Union Budget 2022 Reactions With Digital Perspective

Here is an Industry feedback from Digital and Crypto-related announcements on Union Budget 2022.

Akhil Handa, Chief Digital Officer, Bank of Baroda says:

“RBI to issue digital rupee in FY23 using blockchain technology is the first step towards formalisation of blockchain technology in banking and finance. CBDC opens up enormous possibilities for innovation. Glad the Government is taking a measured view of the same. Further, from 100 aspirational districts to 75 digital banking units, these government programmes will provide the necessary focus to deliver banking products and services in the remotest areas. The digital economy is growing rapidly. All parts of the economy including commerce, financing, logistics need next-generation solutions. The Government’s focus on training human capital and launching courses in this direction is very welcome. This will also help in reskilling the human capital for the new generation economy." 

Mr Ritesh Khandelwal, Chief Finance Officer, NxtGen Datacenter and Cloud Technologies says: 

“I believe the budget 2022 is a fantastic take and the government has made it simple and effective. They have directly targeted the apex areas, keeping health and infrastructure in focus considering the effects of pandemic. With rapid digitalization, the taxation of cryptocurrency is another landmark achievement in this year’s budget, as previously digital currency has always been in the grey area.

Digital Rupee using Blockchain would also be interesting change in way transaction would take place going forward.

As leaders in the cloud infrastructure space, we at NxtGen Datacenters and Cloud Technologies, are very pleased with the declaration of Datacenters as part of harmonized list of infrastructure. This listing gives us the benefit of working with bank centered facilities. Earlier data centers were under IT/ ITES (IT Enabled Services), but by having them listed as infrastructure providers, we now have access to low-rate loans which is a straight forward benefit to the industry.

The only thing that lacked in this budget was the clarity on government stand and expenditure towards Smart Cities. The government has spent a lot of money and time on this project previously, therefore we were looking forward to get insights on it. Similarly, we were also expecting some clarity in the data localization policy.

All in all, we not only welcome budget 2022 but appreciate it as well.”

Chief Analyst of 5Jewels Research Mr Sumant Parimal says:

Giving his insights on today’s presented union budget in Indian Parliament by Finance Minister, Chief Analyst of 5Jewels Research Mr Sumant Parimal said “When we look at the countries that implementing Digital Currencies through CBDC (Central Bank Digital Currency) route, India has now become a leader amongst large economies to go for Digital Currency with very aggressive time lines, while world’s largest economy U.S. still not zeroed on its digital currency strategies. This early moving act of Indian Govt. in space of Digital Currency is very encouraging for our economy and people of India, and we anticipate that Digital Rupee to take India into league of topmost Digital Economies."

“FinTech. Industry is also going to see new innovations and higher economic value generation due to introduction of CBDC on Blockchain by RBI, and we can expect Indian FinTech. crossing $100B+ in size sooner compared to earlier forecast” Mr Sumant Parimal said further.