Budget Expectations from – Telecom Sector

Y Guru, Chairman & Managing Director, Celkon Mobiles

“What the Government does to leverage the unique position that India is in today will define if we are going to end up being a super economy or a country that could have been one. The intrinsic strengths of the country on their own cannot be the drivers of growth, the government needs to really create hard and soft business friendly environment to give credence to its intent of driving growth. The need of the moment to showcase the fact that this government means what it says.

In the telecom industry context the scope to leverage the industry to aid the overall growth is tremendous. We are in a new era - hence business investments in current times should not be viewed plainly in terms of Plant & Machinery but investments in terms of technology and infrastructure should be given more weightage when formulating incentives. Incentives on investments are required to accelerate the economic growth and improve the business sentiments and therefore have a positive spinoff all around. Therefore the government should re-define the policies related to investments and provide for rebates/ incentives accordingly.

The Government has the opportunity to support and encourage with various benefits/ incentives/schemes for those companies who have global aspirations and are taking Indian brands to a global market place. These companies may or may not be manufacturing the products in India – but the resultant impact on the perception of what India can do, could be significant.

In order to boost the sector the government should refund 100% of import duties for all exports made by Indian companies.

We believe reduction of import duties with an option to allow businesses to Make in India will be a welcome move. This will give a huge boost to the Make in India initiative and also enable Indian businesses to exponentially grow.

Creating a suitable ecosystem for manufacturing in India and more importantly creating a favorable perception of India being business friendly is extremely necessary at this stage. I believe the government should take this aspect on priority. Reducing Corporate Income Tax to 20% to enhance growth is another aspect the government should be consider – as a rider they can create a mechanism that this is linked to the investments being made. “

Debasis Chatterji, CEO, Netxcell Limited

“The Economy should start growing again @8% and the interest rates should be reduced to achieve this growth. This budget should take measures to reduce complex and heavy taxation in terms of both personal and corporate income tax. The economy will benefit with more incentives for the service industry especially tourism. There will be multifold impact of manufacturing in India. Firstly, we will save valuable foreign exchange. Secondly, we will be independent of the erratic supply schedule from the foreign countries. Thirdly and most importantly, our security concerns will be addressed as the entire process will be run in-house. Hence we will have better control on the quality and security aspects. Hence the ‘Make in India’ initiative is a welcome move. Moreover further incentives for startups and small scale businesses will help in enhancing employment in the country.

The telecom industry needs to be revived with a Realistic 3G spectrum auction. Finalization of a concrete telecom policy will provide clarity and enable ease of doing business for the industry. Tax benefits and incentives for VAS companies to energize the VAS ecosystem are much needed. The government should now look at boosting the telecom sector with the ‘Make in India’ initiative. Selection of key areas and forming exclusive technology parks for the telecom industry will be a welcome and most necessary initiative. Telecom needs the ecosystem to develop to be able to make in India, hence if government provides incentives to ancillary industries it will boost the sector. Moreover there should be adequate tax rebates to make it more viable for companies to do business in India.”

Nigel Eastwood, CEO, New Call Telecom

According to Nigel Eastwood, CEO, New Call Telecom, “We are very excited by the Hon’ble Prime Minister’s Digital India dream. It marks a new beginning for India, her people and economy, and will integrate every Indian into her new future.

However, to realise that dream, the government must consider updating the key policies for establishing technology parks and attracting foreign investment into the ICT and infrastructure sector. Ministers must ensure liberal laws, giving tax and non-tax incentives to investors so they can work effectively and swiftly with the Government to deliver this new future. Currently, several existing tax provisions exert additional burdens on the industry that not only require a thorough review but also need complete revamping in few cases. As a newcomer in the Indian telecoms market, we would seek efficient policy changes, coupled with effective implementation to sustain and promote growth so that companies like ours can partner with the Government in connecting rural areas with high-speed internet networks.

The vision of ‘Make in India’ relies heavily on SMBs. ICT can help Indian SMBs address the challenges of global competition and a volatile business environment. The growing adoption of smartphone apps that enable VoIP calling, instant messaging, navigation and tracking etc., have opened new business opportunities for SMBs in India. Technologies like VoIP, IP PBX, virtual office, virtual meeting and video conferencing are redefining SMB businesses by bringing significant savings in telecommunications costs and improving operational efficiency. With the support of these technologies, Indian SMBs will be in a position to truly compete with global competitors.

Meanwhile, smartphone applications that improve mobility and workforce productivity are driving mobility (BYOD) among businesses. Organisations are increasingly turning to these applications as they also help them reduce the cost of hardware, support, maintenance and telecommunication costs. Therefore, the Government should try and relax foreign investment policies so that India’s technology can advance at the rate needed by both SMBs and larger corporations.”