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.
“The Budget was also Conducive to Promoting Domestic Manufacturing of Electronic”
Mr. Peter Chang, Region Head – South Asia & Country Manager, ASUS India
The budget gave the smartphone industry a lot to look forward to in the coming year. Government’s thrust on digitization through its push on Aadhaar-enabled payments will provide impetus to the demand of mobile phones in the country. The BHIM app has already been adopted by 125 lakh people and government’s plans to introduce two new schemes to promote its use will make the concept of a cashless society and digital currency, a reality. In addition to this, proposed extension of the OFC network to 1,50,000 gram panchayats for high speed broadband connectivity and rollout of 4G in the country will create a more digitally inclusive society. The budget was also conducive to promoting domestic manufacturing of electronics. With a provision of INR 745 crores in 2017-18 in incentive schemes like M-SIPS and EDF, manufacturing of smartphones in India should see a boost. We now look forward to the successful rollout of GST this year. Besides achieving standardization of taxation levels and making interstate movement of goods easier, it should also help sellers achieve similar selling prices. This coupled with all the other initiatives will enable us to bring more people under the digital umbrella.
“Digital Transformation Clearly Took the Center-Stage in the 4th Annual Budget”
Mr. Vishal Agrawal, Managing Director, India & SAARC, Avaya
Digital transformation clearly took the center-stage in the 4th annual budget, unveiled by our Hon’ble Finance Minister. While it resonated with digitization as the core of all government initiatives, it presented a comprehensive roadmap to achieve it as well. Major schemes like roll out of Aadhaar-based smart cards for senior citizens, promoting digital payments at petrol pumps & hospitals and directing 2,500 crore digital transactions across platforms like UPI will prove to be major differentiators in making this possible, and pace up India’s move towards becoming a completely cashless economy. Markedly, technology will play as a major facilitator to integrate all of this together and empower the common man at the end. We are positive that this change and standardization will put India at the cusp of the digital map. This budget also gives opportunity to a technology company like ours, to continuously support the back-end infrastructure of the country and accelerate transformation.
“Allocation of 10,000 Crore In Bharatnet Provides Needed Boost for Penetration of Digital India into Rural Segment”
Mr. Arvind R Vohra, Country CEO & MD, Gionee India
We are positive, that the Government’s increased allocation and incentives in schemes like M-SIPS and EDF will provide the necessary push to the mobile and internet manufacturing economy. Also the allocation of INR 10,000 crore in BharatNet provides the much needed boost for the penetration of Digital India into the rural segment, and for strengthening the consumptions of smartphones.
“Tax Holiday from 3 Years to 7 Years is a Welcome Change & Startup Friendly”
Mr. Sandeep Aggarwal, Founder, ShopClues and Droom
The Union Budget 2017-2018 is a progressive economy budget. The government has mentioned everything right from reducing fiscal deficit gap to cleaner GDP growth, expansionary nature of monetary policies to reducing the tax for income bracket of Rs 5 lakh.Profit linked-deductions for start-ups getting reduced to 3 years out of 7 years is a big relief for the startup ecosystem. Until, last year government had given three year tax holiday and MAT (Minimum Alternative Tax) which was going to expire by 2019 and now has been extended to 7 years. However, there are a lot of things I was hoping 2017 Union Budget to touch upon for example policies to ensure that capital is easily accessible to entrepreneurs, repatriation of money coming to India, R&D credit, no capital gain for any kind of start-up sale or exit and to make foreign listing for any Indian company straightforward.These pointers should have been addressed. Nevertheless, increasing the tax holiday from 3 years to 7 years is a welcome change and startup friendly.
“Limiting Cash Transactions to 3 Lakhs is Going to Work in Favor of Payment Solution Providers”
Mr. Sirish Kumar, Founder and CEO - Telr
The budget looks well-rounded and in the favor of digital economy, something we had anticipated following the demonetization drive. There are policies to take internet to rural masses, including Bharat Net and ensure security of same via BHIM app and setting up CERT. Furthermore, limiting cash transactions to 3 lakhs is going to work in the favor of payment solution providers, having provision to handle payments of bigger ticket sizes. The increased emphasis on AadhaarPay, tex exemptions on Iris scanners, MicroATMs and POS machines, in addition to iris scanners, is further going to democratize digital economy in India. Taxes have been lowered for more than 67% of MSME . This will make these businesses more viable.
“The Budget Directed a Sum of Rs 24,000 Crores for Growth of MSME Sector”
Mr. Ambarish Gupta, CEO & Founder, Knowlarity Communications
The Budget for FY 2017-18 has been declared and though it does not have any major reforms as pundits claimed it would, post demonetization, it has tried to incorporate all essential elements that were of prime concern. The flailing agricultural sector has received a big boost as a sum of Rs. 10 lakh crores has been allocated as credit to the farmers, with an interest free period of 60 days.
A number of tax SOPs have been directed towards aiding the MSME sector which was the worst hit during demonetization. For companies with an annual turnover of less than Rs 50 crores, corporate tax has been reduced from 30% to 25%. The budget also directed a sum of Rs 24,000 crores for the growth of the MSME sector. For start-ups reeling under high taxes, the Finance Minister has declared that they would have to pay taxes only for three out of seven years-which was earlier just five- that too only if they make profits.
“SMEs with Turnover up to Rs 2 Crore, will Enjoy Tax Relaxation From 8% to Now 6%”
Dr. Apoorv Ranjan Sharma, Co-Founder, Venture Catalysts
Union Budget 2017-2018 is a progressive economy budget. The government has introduced the right policies, from reducing fiscal deficit gap to cleaner GDP growth, whilst promoting digitalization and growth of the rural sector. For the Startup economy, there is a significant relief in deductions within profit-linked available to seven years from the current five years. Furthermore, the deduction in corporate tax is a great boost for the companies with turnover of 50 crores or less. Besides, SMEs with turnover up to Rs 2 crore, will enjoy tax relaxation from 8% to now 6%. The move is going to waive off the financial burden, while propelling small merchants on their path to success.
“Real Estate Investment Trusts (REITS) will Open Ways for Realty Sector to Get Easy Funding”
Mr. Rahul Shah, CEO, Sumer Group.
In Arun Jaitley's speech on Budget 2017-18, one of the much needed changes in the real estate sector was that the affordable housing will be given infrastructure status which is likely to result in increased participation from private players like us. The allotment of infrastructure status would boost investment from private players in the affordable housing campaign. It’s a good move by the government. Real estate Investment Trusts (REITs) will open ways for the realty sector to get easy funding and ensure timely completion of projects. From our perspective, it would be beneficial if home buyers can come under the lowest possible slab of the GST, thereby, enabling greater affordability for potential home buyers.
“Tax Holiday for Startups for Three out Of Seven Years of Setting up Company, will Ease Business Process”
Mr. Sumesh Menon, Co-Founder and CEO, U2opia Mobile
The Union Budget announcement reinstates the government’s focus on creating a holistic growth opportunity for early stage start-ups in the country. The tax holiday for startups for three out of seven years of setting up the company, will ease the business process. This will lead to a positive growth environment in which new businesses can operate and thrive, moreover it will also allow early stage startups the right kind of headway required to kick start their operations.
“Announcement of 745 Cr for Electronic Manufacturing in Country is Going to Attract Global Innovators”
Mr. Arjun Bajaj, CEO and Founder, Daiwa
We thank the Indian government for including such incentives in the Union Budget. The announcement of INR 745 Cr for electronic manufacturing in the country is further going to attract global innovators to make India as a hub for manufacturing tech and electronic products. The same, in addition to the GST Bill, meant at streamlining taxes and costs, is surely going to boost up the morale of the electronic manufacturing industries. The government must focus on bringing in the manufacturers of raw materials i.e. different types of components, parts, open cell etc. in order to truly achieve the dream of MAKE in INDIA.
