Angel fund sops to drive innovation: Kris Gopalakrishnan

The announcement of containing the fiscal deficit at 5.2 per cent of gross domestic product for this year is better than the earlier projection of 5.3 per cent. The budget is clearly geared towards - commitment to fiscal prudence, increased focus on inclusive growth, greater investments in infrastructure, improved agriculture production and boost to MSMEs.

The increased focus on technology spending for e-governance initiatives will help in taking the benefits to the masses and also bring more transparency in public spending. The government's move to allow corporates to include incubators being set up by them in academic institutions to qualify for the prescribed 2 per cent spend on Corporate Social Responsibility initiatives is a step in the right direction. The focus on youth skill development with an increased allocation of Rs 1,000 crore will help in employment generation. Besides, Angel fund incentives etc. will help drive innovation and entrepreneurship, further creating employment opportunities.

The minister mentioned about the Rangachary report being successfully implemented, which is a positive move for the IT industry. The clarifications around GAAR and IT Services related disputes made before the budget were reiterated by the finance minister. The domestic IT industry will also benefit from increased focus by the government on leveraging IT.

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Kris Gopalakrishnan
Co-chairman, Infosys