Budget 2024: Information Technology Sector Update
With the recent budget developments, the IT sector is expected to reach new heights, given the anticipated positive impacts.
Finance Minister Nirmala Sitharaman presented the Modi 3.0 government's Budget today. While there were no specific announcements for the information technology sector, several developments related to technology across various sectors were highlighted. Here are the key points: details:
Support for Promotion of MSMEs: The budget prioritizes MSMEs and labor-intensive manufacturing by introducing a comprehensive package that includes financing, regulatory changes, and technology support to help them grow and compete globally.
Critical Mineral Mission: A Critical Mineral Mission will be established to boost domestic production, recycling, and overseas acquisition of critical minerals. The mission will focus on technology development, creating a skilled workforce, implementing an extended producer responsibility framework, and establishing a suitable financing mechanism.
Integrated Technology Platform for IBC Ecosystem: An Integrated Technology Platform will be developed to enhance outcomes under the Insolvency and Bankruptcy Code (IBC) by ensuring consistency, transparency, timely processing, and improved oversight for all stakeholders.
DSIJ’s 'Tiny Treasure' service recommends researched Small-Cap stocks with Inherent Growth Potential. If this interests you, do download the service details here.
The information technology sector, notably led by Tata Consultancy Services (TCS), a flagship company of the Tata Group, has shown impressive performance.
In the first quarter of FY24, the geographic distribution of market growth showed varying trends across different regions. North America accounted for 52 per cent of the market share, which decreased to 49.5 per cent in Q1 FY25, reflecting a year-on-year CC decline of 1.1 per cent. Latin America held 2 per cent of the market in Q1 FY24, slightly dipping to 1.9 per cent in Q1 FY25, but experienced a CC growth of 6.3 per cent.
India saw a significant increase in its market share, jumping from 4.9 per cent to 7.5 per cent, which corresponds to an impressive CC growth of 61.8 per cent.
The domestic markets have outperformed all other global markets for the company. With the recent budget developments, the IT sector is expected to reach new heights, given the anticipated positive impacts.
Disclaimer: The article is for informational purposes only and not investment advice.