The Union Budget 2016-17 has given a big boost to the Digital India vision of the Prime Minister. The announcements made by Finance Minister, which are expected to give a big boost to Digital India initiatives, Digital literacy, greater application of Cloud and above all big push to the Electronics Manufacturing are appreciable steps. The Finance Minister has also focused upon the larger involvement of post office platform for financial inclusion, including delivery of services.
Giving details of certain provisions made in the Budget relating to his ministry, the Minister for Communications and Information Technology Shri Ravi Shankar Prasad said that some profound changes, which happened in the last 20 months include:- .
1. IT / ITeS exports have crossed USD 100 billion.
2. India�s share in global IT services outsourcing presently is 56 %, is growing every year.
3. The total employment in IT / ITeS sector is 37 lakhs in this financial year, out of which the net addition is 2 lakhs.
4. Electronics Manufacturing has seen remarkable improvement, due to the initiatives of this government. When this government came to power, in June 2014, the proposals worth of only Rs. 11,800 crores were received. Now, it has risen to Rs.1,20,294 crores.
5. Due to the initiatives taken up in the last Budget, especially the duty rationalization, we have noticed remarkable acceleration in the field of Electronics manufacturing. In this connection, mobile manufacturing presents very encouraging area. In 2014-15, the mobile units manufactured in the country were Rs. 5.4 crores, which have more than doubled to Rs.11 crores in 2015-16. After the duty rationalization in the last Budget, 16 new mobile manufacturing units have been set up in this financial year.
FURTHER NEW INCENTIVES IN THIS BUDGET:
Electronics Manufacturing:
Efforts made�� in the� previous Budgets� of this� government� for promoting electronic manufacturing�� in India� has� also� got� encouraging� boost�� during� this budget� by� further��rationalization�� of� duty�� structure.�� As� a� result��� of� this�� the domestic� manufacturers���� of� Routers,�� Broadband�� Modems,� Set-Top� Boxes, Digital Video Recorders,� Network Video Recorders,� CCTV Camera,� Lithium- Ion� Battery� would� enjoy�� duty�� advantage� of� 8.5%�� vis-a-vis� imported� goods. Domestic�value��� addition� in mobile� phone� phones,� battery,� wired headsets/speakers���� would enjoy� a duty� advantage� of 10.5% vis-a-vis imported goods.� This�� will�� also�� encourage�� domestic�� manufacturing�of components. Domestic manufacturing�� of routers�� and�broadband�modems�� will�� further encourage manufacturing�of telecom equipments.
In the�� IT/ITeS (IT Enabled Services) sector, sunset�� date�� for Section 10AAof the Income Tax Act allowing tax benefits for IT units in SEZs has been extended from 2017�� till 2020.�� This will enable technology units�� to set up and commence operations in SEZs.
A very�� significant incentive�is�� the�� extension�� of� Section� 80� JJAA�� to Income Tax� Act� for� skill� development� to� services companies� as� well.� This will permit 30 % of additional wages paid to new workmen, deductible for 3 years. This� will� give� a� big� boost�� to� the�� BPO� operations,�� which� this�� government� is pushing-in� a big way.
Encouragement�to Digital�Literacy & Digital Lockers:
Shri Prasad said that he is�� happy�� to�� note��� that��� the�� Finance�� Minister has��� provided for creation of Digital depository of school leaving certificates, college degrees and mark-sheets. This�� would enhance�� the�� footprint of cloud�� technology in the Country.� The� IT department�� has�� already� laid� down the� framework� for� cloud technology and� will assist� in� the� expansion.
The Budget has given extraordinary�� expansion� to Digital Literacy in� the�� country, ��consisting� of� imparting� digital� literacy� to� 6� crore households� in� next�� 3 years. The IT department was keenly pushing for this expansion.� As of now, against the target of 52.5 lakhs, more than�40 lakhs have been trained.
Use of Aadhar�� platform��� for delivery��� of services
The Finance Minister himself, has� announced in the�� budget,�that government will now� be� moving a� legislation� to� give� a� statutory�� backing� to Aadhar,�� for�� delivery� of�� services�� /��� subsidies�� /�� benefits,�� corning� out ���of Consolidated� Fund��� of� India.� This�� will prevent leakages by identifying the beneficiaries correctly and would encourage good governance.
The Minister is assured� to note� that� in the� budget speech, Finance Minister has� laid� great� stress� on the� use� of digital platform across various departments. This�� will further encourage consolidation of seminal programmed of Digital India
Telecommunication:
FDI�� equity inflow in telecom Sector has touched a new high during FY 2014-15,� which� is� $2895� million which� is� 80%� more�� than��� the�� FDI� equity� inflow received during� 2012-13� ($304 million) and��� FY 2013-14� ($ 1307� million) put together.
