Interim Budget 2024: What do the telecom and GCC companies expect?

Budget 2024: Experts in the telecom and GCC sectors expect more incentives for manufacturing and subsidies for capital requirements

Finance Minister Nirmala Sitharaman is all set to announce the Interim Budget 2024 on February 1. This will not be a full-fledged budget as India is set to hold general elections later this year. FM Sitharaman has said that it will just be a "vote-on-account", and the industry should not expect big-bang announcements.

However, experts have come forward to put forth their expectations from FM Sitharaman.

Budget 2024: What do telecom and data centre players expect?

Ravi Kunwar, vice president (India & APAC), HMD Global (Nokia Mobile):

Foreseeing an extension or enhancement to the Production Linked Incentive (PLI) policy, we aim to fortify local production and encourage an indigenous components supply chain. The budget's positive impact on operations, particularly in local manufacturing, is anticipated, though precise planning hinges on final announcements. Our wish list emphasises more incentives for local production, encouragement for component manufacturing within India, and support for exports.

TV Ramachandran, president, Broadband India Forum:

We would like to see the Union Budget 2024-25 focus on three important aspects viz.:

1. Facilitate affordable Broadband through Satcom through reasonably modest spectrum fee
2. Budgetary support for the growth of Public Wi-Fi through waiver of duties & levies on equipment and revenues
3. Budgetary support to incentivise Fiber to the Building +Wi-Fi to enable rapid growth in Fixed Broadband, by way of reduction in statutory fees and levies and exemption of GST on service revenues

Bimal Khandelwal, chief financial officer, STT Global Data Centres India:

We are hopeful of incentives to spur domestic manufacturing and infrastructure builds specially tailored for data centres' massive scale and seamless connectivity needs. Attractive capital subsidies for setting up future-ready facilities and easy financing options to offset development costs will unleash growth. We also envision provisions that encourage the adoption of renewable energy to meet data centres' clean power appetites.

Additionally, preferential procurement directives favouring home-grown data centres will provide an upside. With an emphasis on nurturing a cutting-edge domestic data centre industry, India can swiftly go up the technology value chain and cement dominance in delivering digital services globally. Having granted an infrastructure tag has remarkably expedited logistics.

Manoj Nair, head of Global Delivery Centres, Fujitsu:

With Global Capability Centres being a major engine for economic growth, Budget 2024 can play a key role in facilitating growth and sustainable development. GCCs require support and investment for infrastructure and a growth environment. The Budget 2024 can help GCCs further scale and accelerate innovation at a faster rate as India emerges as the world's technology and services hub.