Finance Minister of India, Nirmala Sitharaman, presented the Union budget for the financial year 2022-23 on February 1, 2022. This was her fourth budget presentation after 2019, 2020 & 2021, and the Bharatiya Janata Party-led Modi Government made a host of announcements. In this article, we will be sharing with you the key takeaways regarding the tech & telecom sector in the Union Budget 2022. Here’s how the Budget 2022 will affect the Technology Industry in India.
The Union Finance Minister made several announcements for the all-around development of various sectors. But, when it comes to technology & telecom departments, there were some big revelations. The government finally presented an expected roadmap for the 5G roll-out in India. There were big announcements regarding cryptocurrency and India’s own digital rupee too.
Here’s how the Budget 2022 will affect the Technology Industry in India:
5G Coming To India in 2022: It seems that 5G is finally coming to India this year. The Union Finance Minister announced that the Indian government will conduct a spectrum auction this year. This move will facilitate the roll-out of 5G mobile internet services by private telecom companies like Reliance Jio, Bharti Airtel and Vodafone-Idea during the financial year 2022-23. 5G mobile internet services are expected to give a major boost to the Indian economy.
Flat 30% Tax on Cryptocurrency: Since the past few months, there was so much hue and cry around cryptocurrencies like Bitcoin and other digital assets. While the Indian government has already announced that these digital assets won’t be banned and shall be only regularized. Now, the government has revealed that a flat 30% tax will be charged on these digital virtual assets and the losses in such investments can not be set off against other income.
India’s Digital Rupee Coming in 2022: Finally, the last major takeaway from the Budget 2022 for the technology & telecom sector is the introduction of India’s own Digital Rupee. Finance Minister has announced that the Reserve Bank of India will launch CBDC or Central Bank Digital Currency in the financial year 2022-23. It will be a legal payment tender but is said to be backed by blockchain technology. But, how will it benefit the common people like you and us? Well, only time will tell that!
What are your thoughts on these announcements by the Finance Minister? Do let us know in the comments section below. Also, you can connect with us on our social media platforms, The Unbiased Blog, The Automotive Blog, and Nikhil Chawla, for all things tech and auto!