India's digital leap gets further push in Budget 2022; announcement on e-Passport, 75 digital banking units, others reflect so: Experts

From presenting the budget 2022 on a tablet to digital rupee-Budget, 2022 was all about digitisation. In the wake of 'Azadi ka Amrit Mahotsav', the finance minister laid the blueprint for India's sustainable development and proposed a vision for India @100 years. 

Here is the list of some of the important announcements FM Nirmala Sitharaman made to give India the needed push towards digitisation in her budget 2022 speech:

Vision

Mentions digital economy and fintech as one of the visions of the government 

Banking

Setting up of 75 digital bank units in 75 districts to mark 75th independence day.

Digital Payments

Financial support in the previous budget was extended for one year to promote the use of payment platforms. 

Digital University to be set up 

- e-Vidya Channel

- Skill development

- Desh-stack e-portal for skill enhancement

Healthcare

National Digital Health Mission, digitisation of health records

 
Post Office

1.5 lakh post offices to be included in the core banking network, facilitate online fund transfer in post office accounts

e-passport

e-passport with an embedded chip in 2022-23 

Digitisation of Land records

- Unique land parcel identification number for online maintenance of land records and one nation one registration 

- Promotion to animation, visual effects, gaming and comic sector

- To introduce supportive policies for AI etc. 

CBDC

Central bank digital currency by the name of Digital rupee 

Procurement

Central Ministries will procure only using an online e-bill system.

We talked to experts to know what they think about the budget's focus towards the country's digitisation:

Technological innovations for greater national income

Pamarty Venkataramana, an international corporate lawyer and member of the Supreme Court of India bar association, said, "I think India is emerging as the world's fastest digitisation country and expected to lead in the world. Digitalisation is the key and technological innovations are the route to ensure India leapfrogs firstly out of pandemic blues and eventually into the five trillion dollars bracket of large economies."

"As a result, a larger portion of profits earned may be utilised for social infrastructure building activities such as building a more robust Healthcare System. Government Bonds for such developmental works can become a more attractive Investment avenue," Venkataramana explained with respect to budget on the healthcare sector.

Further commenting on the budget 2022, he said, "Technological innovations are the key to higher productivity and greater national income. Data centre investment and digital infra development are spheres that have rightly received special attention in the Budget." 

"The animation, visual effects, gaming, and comic (AVGC) sector offers immense potential to employ youth. An AVGC promotion Task Force with all stakeholders will be set-up to recommend ways to realise this and build domestic capacity for serving our markets and the global demand. It is as important to legislate on AVGC as it is about the anticipated Rupee digital currency." Venkataramana said.

"Filip given by way of the corporate tax rate cut will certainly have a positive, ripple effect on the manufacturing sector, including SMEs," he added.

 
Budget 2022 rightly focused on mental health & digitalisation

Gautam Khanna, Chair, FICCI Health Services Committee & CEO of P D Hinduja Hospital said, "Union Budget 2022 has rightly focused on mental health & digitalisation. We would have liked incentives for infrastructural expansions, research & upskilling of workforce. An incentive to promote Preventive healthcare would have helped our country fight the menace of NCDs."

 
IFSC-Gift City

Sunil Sanghai, Chairman, FICCI's National Committee on Capital Markets, said, "The steps to launch a Central Bank Digital Currency, setting up of an international arbitration centre at IFSC-Gift City and setting up of a committee to review the regulations for venture capital and private equity funds are very progressive and in the right direction."

Budget aims to transform India into a digital powerhouse

Daisy Chittilapilly, Co-Chair, AI and Digital Transformation Committee, FICCI, said, "The government has long demonstrated its intent to accelerate tech-enabled development in critical areas of the economy and transform India into a digital powerhouse. Budget 2022 indicates a tremendous opportunity for India's people and businesses, with the government boosting long-term investments, new job creation, and catalysing programs like BharatNet to bring the benefits of digitisation to every citizen. FICCI is excited to continue to partner with the government and explore new possibilities of technology that can help the nation leapfrog into its digital future."