Impact of New Union Budget 2021 on the tech industry | Unpleasant for the tech industry? Fully explained

Before moving to the topic Impact of New Union Budget 2021 on the tech industry, some people might not know about what is a budget or union budget or budget for the country. The Union Budget of India likewise alluded to as the Annual Financial Statement in Article 112 of the Constitution of India, is the yearly budget of the Republic of India. The Government clarifies it on the main day of February so it very well may be emerged before the start of the new monetary year in April. Until 2016 it was introduced on the last working day of February by the Finance Minister in Parliament. So this is a quick overview, now let's move forward to our main topic Impact of New Union Budget 2021 on the tech industry.

Some Highlights of New Union Budget 2021

Moving forward to our topic Impact of New Union Budget 2021 on the tech industry. Finance Minister Nirmala Sitharaman has introduced the Union Budget 2021-22 in Parliament.

1. In huge changes to the tax collection measure, Sitharaman declared the rejecting of annual duty for senior residents under specific conditions
2. New standards for the expulsion of twofold tax collection for NRIs, and a decrease in the time of expense appraisals among different measures.
3. New businesses will get an augmentation in their duty occasion for an extra year.
4. In medical care spending, Sitharaman reported an al outspend of around Rs 2 lakh crore on medical services with Rs 35,000 crore on Covid-19 antibody advancement and innoculation.
5. Sitharaman, in her discourse, declared a push to the material business, a climb in a custom obligation on cotton and crude silk, another cess on horticulture improvement.
6. Increased Rs 2.5 per liter on petroleum and Rs 4 for each liter on diesel.
7. Sitharaman likewise declared that an extra 1 crore families will currently profit under the Center's Ujjwala plot.
8. The tax on electronics increases from 10% to 15%.

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Impact of New Union Budget 2021 on the tech industry

We will not extend this topic so much. We would like to finally tell you the Impact of New Union Budget 2021 on the tech industry. The answer is so simple and easy. If you have read our above-mentioned highlights about the new Union Budget that the tax and customs duty on electronics items has been increased from 10% to 15%. This means the phone or electronic gadgets you are going to buy, the price will increase from 5%. Let's take an example here. Suppose, the price of the iPhone 12 is ₹ 99,000 and now due to new union budget the price will increase by 5% i.e. ₹ 4150. Final price ₹ 103950. So, the impact is simple that it would lead to an increase in the prices of electronic devices and their parts. Moving forward to our topic Impact of New Union Budget 2021 on the tech industry.

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The reaction of people from the Tech Industry on New Union Budget 2021

Many known people from the IT or Tech industry has given the reaction to this new union budget. We hope that listing these comments would help you in more understanding the topic Impact of New Union Budget 2021 on the tech industry. We have listed some of them below Just to increase your knowledge on this topic.

1. Mr. Agendra Kumar, President, Esri India, said, "The budget has some certain recommendations for the GIS (Geographic Information System) market. There are a few territories where the hon'ble Finance Minister has reported assignments of assets which will straightforwardly profit by the utilization of GIS."
2. Mr. Yashash Agarwal, CEO, GameStop, said, "FM's proposition of deferring charge assortment on the activity of ESOPs is an inviting move. The current construction hopes to gather burdens too soon making workers not exercise vested offers."
3. Mr. Anil Rai Gupta, CMD, Havells India, said, "The Union Budget 2020 has figured out how to address some main points of interest around foundation spending, charge, reasonable lodging that present a critical business opportunity."
4. Rahul Sharma, MD-India, LogMeIn, said, "Budget 2020 looks encouraging. We are especially enthused about the FM's declaration of consistent conveyance of computerized administrations as a feature of the following flood of advanced upset."

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Final Words

Our Final Words on the Impact of New Union Budget 2021 on the tech industry is very simple. We know that govt of India increases the tax on electronics things but at the same point govt has also attempted to push the digital economy by making more investment in it. There are always some pros and cons to every decision. So, let's not think too deep about it because everything is occurring for some motive.