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.
(Arun Nathani is CEO & MD at Cybage Software)
Published 28 January 2020, 16:07 IST