What is in the Budget 2022-23 for the Tech community?

Union budget 2022 analysis for techies

Despite the ongoing crisis, the technology sector continues to show resilience. It has been acting as a catalyst for digital adoption across numerous sectors, amidst the COVID-19 pandemic. With the Union Budget presentation for FY 2022-23 laid down by the Finance Minister Nirmala Sitharaman,on 1st February 2022, all eyes are stuck on figuring out what's in there for all across different technology verticals. We bring to you a list of top tech and digital related announcements as India enters the Amrit Kaal, a 25 year long lead up to India@100.

• Digital rupee by RBI in 2022-23: Digital Rupee Blockchain

This proposal came as a relief to many who have either dived in or wish to dive into the digital currency market. This proposal came as a confirmation for the digital version of rupee as a currency. Although the detailed plan has not yet been published, this proposal provided a broad perspective and thereby evoked positive response across the digital market. RBI, India's central bank will roll out new digital currencies in the upcoming FY, with CBDC (Central Bank Digital Currency) being a legal payment tender. This confirmation has cleared of the speculations and apprehensions that had clouded the skies over digital currency. It is in fact the right time to stay updated and make a wise and profitable choice as far as cryptocurrencies are concerned.

• The proposed taxation structure confirms that Cryptocurrencies will not be banned:


The detailed plan for taxing the digital assets will be rolled down by the RBI. As of now, any transaction in digital virtual assets will be taxed under a flat tax slab of 30%. This has indicated there won't be any blanket ban over the cryptocurrencies.



• 5G spectrum auctions have been proposed for the year:


5G Spectrum In India Budget 2022
The Finance Minister affirmed, "India is committed to move towards better connectivity", so the Union Budget brought along a confirmation of carrying out the 5G auctions this year. This will facilitate the roll out of 5G mobile services in the year 2022-23.   In fact, contracts would be awarded for laying optical fiber in remote areas.

• Electric Vehicles:


Electric Vehicles Budget 2022
A battery swapping policy is to be formulated. Keeping in mind the constraint of space in the urban areas, it was announced that the battery swap  and interoperability standards will be formulated. The private sector will be encouraged to develop innovative and sustainable business models for battery or energy as its services. This will be done in order to increase the efficiency of the Electric Vehicles.

• AVGC Promotion Task Force:


AVGC Union Budget 2022
The Finance Minister also mentioned a budding sector AVGC, followed by the government's commitment to encourage this sector.It was announced that the Animation, Visual effects, Gaming and Comic sector offers immense potential to employ youth.A task force is to be set up to recommend ways to realize this potential and build domestic capacity for serving our markets and the global demand. A mere mention of this sector reflects the government's faith in the unrealised potential that this sector holds.

• Boost for electronic manufacturing:


Electronic manufacturing Sector Incentives Union Budget 2022
With an aim to drive innovations and manufacturing at a greater Impetus, the Government will make efforts to fulfill the vision of relying on a virtuous cycle starting from private investment with public capital investment helping to cloud private investment.
This in turn will create multiple job and entrepreneurial opportunities for the youth. The aim is to promote digital economy and fin-tech technology enabled development. It is quite evident from the budget that the government is keeping up with the budding technologies like AVGC. With the digital space already booming, there is immense potential for the Indian economy. Staying ahead in the game and making suitable choices as per the requirements of the Indians, will pave the way to economic prosperity