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.
“Manufacturing Allocation is Good Initiative to Start Off”
Mr. Sanjeev Bhatia, CEO, Zopo Mobile India and Managing Director of Adcom
The budget 2017 is extremely positive and people friendly. Reduction in direct taxes for SMEs & low income individuals is definitely going to benefit the masses and will really impact the Indian economy in a huge way. The GST is proposed to implement on July 1st, so indirect taxes such as, excise, customs, service tax have not been touched. Manufacturing allocation is good initiative to start off. With such initiatives India can grow on the charts of GDP. In the direction of making India a Digital nation a needful decision was made, with the focus rightly on digital India the budget also gave boost to telecom and manufacturing sector through Digital India. Modernization is good for any nation, for a successful and powerful nation fast growth can only be reached with the help of technology. Those portions of India that are deprived from the fruits of technology will now be able to enjoy it. Government's mission to connect 1,50,000 gram panchayats with hotspots and digitization will increase the use of technology and will create a friendly environment for digital payment system.
“Finance Minister did a Good Job Focusing on Key & Strategic Measures for Railway Sector”
Mr. Tilak Raj Seth, Head Mobility, Siemens Limited and CII Chairman, Rail Transportation & Equipment Division
The industry was keen to see the representation the rail sector would get in this combined Budget, the first in independent India. The Finance Minister did a good job focusing on key and strategic measures for the railway sector. The increased Budget allocation to railways, focus on safety through the ‘Rail Sanraksha Kosh’, an enhancement of throughput are very welcome measures. Additional resources will come to the transport sector basis the announced measures of modifying the metro policy, PPP operation of tier two cities and through the ‘ Multi Model Transport Approach.
“The 5% Tax Reduction for MSME Units up to a Turnover Limit of 50.00 Crores is a Welcome Move”
Mr. G.V. Kumar, Founder, CEO & Managing Director, XIUS
Megasoft is extremely supportive of the 2017–18 Union Budget. The Government’s “Transform, Energize and Clean (TEC) India” agenda showcases their thrust in changing the face of India.The announcement of an ambitious target of INR 2500 crore worth of digital transactions across payment platforms such as UPI, USSD, IMPS, Aadhaar Pay, tax exemptions on digital transaction equipment, referral bonus and cash-back for consumers and merchants to promote BHIM are all evident of the Government’s vision of a digitalized India.The renewed focus on enhancing Optic Fibre Network and efficient spectrum management augur well for overall sentiments of the industry. Initiatives such as INR 10,000 crore for Bharatnet, Swayam platform for imparting rural education again complement the telecom industry. MVNOs will also likely benefit from the initiatives and measures laid out in the budget.Besides, the 5% tax reduction for MSME units up to a turnover limit of Rs 50.00 crores is a welcome move. Megasoft is completely in sync and geared up to match the Government’s vision of India’s ICT-enabled transformation.
“We Appreciate an Allocation of 2,41,387 Crores for Transforming Transportation Sector”
Mr. Rajiv Bhalla, Managing Director, Barco India
We appreciate the deep-rooted changes introduced in the Union Budget 2017. The budget further reflects the commitments of the Indian Government to truly promote digitalization in the country. This includes allocating Rs 10,000 crore for Bharat Net Project which is dedicated to extending high-speed broadband, Wi-Fi hotspots and Fiber Optic network in India, especially to the rural landscapes, Gram Panchayats and more. Manufacturers of tech and electronic products will also receive a boost, following the announcement of Rs 745 crore funds allocation for the same. When viewed in the light of the upcoming GST bill, the entire budget caters to the unique needs of promoting digitalization in an emerging market. Besides, the boost to digitalization is well supported with a host of infrastructural overhauls as well. We appreciate an allocation of Rs 2,41387 crores for transforming the transportation sector, including ships, rails, and roads. Railways further have a development expenditure of Rs 1,31,000 crores, out of which, the government will be providing Rs 55,000 crores. These changes are going to have a transformational effect, positively influencing the advent of Smart Cities in India.
“On the Positive Side, there has been Tax Reduction on MSMEs”
Ms. Shilpa Mahna Bhatnagar, CEO & Co-Founder Evoxyz Technologies
The Union Budget 2017 gives me a mixed feeling, certainly more on the positive side. On the positive side, there has been tax reduction on MSMEs, these concessions will also build a platform for MSMEs to embrace the company’s format, reduction of custom duties on hardware for Fintech innovation and increase in child and women healthcare fund, the only concern which advances is that whether we as startups will be able to use them. The processes to leverage these reforms are so complex that entrepreneurs find it extremely difficult to use them; hence there should be more focus now on ease of execution of these reforms for startups to flourish.
“We Appreciated Reduction in Interest Rate & Increase in Exemption Limits for Home Loan Buyers”
Mr. Bijay Agarwal, M.D, Salarpuria Sattva Group
The Union Budget is inclusive and progressive. It will put the country on track for vibrant economic growth in the future. We welcome the government's step towards improving the existing road infrastructure and the new metro rail policy is right step to enhance connectivity and decongest urban areas.Now, with affordable housing being provided an infrastructure status, it will give an impetus to the Central Government’s mission of achieving ‘Housing for All by 2020’. Further, change in the unit area from built up area to carpet area will bring more projects under its ambit and extension of completion timeline from 3 years to 5 years is a welcome step.Also, clarification on the taxability on JDA transactions arising only in the year of completion of the Project is big relief to the real estate sector.Relaxation on LTCG on immovable property by reducing the holding period to 2 years and shifting of base year to 2001 for the purpose of indexation will bring down the capital gain liability in the hand of the owner and liquidity will improve.However, we would have appreciated further reduction in interest rate & increase in exemption limits for home loan buyers.
“Reduction in Holding Period for Long Term Capital Gain from 3 Years to 2 Years Could Provide a Boost to Real Estate Sector”
Mr. Anand Sundaresan, Chairman, Schwing Stetter Sales & Services India
Sufficient thrust has been given for the sectors across Transport, Infra-structure development including rail road, highways, PMGS program etc. Reduction in the holding period for long term capital gain from 3 years to 2 years and advancing the base year for calculating the indexation for cost of acquisition from 1981 to 2001 is very much welcome and could provide a boost to the real estate sector. Significant emphasis on digitalization to bring in transparency and to reduce corruption is a move in the right direction. The Income tax rebate given to promote MSME Sector is also a very good decision.
“We Foresee the Creation of More Job Opportunities Especially in Digital Payments & Pos Terminals Space”
Capt. Partha Samai, Sr. VP & Group Head- Human Resources, AGS Transact Technologies Ltd.
The Union Budget 2017 has been positive for India’s digital economy and ‘Bharat’ but otherwise a dry budget for India especially the salaried class as it failed to address the principle & interest component in the home loans segment. Two progressive policies with positive implications are the 5 % reduction in the tax rate for individuals between Rs.2.5 – Rs.5 lakhs and the amendment to bring about parity in tax treatment between salaried and non-salaried self-employed individuals. Additionally, employee investments in National Pension System (NPS) will further increase cash flexibility for individuals as they can now withdraw up to 25% of their contribution without paying tax. With continued push on the banking sector with greater focus on digital, we foresee the creation of more job opportunities especially in the digital payments and PoS terminals space. We also anticipate employment opportunities with the upcoming Metro Rail Act focusing on standardization of hardware and software.
“We at Sulekha Believe that this Budget Promises Optimism for Local Services & Properties Sector”
Mr. Satya Prabhakar – Founder & CEO, Sulekha
I believe the Government has taken concrete steps to give a fillip to the economy and yet tilt it towards white. Reduction of income tax by 5%, from 30% to 25%, for SMEs with a turnover of less than 50 Cr strongly indicates Government’s belief that it expects the SMEs to be major drivers for the economy. Reducing the LTCG window for property from 3 years to 2 years and putting affordable housing (below 30L) under infrastructure development category is also a significant step to improve the real estate sentiment in the country. We at Sulekha believe that this budget promises optimism for the local services and properties sector.
“We are Pleased to See that Government is Launching a DigiGaon Initiative to Provide Tele-Medicine, Education & Skills Through Digital Technology”
Mr. Amit Sharma, EVP and President, Asia – American Tower Corporation
Overall it’s a progressive budget; it demonstrates the government’s commitment to positioning the economy on an accelerated growth trajectory.At ATC, we are especially buoyed by the continued emphasis and support to initiatives under the Digital India program. Telecom and Telecom infrastructure sector growth will be critical for strengthening the digital payment infrastructure, and for boosting digital payments. As the country’s largest independent telecom infrastructure provider, we believe in the tremendous potential and promise of Digital India, and are committed to supporting and partnering with the Government to ensure the success of the Digital India program.By the end of 2017-18, high speed broadband connectivity, via optical fibre, will be available in more than 1,50,000 gram panchayats, which will allow us link our towers and provide rural broadband connectivity. We are pleased to see that the Government is launching a DigiGaon initiative to provide tele-medicine, education and skills through digital technology. This is very similar to ATC’s Digital Village program where we provide self-learning opportunities for children through computer kiosks, as well as digital literacy to adults.
