With the waning of global uncertainties, businesses are redoubling investments in IT as they anticipate revenue growth, but their spending patterns are continually shifting. The wait and watch on how the Union Budget 2020 would Fix India’s Macroeconomic Issues? BJP party members have also urged PM to announce steps to revive real estate and other sectors.
Sources said, "The country is facing a serious economic crisis, adding there was no alternative but to raise spending on infrastructure and welfare schemes to boost consumer demand and create jobs. FM Nirmala Sitharaman, who is expected to deliver the budget speech on 1st February 2020, is widely expected to announce stimulus measures for small businesses and non-banking finance companies as a cut in corporate tax rates and rate cuts by the central bank have failed to revive growth.”
While several expectations are being expressed by industry leaders, professionals as well as students, what the government actually takes into consideration can only be determined next week when the budget is issued. This year 2020-21 budget, FM Sitharaman could announce plans to spend over 105 trillion rupees ($1.48 trillion) on infrastructure in the next five years and expand annual spending on railways, roads, renewable energy, water and health sector by up to 20%. An expert says that we will see measures in the budget to boost investments and growth.
Expectations by Arun Nathani, CEO & MD - Cybage Software
“The Government of India has taken steps in the right direction to address the economic downturn by slashing the corporate tax rates benefitting the software industry and companies like Cybage. As part of Budget 2020, a combined step taken towards corporate tax and a roll back of DDT across board will bring in FDI and incentivize the industries to ramp up the capex/opex spend once the demand is back. Rationalizing the GST rates and compliance processes will outgrow the consumption rates. The Indian IT industry will welcome specific incentives like weighted deductions for investing in R&D of AI/BI technology tools to facilitate IT companies, Universities and Research Institutes.”
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