Budget 2019: A boost to digital economy and Infrastructure

Sanjeev Agarwal
The budget has given a solid thrust on enhancing the digital economy and infrastructure growth.

The proposal to improve the skill-sets of the country’s youth in areas such as Artificial Intelligence (AI), Big Data, and robotics is the need of the hour and will help in reducing the skills crunch in these areas. This will give significant boost to AI-led research and development in the country.

A national transport card for universal travel, waiver of MDR charges on cashless payment will give a strong boost towards driving the digital economy. The Centre’s plans to take Internet connectivity to every panchayat of the country, through its ambitious Bharat Net program, will ensure the entire country benefits from the digital revolution.

The government’s announcement of investing Rs 100 lakh crore on infrastructure is commendable. Its massive push to all forms of physical connectivity through Pradhan Mantri Gram Sadak Yojana, Industrial corridors, dedicated freight corridors, metro rail, Bharatmala, Sagarmala, Jal Marg Vikas, and UDAN schemes will have a positive impact on economic growth of the country and will facilitate in bridging the rural-urban divide.

The approval of Rs 10,000 crore to encourage faster adoption of electric vehicles, tax deduction of Rs 1.5 lakh on loans to buy e-vehicles, lowering of GST rates from 12 percent to 5 percent and interest subvention for upto Rs 2.5 lakh on the purchase of new electric vehicles will help in promoting a sustainable economy and easing government’s renewable energy targets. Proposals to ease FDI norms will drive more foreign investments in the country.

We at Protiviti in India are keen to assist the government towards reaching the target of $5 trillion economy in the next few years.

The author is CEO - Protiviti Member Firm for India. Protiviti is a US-based global consultancy.