Union Budget for 2017-18 was announced by Mr. Arun Jaitley, Finance Minister on 1st February 2017. This time budget was more focused on Farmers, Rural Development and infrastructure. The government also focused on digital payment to push cashless economy in India.
Yet there is no any direct big majors announced for ICT industry but this was well balanced budget for the growth of overall Indian economy. We got reactions from all key industry players, which we had listed to share their opinion on budget announcement.
“We Especially Appreciate Computer Emergency Response Team to be Setup”
Mr. Amit Nath, Head of Asia Pacific - Corporate Business, F-Secure
The Union Budget 2017 is at par with our expectations. We welcome the move by the Financial Minister meant to strengthen the digital infrastructure in rural India, by allocating INR 10,000 Cr for Bharat Net Project. The same is slated to empower over 150,000 gram panchayats with high speed internet and Wi-Fi hotspots. While this sets the right impetus for rural India to come online, the government has further taken the steps necessary to ensure optimum level of cybersecurity. We especially appreciate the Computer Emergency Response Team to be setup post the budget announcement and dedicatedly monitor cyber hacks, ensuring the security and integrity of online data. The synergy created by these announcements, along with the efforts of cyber security solutions is going to further inspire new users to come online, aiding India’s transition to a digital economy.
“The Focus on MSME is Welcome Given its Ability to Generate Employment”
Mr. Venkatesh P, Director- Platforms and Solutions, Maveric Systems
There is a credible shift in terms of social spend and an acknowledgement of things that need roll back like MAT. The focus on MSME is welcome given its ability to generate employment across the nation. It is always better to look at the focus of the budget- it lists ten themes, six of which relates to social sector; nothing on spurring economic growth or promoting investment; it looks like the emphasis is on the social development than economic growth, but unfortunately it is an inference than a clear statement of the budget.
“This is Not a Populist Budget, But a Budget Which Caters Sensibly to the Poor”
Mr. Anil Valluri, President - NetApp India & SAARC.
The Budget 2017-18 theme is to Transform, Energise and Clean India and every citizen to my mind will agree with this theme. The focus on both physical and digital infrastructure build out continues and there are clear milestones stated in the budget for instance that 150,000 Gram Panchayats will have Broadband connectivity by end of 2017-18 and these will be used to provide tele medicine & education is laudable. This is not a populist budget, but a budget which caters sensibly to the poor, youth, farmers, villages and infrastructure to propel India further every year. Demonetization was a bold move and so is the move to bring in transparency in electoral funding as announced in this budget.” Said Anil Valluri, President, NetApp India & SAARC.
“It Was a Well-Balanced Budget”
Mr. Suman Reddy, MD, Pegasystems India
Overall it was a well-balanced budget, we need to keep in the mind some of the macro-situations the FM mentioned in terms of US interest rates going up and Trump’s recent announcement. As a country we have to look inward in order transform into a balanced and digital economy. Similarly, companies across sectors need to start looking within the country to increase revenue and up employment opportunities.The budget reflects the government’s strong stance to tackle our tax non-compliant society and eliminate black money. The government’s approach to provide relief and promote digital economy among individuals as well as companies through lowering of tax-slabs, provision of exemptions, reduction of customs duty, retention of MAT and capping of cash transactions; is a definite change we can all look forward to. However, from start-up point of view for players like us who engage with entrepreneurs, we were expecting a lot more tax incentives and provisions for easier setting-up or closure of businesses. Given that India is expected to have 20,000 start-ups in the three next years, effective policies are critical to simulate growth. We hope to have more clarity once the budget is discussed in detail in the coming days.
“We Welcome the Duty Exemptions on Iris Enabled PoS Devices”
Mr. Vivek Khandelwal, Vice President, Delta ID
We welcome the duty exemptions on iris enabled PoS devices, and are truly excited about the strong emphasis the government has placed on Aadhaar enabled payment initiatives. With all the foundations with respect to standards, certifications, and availability of devices, already in place, this impetus will further accelerate the adoption and integration of Aadhaar in programs and processes that touch the everyday lives of the people of India.
“Exemptions for Income Tax & Push towards Digital Payments Will Increase Buying Capacity”
Mr. Atul Rai, CEO and Co-founder, Staqu
The Union Budget 2017 doesn't provide any direct benefits to startups this year. Besides, the tax exemptions from capital gain are rather difficult to meet, at least in the early stage of 3-5 years for a startup. However, the newly announced exemptions for income tax of common people and well-rounded push towards digital payments will ultimately increase the buying capacity, along with mobile phone utility. These institutional changes, I believe, will push towards the growth of new age digital startups, albeit indirectly.
“The Move to Shift Housing Into Infrastructure is going to enable Debt & Equity Financing”
Mr. Manavjeet Singh, Founder & CEO, Rubique
We appreciate the announcements made under the Union Budget 2017. We feel the budget is well rounded, covering important cores of the Indian economy, including SMEs, Rural India, Digitalization and the common, middle class citizens of India.The budget does include certain good news for the startups. The increased period for profit linked deduction for three years out of 7 years as against five years is welcome, as start-ups are not expected to make profits for the first few years. The need was for a 10-year period, but extension to 7 years is nevertheless welcome. Furthermore, the housing and personal finance sector has received a major boost from the announcements by the Financial Minister. The move to shift housing into infrastructure is going to enable debt and equity financing, further bringing down the costs and inspiring users to opt for the same. National housing bank will refinance loans worth Rs 20,000 cr. This is expected to increase Balance transfers especially in affordable housing segment due to strong focus on PMAY.
“We Will Have to See How Different this Team Will be From CERT-IN”
Mr. Pradipto Chakrabarty, Regional Director, CompTIA
We already have a Computer Emergency Response Team (Cert-in) which reports to the ministry of electronics and IT. We will have to see how different this team will be from CERT-IN. In my opinion one of the key roles of an ideal Computer Emergency Response Team should be complete focus on threat / vulnerability analytics to prevent security lapses through a team of highly trained professionals on information security defense tactics. Also, it should be a nodal agency for a common repository of breach events so that the entire ecosystem can learn from the best practices. The objective of this team (either new or the existing organization) will be all about analytics and defense.
“Focus on Digital Payments Will Lead to Revolutionary Transformation in Indians' Payment Habits”
Mr. Bipin Preet Singh, Founder & CEO, MobiKwik.
Big digital push is the thrust of the Budget and is a very welcome and the right move for the future growth of the economy. I commend this progressive budget that invests heavily in technology and digitization. The focus on digital payments will lead to revolutionary transformation in Indians' payment habits. Digital payments will be the new normal in 2017 and we are very excited about this. As we become more digital, India will see new taxpayers and better transparency in incomes.
Upgrading digital infrastructure to support cashless transactions in rural and semi urban areas will encourage more merchants and consumers to transact on non-cash and online platforms. However, we feel that the government must have also considered promoting STARTUPS in the digital payments and digital security areas. Secure digital transactions is the only way to sustain India's habit of cashless payments.The budget also promoted the startup ecosystem with tax benefits. Reduction in the corporate tax for Medium and Small Scale Enterprises (MSMEs) to 25% will also go a long way in attracting more investment in the country.
“Affordable Housing Projects can be completed over Five years instead of Three years earlier to avail of 80IB”
Mr. Getamber Anand, President, CREDAI National
We must appreciate the fact that the government is very serious on the mission of ‘Housing for All’ and in the same light we have seen some extremely positive announcements in the budget today.Affordable Housing has been declared ‘Infrastructure’ with all its associated benefits. Additional refinance of INR 20,000 crore from NHB and lower interest rates resulting from increased liquidity in the banking sector would add to the funds for the sector at lower costs to the ultimate consumer. The new Credit-Linked Subsidy Scheme for Middle Income Group with allocation of INR 1000 crore in the budget for 2017-18 announced. Long term capital gains tax benefits on housing which could be availed after 3 years has been brought down to 2 years. Real estate sector as an asset class would gain as a store of value. This is extremely good news for real estate investors as they can book profits by paying a bare minimum income tax at the end of two years only on profits earned from sale of property.Affordable housing projects can be completed over five years instead of three years earlier to avail of 80IB and this was very necessary keeping in mind the time taken to get various permissions for real estate projects.
