PwC expects infrastructure boost in technology sector in Budget 2014

With Budget 2014 to be announced in the following week, industry personnel from across sectors pen down their viewpoints and expectations on the same.

Sandeep Ladda, India Technology leader, PwC India shares his expectations from the budget in Technology Sector.

He points out -

• Removal of MAT applicability for SEZ units – This has been a long-standing demand of the industry, which should be considered this year by the new government to give the necessary fillip to the increasingly challenged margins of the players in the IT sector due to global pressures.

• Incentives for specialist segments – Incentives should be offered for segments like software products, hardware engineering and semiconductor which are seen as the growth drivers for the sector. This will enhance the innovation quotient of the sector.

• Simplified tax structure and a straightforward regulatory framework – This would boost investments into the country and will create a conducive ecosystem for carrying out business. This would create enough opportunities for the sector to show significant growth.

• Talent development - Despite being a labour surplus country, India is facing an apparent talent deficit. The industry in partnership with the government needs to address the industry-academia disconnect by partnering with engineering and other technical institutes and enhancing their in-house training facilities.

• Infrastructure boost in tier 2-3 cities - The sector has moved towards the tier 2-3 cities but lack of supporting infrastructure in terms of internet connectivity, well-equipped airports, poor social infrastructure like schools, hospitals, etc. have hampered their growth.

• Electronics Manufacturing Hub - With a view to make India a manufacturing hub and with bulgeoning demand of Technological products, the Government should provide an effective single window clearance mechanism to the Electronics/Semi-Conductor Manufacturing initiative launched by the Government.
While everyone wishes their voice be heard, we believe it’s only a wait and watch situation for all.