Telecommunication to financial services: How Budget affects key sectors

Telecommunication

• Spectrum auctions to be conducted in 2022, expected rollout of 5G mobile services within 2022-23

• Contracts for laying optical fibre in villages, remote areas, to be awarded under the Bharatnet project through PPP in 2022-23. Completion expected in 2025.

• Allocation of 5 per cent of annual collections under the USOF to enable affordable broadband and mobile service proliferation in rural and remote areas

• New Scheme for design-led manufacturing to build a strong ecosystem for 5G as part of the PLI Scheme.

• Data Centres to be given Infrastructure Status to boost sector financing

Automotive

• Focus on battery swapping technology with the Battery as a Service policy as an alternative to setting up charging stations in urban areas

• Promoting shift to use of public transport in urban areas, clean tech and governance solutions, special mobility zones with zero fossil-fuel policy, and EV vehicles

• Rs 20,000 crore investment in Infrastructure and 25,000 km expansion of National Highways to create demand for new vehicles in the CV space

• Opening up defence R&D to private players promising for auto component development

Financial Services

• Gain on transfer of virtual digital assets taxable at the rate of 30 percent without any deduction or set off and carry forward of loss. TDS @ 1% introduced on purchase of digital asset above specified threshold

• An International Arbitration Centre to be set up in the GIFT City for timely settlement of disputes under international jurisprudence.  

• "Digital Rupee” to be issued by the Reserve Bank of India starting from 2022-23

• Proposal to set up 75 Digital Banking Units in 75 districts of the country by Scheduled Commercial Banks

Industrial Manufacturing

• Increased emphasis on Gati Shakti Plan for expansion of expressways to connect remote areas of the country with manufacturing hubs and development of cargo terminals

• Announcement of increased Capex will boost the Infrastructure and Manufacturing sector

• Sunset date to commence manufacturing/ production extended to 31.03.2014 to be eligible for lower corporate tax rate of 15%

• Rs 19,500 crore outlay to boost manufacturing of solar modules under the PLI Scheme

Pharma and Life Sciences

• ‘Genomics and Pharmaceuticals’ one of the sunrise opportunities eligible for government support by way of supportive policies, light-touch regulations, facilitative actions to build domestic capacities and promotion of R&D.

• Roll out of National Digital Health Ecosystem - digital registries of health providers and health facilities, unique health identity, consent framework and universal access to health facilities.

• Launch of a ‘National Tele Mental Health Programme’ for better access to quality mental health counselling and care

Disclaimer: The data have been provided by EY. Neither EY nor Business Standard is liable for any action taken on the basis of this data