Budget should provide fiscal policy support for IT industry: Harbinger Group

By Vikas Joshi

“I propose Union Budget 2020-21 provide fiscal policy support for the IT industry that is poised for reinventing itself. A key priority in this budget should be to bring back growth and employment. The IT industry is one of the bright spots in an otherwise slowing Indian economy. The industry could be at the cusp of another leap due to strong growth drivers such as digital disruption, AI, blockchain, cybersecurity, and IoT. As the IT industry reinvents itself, it needs pro-growth policy support. Extended SEZ tax benefits, growth-friendly lending norms, and elimination of delays in tax refunds will attract investment and improve liquidity.
I recommend that the Government make the education policy more comprehensive for entry-level job growth. The New Education Policy (NEP) with a focus on technology skill development proposed by the FM in the last budget was a good move. Its objective is to enable students to seamlessly merge into the workforce. This budget needs to address some gaps related to a rapid rise in the gig workforce. This policy if implemented well will incentivize IT companies to become more efficient and possibly create more jobs at the entry-level.”

Vikas Joshi, Founder and CEO of Harbinger Group