Budget 2014: Does It Address The Pain Points Of IT Decision Makers?

indian parliament

IT Report Card To The NDA Government – Evaluating The Union Budget 2014-15

As a follow-up to our previous blog where Greyhound Research highlighted pain points IT decision makers are facing in India, below is an IT report card for the NDA Government post the announcements in Union Budget 2014-15. This report card assesses various schemes and initiatives announced by the new government and the expected outcomes for the IT sector.

While a can of worms might be in the offing when the government rolls out more details, the budget announcement has only marginally uplifted sentiments in the technology sector. With a mixed bag of hits and misses and little definitive guidance, IT buyers and providers are still left shooting in the dark. Does this ring worry bells for the sector? Read on.

The NDA Government has failed to address long pending issues hurting CIOs. In a recent blog Greyhound Research highlighted issues that have long troubled IT buyers. These issues had failed to garner attention from the UPA Government in the previous budget as well. Greyhound Research was expecting these to be addressed this time around, however little has been done by the NDA government. This has been explained in detail in the report card below.


The budget did not offer clarity on announcements from previous year. The need for accountability, transparency and effective governance are key reasons why the NDA Government came to power with clear majority. But the announcements made in the Union Budget 2014-15 did little to clarify the government’s stand, vision and next steps on the announcements made in the previous budget by the UPA government. Greyhound Research highlighted some of these in a blog last year where we raised serious concerns on the effectiveness and outcomes from some of these policies. For more details on how the NDA Government tackled each of these announcements, refer to the report card below.


Union Budget 2014-15 – definitive opportunities for IT vendors, but big on guidance and low on details. While the NDA Government has done well to offer broad details on some of the key programs it wishes to pursue during its tenure, very few details have been offered. Clearly, a lot of critical announcements made in the budget have been aspirational in nature with very little or no real outcomes in the near future. Having said that, the new Finance Minister has surely understood the need to bring the Indian economy back to a double-digit growth figure and focus on sectors like Small and Medium Enterprises (SMEs), Insurance, Real Estate and Defence. While Greyhound Research expects these initiatives to create fresh demand for IT, not all initiatives will benefit IT vendors equally. The report card below highlights some of the key announcements and the resultant outcome for IT vendors.


The author is the chief analyst and CEO of Greyhound Research, an independent IT & Telecom Research & Advisory firm.

Read the Union Budget 2014 analysis from CXOtoday here:

Budget 2014: Key Highlights For Indian IT: In the first Union Budget presented by the Modi government, Finance Minister Arun Jaitley announced some key measures that would impact the Indian IT industry.

Budget 2014: IT Industry Reacts With Cautious Optimism: While the Union Budget 2014 has announced some significant measures to boost the technology sector, a lot depends on the actual implementation of these plans, say experts in the IT industry.  

FM’s Budget Looks Growth-Oriented: IT Bodies: The keenly awaited Union Budget 2014 was welcomed by the industry majors like MAIT, CII and Nasscom. The decision to reduce customs on IT/telecom products, bridging the digital divide and setting up of smart cities were especially applauded by the industry bodies.

Union Budget 2014-15 To Take The Digital Route:  Stakeholders in the IT and telecom sectors are expecting from Finance Minister Arun Jaitley should settle various taxation issues and invite fresh investment, thereby bringing a much-needed recovery in the economy.

Budget 2014: How Govt Can Use ICT For Inclusive Growth: The Budget should not just help set the tone for a futuristic policy framework, but should also enable the government to formally start addressing some of the critical issues facing the economy, say experts.