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.
“Government Has Taken a Step to Set up ‘Computer Emergency Response’ Team for Cyber Security of Financial Sector”
Mr. Altaf Halde, Managing Director, Kaspersky Lab- South Asia
Budget 2017 has all ingredients to make “Digital India” a reality. It has clearly spelled out the importance and roadmap for enhanced security of the digital platform. Post demonetization the number of digital transactions have increased, and also the concerns about cyber security. The government has taken a step to address this by announcing to set up ‘Computer emergency response’ team for cyber security of financial sector. It will lead to collaboration between the technology companies and the banking system in the country. For sure, this will create more opportunities domestically for the IT and technology businesses in India and offer higher trust level for customers. With demonetization and India going digital we would like to see more focus from government to allocate budget into improving our cybersecurity framework.
“It is Heartening to See Union Budget for FY18 Support Right to Progress”
Mr. Sudhir Kumar, CEO, itel Mobile
The Union Budget-2017 carries significant prospects for manufacturing brands. The FM has included provisions meant to boost electronic manufacturing by promoting MSIPS and EDF. Such policies would further receive funds worth 745 crores in FY18, hence, promoting indigenous manufacturers and attracting innovation and technology prowess engineered by foreign countries. And while the manufacturing sector celebrates policy changes, we further appreciate the streamlined delivery of these products, via the GST bill. These announcements are further in sync with the overall emphasis on transitioning India into a digital economy, empowered with fast internet access, cyber-security and access to smartphones. It is heartening to see the union budget for FY18 support the right to progress by shifting the focus back on to rural economy and agriculture; which truly resonates with our brand proposition.
“The Budget Allocated Towards MSIPs & EPF Will Reduce Dependency on Imports in the Industry”
Mr. Manish Sharma, President & CEO, Panasonic India & South Asia, and Executive Officer, Panasonic Corporation.
The Union Budget 2017 will have a long term impact, it needs to be analyzed further when it comes to the appliances and consumer electronics industry. This budget, a lot of impetus has gone to rural economy and allocation on infrastructure by the honorable finance minister. From a consumer electronic company point of view we were expecting direction on the upliftment in supply chain and logistics in India. The budget allocated towards MSIPs and EPF looks progressive and will surely reduce dependency on imports in the industry.We look forward to the next draft of GST to come forward, however the government’s move on imposing a 2% special additional duty on populated printed circuit boards (PCB) used for mobile phones imported into the country, will provide adequate protection to the domestic industry and give the necessary impetus to Make-in-India under the GST regime.
“Income Tax Rate Changes Will Encourage More People to Report Their Incomes”
Mr. Vijay Shekhar Sharma, Founder & CEO - Paytm
It is a digital economy budget. Government has pushed the digital theme in every area of the budget. Every person from a small shops to consumers are pushed towards the digital economy. Tax benefits, incentives to use digital payments and extending loans based on a digital footprint will create a larger merchant ecosystem for digital payments. Incentives for labour intensive sectors including housing, farming and dairy will help SMEs to create new jobs. Focus and attention to bank NPAs, as well as increasing bank capitalization is great step towards strengthening the financial system of the country. Finally, the income tax rate changes will encourage more people to report their incomes and create a larger tax net for the country. Overall, it is a great budget that will encourage people to move to the formal economy and derive benefits.
“We Welcome the Emphasis on Skill Development & Technical Education”
Mr. Kunal Bahl, Co-founder & CEO, Snapdeal
We commend the focus on growing the digital footprint in the country - enhancing digital infrastructure, capping cash transactions, reducing cash donations, using Adhaar Pay to enable more digital payments are significant measures. Initiatives make an impact when there is continued attention and the announcement of today builds on the demonetization efforts of last few weeks.We also welcome the emphasis on skill development and technical education - this will enable India to successfully harness the demographic dividend. The attention to affordable housing, greater employment in rural areas are the right interventions to build a more equitable society.
“We Welcome the Move to Improve the Skilling of Youth”
Mr. Prabhu Srinivasan, Chief Strategy Officer, Intelenet Global Services
We perceive this Union Budget 2017-18 to be one that will bridge gaps, in the country’s efforts to enhance its growth momentum. While certain aspects of the budget, such as the thrust toward digitization and skill India are indeed well-received, we feel that there should have been a dedicated focus on corporate tax and capital gains exemptions, to boost business growth amidst uncertain and volatile global economic conditions. The addressal of MAT is a step in the right direction, with the current amendment to increase the tenure for usability of refunds from the current 10 years to 15 years, while laying emphasis on the eventual abolishment of this tax type. We also welcome the move to improve the skilling of youth, as the next wave of business evolution will require an enhanced skillset, to meet the needs of a globalized and highly competitive business environment.From the personal tax perspective, we expect that the reduction in the lowest tax slab from 10% to 5% for individuals in the tax bracket between 2.5lakh to 5 lakh, will boost employee satisfaction. Our employees can therefore enjoy higher ‘take-home’ salaries which will in some form ease the pressure on companies.
“Cut in Tax Rates Allow Indian Businesses to Become More Competitive Globally”
Ms. Ambika Sharma- Founder & MD, Pulp Strategy Communications
The latest budget announcement holds great promise. I am particularly enthused by the hike in capital allocation for women skill development initiatives to INR 1.84 lakh crore for the 2017-18 fiscal. This move will empower women across the country and help them in becoming active contributors in the country’s growth. The allocation of INR 10,000 crore for the BharatNet project is also promising, as it will bring high-speed internet connectivity to rural citizens in nearly 150,000 gram panchayats through Wi-Fi hotspots. On the business side, the reduction of corporate tax for MSMEs with annual turnover up to INR 50 crore to 25% is a very welcome move which is expected to benefit nearly 96% businesses in the industry. Given that corporate tax is one of the major expenses for the country’s MSMEs, the cut in tax rates will promote greater growth within the sector and will allow Indian businesses to become more competitive globally.
“The Availability of Bandwidth Will Help Indians Adapt to the Digital Lifestyle”
Mr. Abhesh Verma, COO,nexGTv
I welcome the budget and appreciate the clear commitment shown by the Government towards fueling the growth of digital adaptation by focusing on underlying infrastructure. This is reflected in the availability of more spectrums and 10k crore worth of budget allocation for fiber optic laying beyond the already laid 155000 km. The availability of bandwidth will help Indians adapt to the digital lifestyle and thus, will help in the growth of the entire ecosystem. Additionally, the rebate in tax for people, especially the ones at the bottom of the pyramid will increase their in- hand disposable income a part which will also be spent on mobility, data, and entertainment, further working for the benefit of the OTT players.
“Separate Payments Regulatory Body Will Bring More Structured Policies”
Mr. Saket Modi, CEO & Co-founder, Lucideus
The budget this year is a positive one and shows the government’s focus on making India a technology super power, and hence the extensive focus on making Digital India secure. The formation of CERT for the financial sector is a testament. Due to the rise in number of digital transactions, CERT for this sector will certainly boost the cyber security stature and bring in more confidence amongst consumers to adopt digital transactions. Similarly setting up a separate payments regulatory body will bring in more structured policies and is a clear push to regulate cybersecurity in the digital payments segment. The government is also further pushing the adoption of BHIM app, which is by far a more secure method of making digital payments by bringing in new scheme mechanisms. Aadhar pay for merchants is also a welcome move. The budget has laid down clear focus areas and digital being one of the key focus excites us and is a positive move.
“Reduction in Home Loan Rates has Proven to be Beneficial for Housing Demand”
Mr. Abhishek Lodha’s- MD, Lodha Group
This is a budget which will enable empowerment of middle-class India, improving lives of millions. Reduction in Income Tax rates both for earners up to Rs. 5 Lakhs and MSME's, will help in increasing their purchasing power and shall also impact demand for affordable housing positively.More importantly, the simplification of rules qualifying affordable housing, tax holiday under 80 IBA and infrastructure status to this segment are significant positive moves by the government. These initiatives will in turn boost the overall economy as there will be more participation by developers in this area.Reduction in home loan rates has already proven to be beneficial for housing demand and it will further increase with the help of above measures.