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The budget for the telecom sector to cherish

Budget 2023 is no ordinary budget. Rather, it’s a landmark budget that has the potential to pitchfork India into the big league.

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VoicenData Bureau
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Budget 2023

Budget 2023 is no ordinary budget. Rather, it’s a landmark budget that has the potential to pitchfork India into the big league.

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Unlike in the past when similar exercises at times lacked an ambitious vision, the year’s budget is growth-focused; from telecom to other critical sectors such as Digital India, fintech, and skill development, the finance minister has hit the right buttons.

Considering that communication is the harbinger of change, the emphasis on telecom in this year’s budget holds out a tremendous promise and is likely to give a massive push to both 4G and 5G technologies.

It has been proposed that the government will infuse Rs 52,937 crore capital in loss-making PSU BSNL in the 2023-24 fiscal. The capital will be used for BSNL’s technology upgradation and restructuring.Expectedly, the infusion will spur the launch of BSNL’s 4G mobile services and the testing for locally developed 4G solutions this month.

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The government’s decision to set up 100 labs to develop 5G applications is equally heartening. An instant upswing in telecom equipment stocks immediately after the finance minister’s announcement is a testament to the popular mood. The market has rightfully given the government a big thumbs up.

One can now rightfully conclude that the telecom sector in India stands on the cusp of a revolution and the minister’s announcement has provided it with the necessary wherewithal to ring in a new phase of innovation and global competency.

There have been plenty of other positives in this year’s budget story.

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An unprecedented allocation of Rs 10 trillion for capex will go a long way in supporting demand in the economy, especially for the construction industry where we were witnessing a somewhat softening of demand.

The budget is also high on technology, both in usage as well as leveraging technology, especially digital technology and industry 4.0 technologies.Another positive in the budget is its focus on future industries and AI, while it provides a shot in the arm of the country’s transformative digital journey. The push for drones can only incentivise future industries.

On the individual citizen front, the budget has provided several reasons for the Indians to rejoice.Obviously, the loudest applause came at the fag-end of the Minister’s address, and with good reasons.The announcement of significant tax reductions for the burgeoning middle class can only be sweet music to the ears of the populationthat stands to benefit.

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Overall, it’s a ‘feel great’ budget, despite avoiding the pitfalls of populist grandstanding and uneconomical freebies that the short-sighted often fall for

Doubts and questions will certainly linger on how the ambitious but prudent budget will get funded. There is no room for recklessness and fiscal responsibility should obviously remain at the core of it. So, the larger question remains: where would the government get the funds to fund this budget?

Perhaps, the budget documents will have the answers. For the time being though, it is time to take a bow and applaud the finance minister.

By Dr Jaijit Bhattacharya & Ruben Banerjee

Bhattacharya and Banerjee represent the Centre for Digital Economy Policy Research as its President and Director, respectively.

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