Investments and initiatives toward digital transformation have significantly accelerated in the post-pandemic world. With the Union Budget 2022-23, the government should bring policies and reforms to support enterprises in their digital journeys and facilitate their growth.
Initiatives like long-term work-from-home policies, simplification of the GST regime, and streamlining labour laws can facilitate a less-ambiguous and conducive business environment. Also, there is an urgent need to simplify the foreign withholding tax structure to ensure that full set-off is available to IT companies operating in multiple countries.
Special Economic Zones (SEZ) play an instrumental role in driving the Indian IT sector’s growth. Improvements in SEZ-related policies and their extension will help strengthen the sector further.
The IT sector is indisputably an integral part of India’s growth story. However, the government should stay mindful of the recent disruptions in the sector caused by the pandemic and ongoing global business uncertainty. The upcoming Union Budget is expected to bring conducive policy initiatives to incentivize the IT sector and accelerate its growth.
