Budget 2023: Focus on job creation

As start-ups and the IT sector could generate more jobs, experts say the upcoming budget should encourage the development of the tech ecosystem.

Published: 30th January 2023 05:26 PM  |   Last Updated: 30th January 2023 05:26 PM   |  A+A-

Jobs, Government jobs

Image used for representational purposes only. (Express Illustrations)

By Express News Service

BENGALURU: With many companies announcing layoffs and citing recession fears, it is expected that the budget will enhance the formal job creation. As start-ups and the IT sector could generate more jobs, experts say the upcoming budget should encourage the development of the tech ecosystem.

"In addition to bringing a wide range of disruptive innovations to market, start-ups will play a critical role in creating jobs throughout India. The government could think about lowering the Minimum Alternate Tax, with a special focus on start-ups conducting R&D. Additionally, the three consecutive years of tax holidays for the deduction could be increased, giving businesses more time to raise money for product development and market research," said Ranjan Kumar, Founder & CEO, Entropik.

He added that it would also be a good move if the government could prioritise encouraging the growth of R&D and innovation centres and relaxing regulations to encourage the listing of tech start-ups in India.

Jagdish Mitra, Chief Strategy Officer & Head of Growth, Tech Mahindra, said in order to maintain the growth trajectory, the need of the hour is to further push the development of the technology ecosystem through a tech-driven, forward-looking budget.

He expects that the budget will focus on initiatives to boost consumer sentiment, improve Ease of Doing Business (EODB), strengthen infrastructure, and promote investment in critical areas including healthcare, network modernisation, skilling & job opportunities, and financial inclusion.

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"The IT sector is poised to play a crucial role in fulfilling the government of India's vision and mission of 'Make in India' for the world, - all it needs is a final push – which the upcoming Budget could grant," he added.

Ananth Narayanan, Founder, Mensa Brands, said that they expect to see more incentives for start-ups to create manufacturing and employment in India. "Taxes on employee stock options should be rationalised and listing processes simplified to encourage start-ups to go public earlier in their growth journey," Narayanan said.

Tech companies have benefited tremendously from special economic zones (SEZ). There are a few changes in SEZ rules that can be made which would help the sector better take advantage of these benefits, said Mukundhan Sreenivasan, CFO, Fulcrum Digital.

Smoother processes for the movement of goods between two SEZ units would be a great aid to firms. Scrapping old computers and laptops, after paying the residual duties in the open market, would be another welcome move.

Last year, the government introduced a comprehensive set of rules and regulations governing work-from-home for SEZ employees. Simplifying the permissions process for remote working would be very helpful for firms based in SEZs," he added.

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