Big thrust to Digital India in Budget
The Special Economic Zones Act will be replaced with a new legislation that will enable the States to become partners in Development of Enterprise and Service Hubs
Bengaluru: Technology has emerged as the most important theme in the Union Budget 2022 with the Finance Minister coming up with various proposals to boost digital ecosystem in the country.
Proposals like e-passports with embedded chips, optical fibre connectivity, incentives to design-led manufacturing of 5G devices, revamp of Special Economic Zone (SEZ) legislation, creation of teleconsultation platform for mental health, and an open digital health platform reflected the focus of the government on leveraging technology in all aspects of governance.
In a significant move, the Budget proposed to come up with new legislation replacing the Special Economic Zone (SEZ) Act. "The Special Economic Zones Act will be replaced with a new legislation that will enable the States to become partners in 'Development of Enterprise and Service Hubs'. This will cover all large existing and new industrial enclaves to optimally utilise available infrastructure and enhance competitiveness of exports," the FM said in the Budget speech. The budget also proposes to provide infrastructure status to data centres.
Analysts and industry experts feel that the proposal should inculcate new operational model of Work from Home (WFH).
"Proposal to come up with new legislation replacing SEZ is timely as much has changed with regard to operational models during this pandemic. The new law should promote setting up IT centres in tier-II & tier-III locations," said Pareekh Jain, Founder of Pareekh Consulting.
Experts also hailed the proposal to give infra status to data centres, which will result in more investment into this sector. "The attribution of "infrastructure status" to the data centres is indeed a welcome move. This announcement will enable concerted efforts on multiple fronts, including 5G rollout, infrastructure development and policy reforms and will help in creation of a wider and stronger digital ecosystem in India," said Sumit Mukhija, CEO of ST Telemedia Global Data Centres India.
Similarly, the budget announced rolling out of e-passports with embedded chips and futuristic technology that will be rolled out in 2022-23. Also, experts welcome the move of giving incentives for design-led 5G devices.
"Budget is progressive with continued thrust on digital India. The e-passports with "Embedded Chip" and Design-Led manufacturing of 5G devices will provide the wind under the sails of recently announced ambitious Semiconductor policy.
