Union Budget 2022: 23: What The Telecom Sector Can Expect?

The telecom sector has remained resilient in the last 1-year at least, with expectations from the Union Budget 2022-3 running high.

"India is at a point of inflexion in leveraging tech. The last two years has demonstrated the resilience of the sector. While the services led export story continues to be very strong, the tech industry needs to now to deal with the emerging challenges with new operating, and emerging demands of talent and skills.

On the other hand, we have the massive opportunity to address the informal economy, the self-employed, the SMBs and the underserved 'Bharat' through tech and platforms which can create a massive virtuous cycle that can drive real transformation. In addition, 5G in telco, digital media and manufacturing are other big themes that are playing out which will all require support and enabling policy framework to ensure this sector continues to play a pivotal role in India's transformation story", says Vikash Jain, Managing Director and Senior Partner, Boston consulting group

According to a recent report by CareEdge, the following is what the telecom sector can expect in the Union Budget 2022-23.

1) Reduction in license fees

2) Duty exemptions on key telecom equipment

3) Input tax credit against GST paid on telecom towers

4) Reduction in GST rates to reduce the financial burden on TSPs/ passive infrastructure provider

5) Incentive schemes to push Make in India drive for domestic manufacturing

6) Stimulus package for penetration and proliferation of rural areas to achieve the dream of Digital India

7) Smooth and lucrative reforms for 5G rollouts

8) Incentives for promoting new technologies to increase efficiency for the sector