To bring the Indian Economy on the right track and to achieve the Modi Government’s target of USD 5 Trillion Economy, the Union Budget 2020 is expected to be a major focus on three themes Aspirational India, Caring society and Indian Economic Development by taking into consideration the Indian Technology sector and Artificial intelligence initiatives and Startups.
On February 1, the Finance Minister Nirmala Sitharaman presented the Union Budget 2020 in the Parliament having the several major announcements. Here are some of the highlights of Budget 2020 for the Indian Technology Industry –
- The budget offers a scheme to make the investment to boost electronics manufacturing in India by encouraging manufacturing of semiconductor packaging, mobile phones and other electronics equipment.
- Tax Benefits in sectors such as artificial intelligence, machine learning, virtual reality, deep technology, big data analytics and 3D printing. This would push forward the companies and startups in India working on these new technologies.
- Major announcements and sanctions towards the National Centre for Artificial Intelligence. A proposal for setting up of Data Centre parks throughout the country.
- In order to boost domestic manufacturing of electric vehicles and to attract large investment in the electronics value chain, the Finance Minister has announced an increase in customs duty rates on such vehicles, mobiles phones and their components.
- The government has also proposed custom duty on SKD (semi knocked down) forms of electric trucks, two-wheelers and buses. It would be 25% from current 15% and will come into effect from day 1 in the month of April, 2020.
- A properly designed preventive regime to target diseases using AI and Machine learning under medical sector.
- For over 5 years, an amount of ₹ 80 billion ($1.13 billion) will be provided for quantum technologies and applications.
- Skill and training programmes to promote R&D solution, robotic process automation and areas of big data analytics etc to enhance the skillset of youth of India in tech sectors under the initiative of Digital India and Skill India.