In politics, it takes a great deal of maturity and courage to respect the body of work of a predecessor. In that sense, the NDA government’s budget is reminiscent of Nelson Mandela’s ‘rainbow nation’ philosophy, which adopted continuity in the face of volatile relations. This is a landmark practice for a government.
 
The tone of the budget was, in my opinion, smart to wise. While carrying on some of the major initiatives of the previous regime, it was able to enhance prospects for key aspects of Indian industry.
 
The budget signaled to a wide array of segments, with a particular and necessary focus on major infrastructure, as well as relatively low investment industries. The 15 per cent tax exemption to industries from the Rs 25 crore range onwards will surely create a conducive environment for startups. The finance minister’s special mention of semi-conductor wafers in this context is significant.
 
I call this budget 360 because of its all-round focus. While on the one hand, it catered to industry, on the other, the attention to detail was encouraging. For instance, special allocations for Braille for the visually impaired shows a human touch. In light of recent events and a positive change in the country’s sensibilities, the focus on women’s safety is welcome. The budget’s allocation to Jammu & Kashmir and the north east is also commendable.
 
The interlinking of rivers was always a fascinating concept. One imagines a luxury ‘Ganga cruise’ along the majestic river could be a distinct possibility.
 
The IT and ITeS sector will benefit from the clarity in tax pricing and positive lack of major surprises in the budget. The ‘financial stability’ promised by the finance minister will grow from the predictability and continuity of this budget.
 
The industry as such is in a reasonably good place now. The national policy on information technology (NPIT) envisages revenues expanding from $100 billion in 2011-12 to $300 billion by 2020 and exports from $69 billion in 2011-12 to $200 billion by 2020.

 
The sector also remains one of the biggest employment generators, with direct employment in the IT services and business process outsourcing (BPO)/ITeS segment projected to grow by 5.6 per cent, reaching 3.1 million in 2013-14 with over 166,000 jobs being added during the year (of which 30 per cent are for women). Indirect job creation is projected at 10 million. This growth, however, could do with a more ambitious vision. The field is ripe for a phenomenon like Silicon Valley in India.
 
It is now up to the government to sustain this momentum by creating a conducive ecosystem. An occasional shot in the arm will not be enough. The government ought to recognise the need to establish efficient systems for the distribution of high quality technology products developed in India.
 
Even as the technology services model continues to draw investment, the IT industry has made a clear entry into the technology products arena as well. The $100 billion knowledge capital, riding on the collective intellect of three million minds, is behind this shift. The strong trend of technology startups must be promoted in India as well.
 
In conclusion, this iteration of the budget, though relatively unremarkable financially, is a strong statement for governance, which is not unlike a relay race. Carrying on the baton is as important as running ahead.

SOURCE: My Digitalfc.com