Will the Union budget 2018 address concerns about the growth of the information technology sector in India?

It is expected that by the end of December 2018, Nifty will achieve returns of around 10 to 15% due to the strong support of the global IT industry.
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The information technology industry was a ray of sunshine that put India on the world map for the right reasons. The Gartner report states that we can expect IT spending growth of 4-4.5% next year. With the current wave of automation, digitization and awareness of the benefits of technology and e-commerce, the coming years should be an exciting time for the technology sector, changing the way India works and the world. The Indian government recognizes the immense potential of the information technology sector and has launched programs such as “Digital India” and “Start-up India” to boost the growth of the information technology industry. ,

The gap between supply and demand must be closed

With the rapid development of the information technology sector and consumers’ changing consumer habits, the sector is experiencing a gap between supply and demand. The industry urgently needs to fully rehabilitate the computer population. Another key aspect of the computer industry is the application side of the technology. This evolving aspect of the information technology industry offers tremendous opportunities, but requires special attention for optimal use.

Suitable incentives

The Union budget for 2018 should create incentives for information technology infrastructure to enable a high level of technology and talent development in the digital space. We can see that the proposed reduction of the corporate tax rate to more than 25% still has a lot to do to help technology companies. especially those in the lower tax code. With this reduction, companies in a lower tax bracket can spend more money on growing their products and operations.

Increase in household expenditure

The information technology sector will increase sharply if the government can increase its budget expenditures for the development of smart cities. The Government of Karnataka has already established in 1188 Crore INR for the development of six smart cities, which will encourage other states to invest. Such projects are extensive and can last between 20 and 30 years. This also means that the industry will benefit more than a decade from this. Announcing smart city dates is a welcome opportunity for companies that focus on the same thing. Help and support from the government at the political level gives hope for various economic interests that would benefit the industry.

Role of the government

In order to improve development and profit growth in the information technology industry, the government should focus on issues related to the MEOP, service tax, tax refunds, etc. out of reach of the IT agreement signed by India. This will lead to better development and earnings growth in the IT industry.

These measures will significantly support the country’s IT manufacturing and telecommunications sectors. The IT industry itself should be brilliant for India. We have seen S & P, Sensex and NIF NSE increase by more than 30% each year over the last year. This “Bull Run” is expected to continue in 2018. It is expected that by the end of December 2018, Nifty will achieve returns of around 10 to 15% due to the strong support of the global IT industry.

In short, it will be a very good 2018 year for the information technology industry, albeit no wonder. We can expect significant changes that will benefit the industry.

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