set to increase FDI flow in the eCommerce sector, the budget 2014 is creating ideal ground for reinvigorating digital India. We are presenting some industry views on the budget and how it is set to further realize the full potential of the eCommerce sector.

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Sandeep Ladda, India Technology leader, PwC India

"Liberalisation of FDI in eCommerce sector will provide much-needed certainty to foreign players and to a sector that has the promise to provide increased commerce and generate employment in the country. This will also provide boost to the sector and create healthy competition so as to benefit all the constituents in the ecosystem - consumers, government, eCommerce players, and retailers in general".

Shashank Mehrotra, General Manager and Business Head at BigRock.com

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“We believe that the Union Budget for 2014-15 is a step in the right direction for micro, small and medium enterprises (MSMEs) across the country. From the Rs. 200cr provision to set up a Technology Centre Network for MSMEs to the impetus for budding entrepreneurs and widening broadband penetration, these moves are set to give the MSME sector more government support than they have ever had before. These developments will benefit web services companies like BigRock as more and more entrepreneurs harness the power of the internet to expand their business.”

Hemant M Joshi, Partner, Deloitte Haskins & Sells LLP

“The budget offers exciting opportunities to TMT sectors. GST roadmap, which states that GST will be implemented by end of year, would result in multiple layers of taxation and also avoid litigations. The budget encourages local manufacturing of electronics products. Although there are few negative aspects such as imposing 10% customs duty on specific telecom products and service tax on mobile and online advertising, overall the budget provides positive picture.

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Telecom

The budget provides growth opportunities to telecom sector to provide enabling infrastructure. Modernisation of cities and providing high speed connectivity to build smart cities will need roll out of new efficient technologies such as 4G and optic fibre deployment. The 24/7 power to all households, rural power infrastructure and emphasis on solar power will need sophisticated telecom infrastructure for building robust and reliable smart grids across the length and breadth of the country. Mobile banking and the vast business correspondent model of telecom operators will help in fulfilling the social objective of financial inclusion.

Technology

The emphasis on e-Governance, computerisation, e-Visas, FDI in e-Commerce, digital classrooms, etc. will enable in the making of digital India and offers opportunities to IT and software companies. In addition, budget provides support to new start-ups through technology development fund which will promote growth and proliferation of Indian technologies.

Media

The new TV and radio channels proposed for farmers, north east and rural communities will help to reduce the information and digital divide.

Though some of the allocations look modest, but the cascading effect of all the proposals would offer big opportunities in the short and medium term for the technology, media, and telecom sectors.”

Picture Courtesy: www.freedigitalphotos.net

Reinvigorate Modi Government Budget 2014 Digital India
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