ICT Industry’s Reaction on Union Budget 2020-21

ICT Industry’s Reaction on Union Budget 2020-21

As India is embracing digital transformation in a very good way, the role of technology players increases many fold. The whole industry was very keen to know government’s announcement for technology sector.

“The Scheme To Boost The Intelligent Electronics & Semiconductor Ecosystem By The Assures More Investment”

“The vision for the semiconductor and electronics industry in the budget speech is encouraging. We feel this interim budget by Finance Minister is progressive and inclusive. It focuses on leveraging new technologies to build countrywide digital infrastructure, skill-building and drives growth by providing cost benefits for electronics manufacturing in India. The scheme to boost the intelligent electronics & semiconductor ecosystem by the manufacturing of mobile phones, semiconductor packaging and electronic equipment, assures more investment. We foresee the sustained incentives by the government to promote local manufacturing will fulfil local demand and also enable India to become an export hub for electronics.” Stated Jitendra Chaddah, Chairman, IESA

"FM's Proposal Of Delaying Tax Collection On The Exercise Of ESOPs Is A Welcome Move”

Yashash Agarwal, CEO, Gamezop said "FM's proposal of delaying tax collection on the exercise of ESOPs is a welcome move. The current structure looks to collect taxes too early causing employees to not exercise vested shares. Easing direct taxation for eligible startups will encourage businesses to chase the right metrics and not just growth at the by bleeding money. The definition of "eligible startups" must be broadened to bring more companies in this fold."   

“The Burgeoning Digital Infrastructure Of India Needs A Strong Cybersecurity Framework To Support It”

Rakesh Kharwal, Managing Director, India/South Asia & ASEAN, Cyberbit commented “The government has highlighted the role of digital technologies like analytics, IoT, AI, and quantum technology during this Budget Session. The burgeoning digital infrastructure of India needs a strong cybersecurity framework to support it. Now, since it has allocated Rs. 99,300 crores to the education sector and Rs. 3,000 crores for skill development itself, a good way to realize India's digital vision could be by working on the cybersecurity front from the very beginning. The government may want to cover its tech initiatives with avant-garde simulation-based cybersecurity training platforms like Cyber Range for proposed cyber forensic university and Skill India campaign. This will help India in generating millions of jobs for the youth and also strengthening national security.”

“We Are Enthused About The Announcement Of Seamless Delivery Of Digital Services”

Rahul Sharma, MD-India, LogMeIn stated “Budget 2020 looks very promising. We are particularly enthused about the FM’s announcement of seamless delivery of digital services as part of the next wave of digital revolution. AI, ML, Analytics, IoT, Robotics are making giant inroads in India, as was observed in the budget. The policy being introduced to build data centre parks throughout the country will help enhance the digital infrastructure to a significant extent. We are looking forward to the next phase of Digital India which will be a big growth driver for businesses and individuals alike.”  

“We Are Delighted To Witness Proposals Of Setting Up Of Data Centre Parks Across The Country”

Aakrit Vaish, CEO, Haptik commented “As digitization and advanced technologies continue to gain momentum, we welcome the Budget 2020 announcements. Once again, the Finance Minister’s emphasis on machine learning, robotics, AI and IoT will help boost India’s digital journey. A significant proportion from the allocation of INR 3000cr for skill development should focus on these cutting-edge technologies. We are also delighted to witness proposals such as the linking of 100,000 Gram Panchayats through the enhancement of Bharat Net and setting up of data centre parks across the country. As national systems become more sophisticated and our workforce is equipped with the relevant skills, we will truly see the next wave of digital revolution, with greater scope for large-scale indigenous innovation.”

“The Governments Initiative To Enable Digital Connectivity In Gram Panchayats Holds Brilliant Potential”

Suganthi Shivkumar, Managing Director, ASEAN, India & Korea at Qlik commented “We appreciate the government’s decision in the 2020 Budget to dedicate the necessary funds and resources towards developing revolutionary and breakthrough technologies such as ML, robotics and AI to further the skills that will prepare us for the next wave and accelerate India’s journey towards becoming a digital giant. With data equated as the new oil, the government’s plan of building cutting-edge data parks across the country is equally important. Furthermore, the governments initiative of allocating Rs 6000 crores to enable unabridged digital connectivity in over 100,000 Gram Panchayats through the Fiber to Home BharatNet scheme holds brilliant potential in securing India’s passage towards achieving tech-empowerment for the remote sector.”

“It’s Very Encouraging To See That Indian Government Regards Entrepreneurship As “Strength Of India”

Piyush Kumar, Founder & CEO, Rooter said “It’s very encouraging to see that Indian Government regards entrepreneurship as “strength of India”. Start-ups can not only get a lot of foreign investment in India but also create thousands of jobs. The investment clearance and advisory cell for entrepreneurs is a great step to encourage new entrepreneurs and provide assistance. Moreover, the seed fund to support early-stage start-ups will help them to create quality market fit product before approaching VCs.” 

“Deferring ESOPs for Start-Up Employees Is An Affirmative Move”

Akash Gupta, Founder and CEO, Zypp stated “The Union Budget 2020 paints an affirmative picture for the future. We are glad that the Finance Minister has emphasised on improving the air quality, citing that the matter of clean air is a matter of concern in large cities that have a population of over 1 million. To the same end, we believe that EV-powered everyday commuting solutions offered by Zypp through Electric Scooters and Logistics solutions will play a crucial role in times to come. The budget announcement further comprises positive news for India’s fast-growing start-ups. The proposal to set-up investment clearance cell for entrepreneurs along with assistance in funding would definitely prove to be extremely beneficial. Furthermore, increasing the threshold of start-ups eligible for tax deduction from an annual turnover of 25Cr to now up to 100Cr is another welcomed move. The FM has also increased the window for such start-ups to claim a tax deduction for 3 years out of 10 years now as compared to 7 years previously. Owing to the same, the start-ups will find it easier to take risks and not be burdened financially while pursuing trailblazing innovations. Deferring ESOPs for start-up employees is another affirmative move, giving employees of start-ups to postpone taxation for 5 years or whenever they exit the venture, whichever is earlier.”

“The Government Has Announced A Number Of Measures For The Education Sector”

Abhishek Kumar, Regional Director, Onvu Tech said “This year's budget includes a number of positive reforms for the surveillance and security agency. The government has announced the launch of Police Academy and Forensic Sciences, 5 more smart cities, 9,000 KMs of economic corridor, enhancement of tourist attractions, and improved business landscape for MSMEs alongside others. Security and Surveillance infrastructure is a core element of all of these reforms and will give a strong stimulus to the segment. The government has announced a number of measures for the education sector with a whopping Rs. 99,300 crore budget. With it, courses will go online soon and Top-100 NIRF Ranked Institutes start offering them. The government has also announced positive reforms including Asian-African 'Study in India' program, establishment of Police Academy and Forensic Science, and integration of medical institutes with dist. hospitals. Rs. 3000 crores have further been allocated for Skill Development. Perhaps, all of these reforms will go a long way by including video-analytics-based EdTech solutions to them as well."  

 

“We Appreciate The Government’s Emphasis On Promoting Cutting-Edge Technologies”

Raman Singh, Chief revenue officer, Cloud Connect commented “At CloudConnect, we wholeheartedly believe that the progress of the country lies in creating more opportunities for start-up owners. Thus, we duly welcome the decisions taken by FM Nirmala Sitharaman through the Union Budget 2020. She has rightly mentioned that entrepreneurship is the true spirit of India and has been its strength. We appreciate the government’s emphasis on promoting cutting-edge technologies such as machine learning, robotics and AI in India. The commitment to tech-advancement to support entrepreneurship is evident in the government’s decision of building data center parks throughout the country and proposing INR 8,000Cr for over 5 years for the National Mission of Quantum Technology and Application. Finally, the setting up of investment clearance cells and portals for entrepreneurs in order to assist them in funding will give a significant boost to entrepreneurship in India.”

“It Is Good To See The Focus On Digital Governance Pushing For Digital Revolution In A Big Way”

“There was lot more we were expecting from this budget on measures to revive the auto industry, increase in tax soaps, etc but it is good to see the focus on digital governance pushing for digital revolution in a big way. A viability gap funding window will be set up to set up hospitals in PPP mode and in its first phase those districts will be covered where presently there are no Ayushman empanelled hospitals.  Machine learning and AI in Ayushman Bharat scheme shall enable better designed disease preventive regime and create better healthcare facilities”. “Recapitalization of INR 6950 crores of PSU Insurance companies will help in terms of improving their solvency metrics and is a step towards merger of the PSU general insurers.” Stated Parimal Heda, Chief Investment Officer, Digit Insurance.

“The Allocation Of INR 3000 Crore For Skills Development Will Help Bridge Technological Skills Gap”

Ashwin Kumar, Director, Data Centre and Cloud Operations, Linode India commented "With a focus on technology and innovation, Budget 2020 sets the foundation for India’s future. The allocation of INR 3000 crore for skills development will help bridge a sizable technological skills gap in the country and enhance the global competitiveness of small and mid-size businesses throughout the country, which today employ 40 percent of India's total workforce and contribute nearly 30 percent to the India’s economy. We welcome all efforts that positively drive the key levers of modern business — innovation, growth and efficiency."

“Government Has Announced Numerous Benefits For All The Key Stakeholders In The Startup Space”

Hemal Gathani, Co-founder of Zeux Innovation commented “Two messages stand out from today’s Union Budget address for companies like us. One, the commitment being demonstrated by the Government to emerging technologies and initiatives being taken to improve the ecosystem – be it in terms of setting knowledge or technology clusters or announcing a National Mission on Quantum Technologies. Having relocated from US to start a company here, we are thrilled with the government’s resolve on this issue. Two, trying to do their bit in creating more stable start-ups – by resolving issues such as tax relaxation on ESOPs. Although much more is still to be done jumpstart the economy, but steps such as these will surely help stem the fall and lay new ground for growth. Government is walking the talk to make India a leading startup hub in the world. Government has announced numerous benefits for all the key stakeholders in the startup space – Employees, Investors & Promoters etc. This will go a long way to make India the preferred destination for startups.”

"The Budget Is Overall Encouraging For The Industry”

Amitansu Satpathy, Managing Director, Best Power Equipments said "The budget is overall encouraging for the industry. We expect a lot of initiatives announced by Hon. Finance Minister. Once implemented will definitely boost economic growth". 

“Rs. 8000 Crore For National Mission On Quantum Technologies Will Ensure India Remains A Key Technology Player”

KT Prasad, Country Sales Director, Zendesk India said "I believe the Union Budget 2020 will have a positive impact on helping further drive Indian businesses, given the current local and international market conditions. The startup sector will benefit greatly from the tax breaks, and the move to tax ESOPs on liquidation will encourage the retention of talent in the sector, poising it for continued growth on the global stage. We are happy to see the push for adopting AI and ML particularly in the healthcare sector, which will help boost access to services as well as quality of care for more people, and further infuse growth in the economy. It is also interesting to see that the government has invested Rs. 8000 crore to the National Mission on Quantum Technologies, which will ensure India remains a key global technology player. This move aligns and propels India into the future with an eye on data, communications, cybersecurity, and technology, and from Zendesk's position as a global Saas company, this is particularly encouraging." 

“The Continued Emphasis On Technology Will Help In The Coming Years To Ensure Ease Of Business”

“This is a very strong Budget in terms of focus on fundamentals. It has focused on agriculture, simplifying tax structures, infrastructure, and on self-reliance for the long term. The Hon’ FM has tried to create a level playing field by going to markets for fundraising rather than through the tax route. The continued emphasis on technology will help in the coming years to ensure ease of business, transparency and better compliances by all stakeholders. With tax rates reduced on the existing tax slabs, consumers will have more to spend. We are happy that e-commerce was today defined for the first time in the Budget and we look forward to policy initiatives on new-age business formats. With tax-deferred on ESOP and early-stage fund for start-ups, we feel this Government has good intentions to ensure that technology and knowledge-based entrepreneurship is encouraged in our country,” says Rajan Sharma, Founder & CEO, excess2sell.com.

I Welcome The Government’s Initiative To Open Data Center Parks Across The Country”

Kunal Jain, Founder & CEO, Analytics Vidhya said “I welcome the Government’s initiative to open Data Center Parks across the country as the finance minister has rightly said that ‘Data is the New Oil’. This will lead to the digitisation of the rural areas while providing various employment opportunities to the people across the country. Also, I would appreciate the use of AI & ML by the government in Aayushman Bharat Scheme to improve the healthcare services and eradicate tuberculosis in India by 2025.” 

“The 2020 union budget has made big announcements in lieu with Prime Minister's Vision”

"The first budget of the new decade presented by Finance Minister Nirmala Sitharaman gives an outline of a new and confident India. It is a promising, proactive and progressive budget which will make India healthy and wealthy in the coming year. India will have the largest working-age population in the world by 2030 which is why more and more people need to have a good education so that they can contribute positively to the growth of the country. The 2020 union budget has made big announcements in lieu with Prime Minister's Vision which will play a big role in transforming India’s educational landscape. The government has announced that 8000 crore rupees will be provided for quantum technologies and applications which will help students learning about quantum computing and secure applications. To groom young students urban local bodies across the country will provide internships to young engineers for a period of up to one year. To ensure that education reaches everyone and is accessible anywhere anytime degree level full-fledged online courses will be offered by institutes in the top 100 of the National Institutional Ranking Framework. To encourage students of African and Asian countries who wish to study in India, the IND-SAT exam will be held which will help India become a global hub of education. Moreover, viability gap funding will be used to set up medical colleges which will be attached to district hospitals in Public-Private Partnership (PPP) model which will help students gain maximum exposure and experience early on in their careers", said Rachit Jain, CEO & Founder, Youth4Work.

“A Good Thing About The #Budget2020 Is That They Have Kept Startups In Mind”

“A good thing about the #budget2020 is that they have kept StartUps in mind w.r.t. Income tax deduction, deferred taxation on ESOPs and all other policies which are adopted. However, that said, we as an industry are jaded by the past - there have been issues when it comes to implementation and have been at the receiving end of the IT Department courtesy misinformation of angel tax, for example. Here’s hoping that this year will be different and that there will be no friction whilst implementing and executing the proposed policies.” Stated Mr Ankit Prasad, Founder and CEO, Bobble AI

 

“We Welcome The Pragmatic Approach Of Allowing The Private Sector To Build Data Center Parks”

Pearl Tewari, Vice President, Kapture CRM said “It's good to see this budget emphasizing on the Indian spirit of entrepreneurship and aiming towards a digital revolution. We also welcome the pragmatic approach of allowing the private sector to build data center parks in the country and its new policy for integrated information portal.”

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