Impact of Budget Proposal on Indian Internet Industry

The Indian Internet Industry is still in its infancy & its present contribution to Overall Indian Economy is negligible. Therefore considering the present scenario the budget proposal put forward by the Ministry is quite but natural.

However my opinion is that the Indian government must be keen in helping & encouraging emerging Industries which have the potential to grow large enough to contribute growth of Indian economy.

You can get a lot of information of how budget was helpful or not helpful to the DOTCOM & Internet Industry on Alootechie & Content Sutra.

Internet Industry is a knowledge intensive industry, only knowledge workers succeed in this industry. Therefore having fringe benefit Tax, MAT, dividend distribution tax looks natural by a developing country, but country must develop a budget plan with the future in prospective. However government encouraging broad band industry would have been a step that is required for development of this industry. Leving taxes on broadband & telecoms industries will only hamper & slow down its growth as the taxes would again be passed to the end user. Telecommunication & broadband is as essential as electricity, which is a lifeline to growth of Internet Industry.

Overall the Indian budget is not very encouraging to the Internet Industry, however this is test for all the new ventures that promises great services, products to the end users. Only those businesses survive that have minimal impact from changes in government & market risks.