Hemant M Joshi, Partner, Deloitte Haskins & Sells LLP on Telecom, Media and Technology shares his view about how this budget will impact the telecom sector.
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.
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.
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.