Reduction in tariff and separate allocation for startups are some of the other demands of the sector Beaten down by three waves of Covid-19 pandemic, the Indian economy is in a revival phase right now. One industry that immensely contributed to keeping the markets steady during these highly volatile times was tech. The sector, despite the many challenges, averted much of the crisis with constant innovation and agility. Along with encouraging collaboration among individuals, businesses and organisations, the sector has accelerated digitalization across geographies, thus helping other industries to thrive. The industry is now expecting the Indian government to further support it via tax benefits and other relevant measures that could help the acquisition of raw material easier. Here’s a detailed analysis of tech industries expectations from the upcoming Union Budget 2022-23. TCL India Head of Marketing Vijay Kumar Mikkilineni is expecting a reduction in import tariff, as he explains, “This will help us compete with countries like China, Mexico, Thailand and more. In the last two years, the PLI schemes have provided momentum to domestic and international investments, but the investment from the government side for infrastructure building will boost the ‘Make in India’ movement. We have to integrate India into the global supply chain scenario, and to achieve that, tariffs should be equal or less than competitive markets.”   Haptik Co-Founder & CEO Aakrit Vaish lauds government’s efforts towards recognising & promoting the importance of technology in shaping the new India and expects a stronger push to make the country one of the world's preferred AI attractions this year. “Due to the increased push toward digitalization, the usage of AI across industries has increased remarkably. Considering this, we hope this time too, the Finance Minister will put special emphasis on AI and technology for future-ready solutions. We at Haptik.ai are optimistic about the Centre’s vision for a digital-strong Bharat and are looking forward to favourable measures that will boost the tech ecosystem in India."   Reset Tech Founder Karan Talreja calls for separate budget allocation for Indian startups that have ventured into deep technologies to offer holistic solutions to lifestyle diseases. “We probably need focused investment to spread awareness around lifestyle diseases for the betterment of the people. The third wave has already forged in and it has made everyone realise the importance of a robust healthcare ecosystem. Therefore, we expect the government to invest in the evolution of resources that enable the monitoring of lifestyle-related diseases. The process of research and development should continue extensively, and this needs proper financial support from the government.” Hero Vired Founder & CEO Akshay Munjal emphasises the need to consider edtech as a potent tool that can multiply the reach of education. “The pandemic has reaffirmed the significance of digital technologies to sustain the momentum of learning. Hence, the Budget should consider edech as a potent tool that can multiply the reach of education. It should prioritize scaling up allocation to the sector by 7-8%. In addition, rationalizing 18% GST in online education services would go a long way in making e-learning more affordable and realising its benefits. Moreover, there should be a tax rebate on expenses incurred on online learning programs. This is especially important in India as we face a unique 'employability paradox'. Against the backdrop of conducive policies such as the National Education Policy (NEP), strengthening infrastructure ahead of the 5G rollout will ensure equitable access to the highest-quality education to all learners. While NEP 2020 holds a lot of promise, much will hinge on its implementation this year.” Integration Wizards Solutions’ Kunal Kislay is hoping for a better support to the startup ecosystem in the tech space. “Indian startups are the torchbearers for innovation in the country. With the introduction of new schemes and policies as well as changes in the tax structure, 2021 witnessed the proliferation of tech startups. Indian startups also raised larger financing rounds this year compared to previous years. The pace of growth signals the immense potential of the domestic market. The upcoming Budget must equate with the momentum at which these startups are progressing. We expect further developments to ‘Make in India’ and ‘Digital India’ initiatives in order to establish India as a deep-tech hub. As digital adoption and transformation accelerate, Budget 2022 needs to focus on building a strong IT and internet infrastructure as well.” He adds, “On the other hand, the MSME sector has been one of the most vulnerable sectors during the pandemic. The focal point while preparing Budget 2022 should be devising a robust growth map to revive the economy thumped by Covid-19. MSMEs are a key contributor to the country’s GDP and employment. We expect Budget 2022 to provide reforms on reduction in GST and the eagerly-awaited tax relief for small businesses. With the right policy push and resources, the Budget can be a real game-changer for the Indian technology and small business sectors. The government should also take steps to reduce the compliance burden in all aspects - taxes, loans, or audits for both sectors.” Wolken Software CFO Deepak Shenoy talks beyond just the tech industry and shares a comprehensive list of expectations from the upcoming Budget, “Tax collections and revenues have increased while expenditure has been curtailed, leading to a lower fiscal deficit. With this advantage, the government can take the following measures to boost growth and manage fiscal consolidation. Higher outlay on capital expenditure, additional funding options for NIP by continued monetization of public assets, a new strategy for raising rural demand, in place of the three repealed agricultural law, measures to reduce tax litigation and boost compliance, also encouraging continuing MNC investments in mobile phones, EV battery cells, and semiconductors, etc. and increased spending on economically challenged classes impacted by pandemic, and even industries in the hospitality business and healthcare, will go a long way in catalyzing economic progress. Custom duty reduction to offset high inputs costs due to hardening of commodity prices and rationalization of duties to make exports competitive. For employees, WFH allowance to become tax-free, increase in the standard deduction, and increased tax benefits on housing loans for interest payment and principal repayment will generate some relief in these distressing times."