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Ask an Expert - Information Technology

Sandeep Ladda

Partner & Leader (Technology & E-commerce)

Topic: Information Technology

Amid ?Digital India? and ?Startup India? campaigns, the expectations from the Modi government in the coming Union Budget remain high among information technology sector incumbents ? IT-ITeS, software and e-commerce companies. Continued measures and policies around ?Make in India? and greater support to ?Digital India? initiatives are likely to be the focus area. Providing a fillip to SEZ units by diluting the rigour of minimum alternate tax and dividend distribution tax would be another key area of focus relevant to the IT sector companies. Further liberalisation of foreign direct investment norms for e-commerce and other internet companies, along with easing of certain tax norms, are high on expectation to provide further boost to this high-growth sub-sector.

A challenge for IT is proving education online. People in rural areas are in the greatest need of e-education. What’s your take on this?


Online education provides opportunities to people who might not otherwise have the time for or access to basic and higher education to enhance skill sets. However, issues like access to computers, poor internet connectivity in rural areas, inability for making payments online, etc, create some roadblocks. The government has been emphasising on the need for skilling through online education; massive open online course are also becoming popular. With more availability of affordable mobile handsets with internet connectivity, the number of people from rural areas benefitting from online education will increase rapidly.

How are some firms selling smartphones at unbelievably low prices? The production cost would be much higher...


The promise of cheap smartphones has been around for a while. Smartphones, in today’s times, have seen a steady decline in the price and rapid increase in availability. Previous attempts at drastically reducing prices have not been successful. Companies mostly control production costs by including limited features, using cheaper hardware, using local supply and economies of scale to anticipate demand and control manufacturing cycles. New-age firms like Xiaomi and OnePlus also save costs by using the online medium to reach to the masses, cutting down on the entire distribution/retail network related costs. Some of the handset manufacturers are also contemplating to set up domestic manufacturing units under the make in India campaign, which will enable them to get incentivised by the Government of India with subsidies under the M-SIPS plan.