Union Budget 2022: Reactions from IT Leaders

Union Budget 2022: Reactions from IT Leaders

The finance minister Ms. Nirmala Sitharaman has finally presented the Union Budget in parliament for FY 2022-23. The budget is expected to lay the foundation of modern and digitally empowered India. FM emphasized improving the digital infrastructure as technology is rapidly expanding its footprints. The government touched almost every sector be it startup, education, health, MSME, telecom or manufacturing. The IT industry plays a crucial role in economy hence the Finance Minister announced several measures to boost domestic manufacturing and uplift the IT sector. The IT leaders have shared their views on the budget announcement. Read the excerpts below:

“The Focus On Bolstering Digital Payments Will Continue To Augment Digital Adoption Across Regional India”

"Overall, this is a budget with a long-term vision supported by growth oriented policies driving job creation, digital inclusion, climate action and infrastructure development and therefore, is very timely for our country. As we continue to digitally transform, the focus on bolstering digital payments with a consumer-friendly lens, will continue to augment digital adoption across regional India. As a knowledge economy, I cannot emphasise enough on the importance of skilling to lead the digital disruption. Initiatives to drive skilling, reskilling and upskilling, digitally, will ensure we are ready for the digital future much ahead of the curve. Lastly, climate change is the most pressing global crisis that humanity is facing today impacting every individual, institution, government, community, and business. Investments in energy transition and climate action will take us on our path to sustainable development." - Arundhati Bhattacharya, Chairperson & CEO, Salesforce India

“The Focus On Skilling, Digital Learning And Clean Mobility Will Create Opportunities For Indian Youth”

“The 2022 Budget is one that has its eye set firmly on the future, with a technology-driven sustainable development at the core of its vision. The budget provides for digital enablement for all sectors from digital education, digital university, telehealth and digital banking among others. It also looks at boosting the economy with provisions for the start-up ecosystem, infra, clean energy. The focus on skilling, digital learning and clean mobility will create opportunities for Indian youth and will also go a great way in addressing the skill gap in various industries. It is such inclusive policies that will boost the outcome of the budget.” - David Li, CEO, Huawei India

“Union Budget 2022 Continues To Pave The Way For A Sustainable Economic Growth”

“Union Budget 2022 continues to pave the way for a sustainable economic growth in Amrit Kaal, backed by consistent structured approach. It underscores the Govt commitment towards Digital India and investment in Public Private Partnership through game changing initiatives like Gati Shakti programme, investment in the sunrise sectors and MSMEs, introducing policies for clean energy, among others. Infact, the seven engines defined under Gati Shakti initiative is bound to have a multiplier effect as it will help aid in reduction of logistics costs, enable supply-chain efficiencies, create employment generation all this, while using technology. It was encouraging to see the focus on clean energy. In line with Panasonic’s business strategy, we are looking forward to details on the Battery Swapping Policy and participate in India’s Electric Vehicle (EV) story. Also, the commitment on building a circular economy is the need of the hour as the world looks at sustainable solutions in a phased manner.”

“In my experience with the current regime, policy conversations are not limited to Budget day but take place through the year. So we are hoping for discussions on how exports can be further incentivized and policy can be enhanced for design led local manufacturing. From an electronics sector standpoint, we expected reforms in the Union Budget FY 2022 - 23 that would accelerate growth channelized by consumer demand. For instance, rationalizing the GST from 28% to 18% on ACs and large screen size (>105cm) TVs will improve affordability and penetration as these are no longer considered luxury items. We will look forward to hearing from the GST Committee on this. From the individual’s perspective, no changes in tax structure can also be a relief as it defines stability in current times. Though more money in the hands of the tax-payers could have helped drive consumption over short term.” - Manish Sharma, CEO, Panasonic India

“We Are Hopeful That This Year’s Budget Will Propel India Towards Becoming A Global Electronic Hub”

“The Union Budget 2022 has recognized the digital growth of the country as a primary focus. In order to promote cleaner mobility, the battery swapping policy and interoperability standards that government plans to introduce, incorporates the concept of energy/battery as a service. This will also help in developing the charging station ecosystem which is imperative for massification of EVs. The announcement will give impetus to the private sector to develop sustainable and innovative business models for battery and energy as a service.”

“The scheme for design led manufacturing to be launched for 5G ecosystem as part of PLI will be a boost to the overall telecom and electronic sectors. It will also provide and promote research and development of technology and solutions and will enable affordable broadband and mobile communication. The plan to roll out E- passports with embedded chip and futuristic technology, digital rupee using blockchain by RBI, Drone Shakti and Kisaan Drones and opening Defence R&D for industry, startups and academia are welcome moves that will accelerate the growth and development of the semiconductor industry in the country. As the government continues to accentuate focus on Atmanirbhar Bharat and Digital India, we are hopeful that this year’s budget will propel India towards becoming a global electronic hub.” - Sanjay Gupta, Vice President and India Managing Director, NXP Semiconductors

“The Proposal To Set Up A Unified Logistics Interface Platform Is A Welcome Move”

“We welcome the move by the Government of India to boost logistics as a means towards ensuring economic growth. The proposal to set up a Unified Logistics Interface Platform is a welcome move. Leveraging technology to complement the development of infrastructure will help bring in better efficiency. Furthermore, with real-time tracking, and inventory management as a part of the platform, this will go a long way in bringing India at par with global supply chain networks. LogiNext has always been an advocate for digitisation of supply chains, and it is reassuring to see the Government work towards this. The decision taken to extend the tax incentives provided to startups till March 31, 2023 is a reflection of the Government’s commitment towards ease of doing business in India.” - Dhruvil Sanghvi, Founder & Chief Executive Officer, LogiNext

“The Focus On Fintech And Technology Enabled Development Set An Encouraging Tone For The Industry”

“The focus on fintech and technology enabled development right at the outset of the budget speech set an encouraging tone for the industry and the overarching vision of an all-inclusive digital economy. Starting with the paperless budget, the common thread throughout the Finance Minister’s speech was the focus on promoting digital and technological innovations across sectors, which will spell accelerated growth for technology led development, energy transition and climate action, while ensuring an inclusive welfare society. It is heartening to see a sustained push towards making the benefits of digital banking reach every corner of our country with an initiative that marks the 75th year of independence by establishing 75 digital banking units across 75 districts. Core banking across hundred percent of the 1.5 lakh post offices by 2022, financial support for digital payments ecosystem, and a 6,000 crore rupees programme to rate MSMEs to be rolled out over 5 years, are some much needed steps in this direction.” - Lalit Mehta, Co-founder & CEO, Decimal Technologies

“The Setting Up Of The Digital DESH E-Portal For Skilling Initiatives Is The Need Of The Hour”

“The Government’s focus on creating a strong digital ecosystem to enhance banking and financial inclusion is a step in the right direction. Bringing all post office banks under the core banking ambit will enable seamlessness in digital payments and online transfer of funds and accelerate financial inclusion. The setting up of the Digital DESH e-portal for skilling initiatives is the need of the hour as it will bridge the gap between the supply and demand for digitally skilled and technically strong resources.” - Kunal Nagarkatti, CEO, Clover Infotech

“The Advancement In Enhanced Transparency Of Payments Is A Huge Stride Forward For India”

“The advancement in enhanced transparency of payments is a huge stride forward for India in terms of fintech innovation. The proposed end-to-end online e-Bill system will enable increased productivity for industries that go completely paperless. This will prove to be extremely fruitful for digitization. Furthermore, the acknowledgement that India's GST collection stands at Rs.1.4 lakh crore for the month of January 2022, exemplifies the growing need for digital taxation solutions that promise to take the Indian economy to the next level.” - Niraj Hutheesing, Founder and Managing Director, Cygnet Infotech

“Tax Incentives And Relaxation For Startups Were One Of The Most Awaited Announcements”

“Tax incentives and relaxation for startups were one of the most awaited announcements. The extension of one more year of the current tax incentives comes as a welcome respite for startups. It is important to understand how the ecosystem has been one of the key drivers of GDP and will continue to have an immense impact this year as well. Emerging economy companies raised a record $42 billion in global and domestic financing in 2021 and with the addition of 42 new companies to the unicorn club, there are 83 currently doubling the count. Yesterday’s economic survey highlighted the remarkable growth of startups in India during the past six years, especially in the IT/knowledge-based sectors. With the tax incentives being extended, it will enable Indian startups to recover from the effects of the challenges of the ongoing Covid-19 Pandemic. The budget has emphasized accelerating and bringing back growth to overcome challenges faced in the past two years.”

“With the increased focus on digital infrastructure and digital economy, the need for secure cyberinfrastructure will become all the more important. The time to focus extensively on cybersecurity and the support needed for companies building ‘Collective Cyber Defense’ technologies is now. Considering the record number of cyberattacks and ransomware threats that India faced last year, wish the government expands and extends its focus on strengthening the cyber security infrastructure and empower companies that have been making continued strides in building these solutions.” - Akshat Jain, CTO & Co-founder, Cyware

“This Year’s Budget Has Reiterated How Start-Up Ecosystem Has Been One Of The Key Drivers Of Growth For Our Economy”

“This year’s budget has reiterated how the start-up ecosystem has been one of the key drivers of growth for our economy. The extension of one more year of the current tax incentives and other measures comes as a relief for startups. India’s start-up ecosystem has been witnessing tremendous growth and attracting attention from Venture Capitals and Private Equity players. 2021 saw a record of $42 billion investment from global and domestic players. The most recent Economic survey states that India currently has over 61,400 startups recognised by the Department for Promotion of Industry and Internal Trade (DPIIT) and the previous financial year 2020-21 saw an increase with addition of at least 14,000 recognised startups. India also witnessed the doubling of the unicorn club to 83 start-ups with 42 new ones.”

“With the focus on the start-up ecosystem, the budget has also called for an expert committee to examine and suggest appropriate measures in scaling up the investments from the VC/PE community. Such a move will streamline the investments in start-ups and provide greater benefits to employees. The start-up ecosystem is also getting capital gains exemption and extension in the eligibility for claiming tax holiday by one more year to 31 March 2023. Employees who join start-ups at the various stages of growth can avail more equity and less cash in terms of salary compensation. This will help the Indian start-up base continue to witness steady growth and a more promising talent pool.” - Khadim Batti, CEO & Co-Founder, Whatfix

"Government’s Measures Towards Promoting Semiconductor Manufacturing Ecosystem will Make the Industry More Efficient and Competitive"

“5G in India is soon going to be a reality, as one of the major highlights in the Union Budget was the government’s assurance to conduct the required spectrum auction in 2022. This will help facilitate the rollout of 5G mobile services within 2022-23. We welcome the Finance Ministry’s intent to launch a design-led manufacturing scheme that will help build a strong ecosystem for 5G in the country. In addition to this, the government’s measures towards promoting a semiconductor manufacturing ecosystem will attract young talent, and make the industry more efficient and competitive. This will further boost fabless companies such as ours and other MSMEs working in the deep tech space, helping them engage in product R&D and design. Another laudable move by the government is to promote R&D and commercialization of technologies and solutions by enabling affordable broadband and mobile service proliferation in rural and remote areas." - Vishwakumara Kayargadde, Co-Founder and COO, Saankhya Labs

“The Budget Has Reemphasized The Importance Of Digital Banking, Digital Payments, And Developments In Fintech”

“We welcome Budget 2022 and see it as an accelerated transition towards Digital India. The Budget has reemphasized the importance of digital banking, digital payments, and developments in fintech to guarantee that the advantages of digital banking reach every nook and corner of the country in a consumer-friendly way. Launch of e-passport facilities is an indication of a digital future with paperless processes. This brings in a huge scope for CPaaS to facilitate digital transformation and secure communications for all. We look forward to contributing to India's vision for Amrit Kaal."- Ankur Agrawal, Senior Vice President -Conversational Messaging, Sinch (India)

“The Scheme Around Design-Led Manufacturing As Part Of PLI Scheme Would Fasten The Development Of Ecosystem”

“The industry has been completely galvanized under the pioneering initiative of PLI scheme, with Hon'ble FM today stating that it has potential to create 60 Lakh new jobs and additional production of 30 lakh crores. This is also a clarion call to the industry to work much harder in the years to come to make it a reality.  On a macro level, the scheme around design-led manufacturing as part of the PLI scheme would fasten the development of the ecosystem, and also changes in customs duty will drive greater domestic value addition in Electronics manufacturing in the country, which has grown rapidly in the last few years.” - A Gururaj, MD, Optiemus Electronics Ltd

"5G Will Finally Become A Reality For 1.3 Bn Citizens Of India”

"5G will finally become a reality for 1.3 bn citizens of India and will help us with "Connecting the Unconnected". To streamline and fasten the process, the government should also look at models of spectrum auction. In rural areas the government should create schemes for higher utilization of such spectrum rather than looking to maximize auction prices. Public 5G built and operated in a decentralized manner will also help us create more jobs in rural areas." - Umakant Soni, CEO & Cofounder, ARTPARK (AI & Robotics Technology Park)

“We Welcome The Government Commitment to R&D”

"It is heartening to see the government focus on the rural areas. This can accelerate government's earlier declared digital banks and overall enhance and enrich the rural economy. Digital banking and fintech spending by the government is going to enhance the financing and overall support the entrepreneurial spirit as well as benefiting the IT sector to provide the required infrastructure. Emphasis on 5G: Government’s announcement of 5G spectrum auction by 22- 23 was on the expected line. It is good to see the announcement of PLI scheme for design led manufacturing, this will help in getting ready with Make in India products and solutions. We welcome the government commitment to R&D and formalizing the same by allocating 5% of Universal service obligation to this but will need to see when this can be effective on ground. R & D has a cycle and sooner we get in we can start rolling the products when the actual implementation starts." - Sandeep Lodha, Co-founder, Netweb Technologies

“The Announcement To Boost Digital Education Is A Step In The Right Direction”

“The union budget 2022 is progressive and has come with encouraging announcements capital investments and infrastructure for long term growth. There is a clear focus on accelerating digital economy. The introduction of the central bank’s digital rupee using blockchain technology decision to establish 75 digital banks in 75 districts by scheduled commercial banks to encourage digital payments is another encouraging step towards building a digital economy. Furthermore, the announcement to boost digital education—setting up digital universities—is a step in the right direction.” - Virender Jeet, CEO, Newgen Software Technologies Limited

“The Announcement Of  'Drone Shakti' Program Will Continue To Strengthen The Sector Further”

“The Union Budget presented by the Hon’ble Finance Minister ensures supercharged growth for the drone industry in India in the years to come. The budget duly recognizes the key role drone technology is playing in solving some really tough to solve problems for sectors like land records, infrastructure, mining, disaster management, and agriculture. Furthermore, the announcement of Drone Rules 2021, the PLI scheme for the drone industry, and subsidies for drones to be used for agriculture applications have provided a fillip to the sector. In Budget 2022, the announcement of the 'Drone Shakti' program will continue to strengthen the sector further making it at least a $5B market in India available primarily for domestic companies. This will enable further innovation in the sector and fuel growth with further adoption of drone tech and 'drone-as-a-service'. The opportunities, emphasis, and support being provided to this emerging sector will help drone start-ups extend their portfolio across agriculture, digitization of land records, railways, mining, renewable energy, telecom, etc., and will lead to a paradigm shift for a new Digital India.” - Vipul Singh, Founder & CEO, Aarav Unmanned Systems (AUS)

“The Budget Has Demonstrated A Good Balance Between Today’s Needs And The Future’s Demand"

"This is a growth-oriented Budget, I am sure that stepping up the capital expenditure sharply by 35.4% will have an incremental effect on the overall growth of the economy. It is good that the policy makers understand that nearly half of our population is likely to be living in urban areas by 2047, when India is at 100. The announcement for urban capacity building like mass transit, planning help, etc. would act as a good principle for development of the country. The budget has demonstrated a good balance between today’s needs and the future’s demand." - Rajeev Sharma, Chief Strategy Officer, Mitsubishi Electric India Pvt. Ltd.

“Major Advantage Of 5G Will Be Its Ability For Banks To Improve Proactive Fraud Prevention”

"Union Finance Minister Nirmala Sitharaman announced earlier about initiating the 5G spectrum in India next year. This development is incredible, especially for the banking sector. The spectrum will provide faster and simpler payment options, which will make mobile and digital payments even more appealing to the masses and merchants alike, further boosting usage. This is key to economic growth. Another major advantage of 5G will be its ability for banks to improve proactive fraud prevention and take informed decisions in real-time. Processing data, verifying the nature of transactions, confirming transaction amounts and funds availability, consulting multiple data instances in real-time, coupled with customer geolocation and merchant ID, will reduce fraud detection errors and false positives, thereby protecting consumers and the bank’s bottom line." - Vishwadeep Bajaj, CEO, ValueFirst

“One Of The Salient Aspects Of The Budget Is The Continued Emphasis On Skilling And Employability”

“Notwithstanding a challenging macroenvironment, the Finance Minister has presented a forward-looking budget with a strong focus on physical as well as digital infrastructure. While the move to grant infrastructure status to data centres will be a game-changer for India, initiatives such as Digital Rupee and e-passports based on futuristic technologies are positive for the tech industry. The digital push in various sectors is aimed at catalysing growth, efficiency, and inclusiveness in the new normal. This can be seen in the expanded scope of key labour and employment portals, the launch of a national digital health platform, the addition of all post offices to the country’s core banking system, and the support for digital payments, fintech innovations and affordable broadband. It is heartening to see the growing accent on digital tools and technologies in the area of education and learning outcomes, as evident in the initiatives around e-content creation and distribution. The setting up of virtual science, mathematics and simulated learning labs to foster critical thinking, and a digital university to raise the bar of quality and personalisation in learning will enhance India’s global competitiveness.”

“One of the salient aspects of the budget is the continued emphasis on skilling and employability, which are critical to reinforcing India’s position as a global skills hub. The launch of a dedicated skilling e-portal and the realigning of skilling programmes, partnerships, and frameworks with rapidly evolving industry needs are timely steps in the right direction. Nurturing more structured development of tier 2 and 3 cities is a crucial move towards augmenting our ability to capitalise on our talent dividend, which continues to be one of the cornerstones of the global success of India’s IT services industry.” - Debashis Chatterjee, CEO and MD, Mindtree

“It Is Encouraging To See The Government’s Support For The Startup Sector”

“It is encouraging to see the government’s support for the startup sector in the Union Budget for 2022 through tax incentives and easing of regulatory frictions in venture capital investments. Additionally, the impetus towards the rollout of 5G and broadband services in 2022 will catalyze an entrepreneurial culture and expand India’s presence on the global map of technology innovation.” - Bhavin Turakhia, Co-founder and CEO, Zeta and Founder and CEO, Nova (Flock and Titan)

“The Government Has Shown That They Are Going All-In On India’s Start-Up Dreams”

“The Government has shown that they are going all-in on India’s start-up dreams, leveraging it as a big economic lever, with tax benefits. We are extremely happy and thankful that the the redemption of taxes for 3 consecutive years which were offered for three years will be extended by 1 more year. The economic survey has shown that in 2021 14,000+ new startups have been recognised in India, and the trend shows that it’s up 20 times in five years. This was a clear indication for the government that Indian start-up ecosystem needs the push to fly. Talking of flying, the Drone Shakti program signals government’s growing belief in the power of technology, and for a growing tech start-up like us, it also opens up a lot of opportunities. Our innovation teams will take this as a green signal to enter into the drone space and begin developing solutions.” - Abhinav Jain, CEO and Co-Founder, ALMOND Solutions 

We Are Glad That The Budget Plans Focused On The Growth Of The Indian Start-Ups Ecosystem”

“It’s encouraging to witness that India is becoming a technology-led economy and the Union Budget 2022-23 proves this further. We are glad that the budget plans focused on the growth of the Indian start-ups ecosystem and adoption of technology is promoted across sectors. Focus on sunrise sectors and supportive policies for AI, Geospatial Systems and Drones, Genomics and Pharmaceuticals, etc. can assist sustainable development at a larger scale. Budget investments in R&D to further technological breakthroughs will definitely accelerate the digital economy. Furthermore, tax holiday for another year would definitely help upcoming startups and provide a much-needed boost.” - Ranjan Kumar, Founder & CEO, Entropik Tech

The Union Budget For 2022 Carries A Positive Message For The EV Sector”

“The union budget for 2022 carries a positive message for the EV sector. More efforts than ever are being made by the government towards boosting the EV ecosystem. It's very encouraging to see this renewed dedication, and it also looks like there are some promising initiatives in store for 2022 with this budget. The Indian government's recent policy to allow the swapping of electric vehicle batteries is a step in the right direction. This new policy will help get more people to buy electric vehicles and will work to increase battery recycling, thus helping build infrastructure for electric vehicles. Turning the most expensive EV component—the battery—into an operational cost, will significantly reduce the prices of electric vehicles and promote their adoption.” - Amarjit Sidhu, Executive Director, Detel 

“Union Budget 2022 Has Announced PM Gati Shakti Program As One Of The Priority Areas Of The Government”

“Union Budget 2022 has announced the PM Gati Shakti program as one of the priority areas of the government. Seven engines of the PM Gati Shakti initiative are roads, railways, airports, ports, mass transport, waterways and logistics infra. As the Indian economy moves towards strengthening these initiatives, geospatial technology will gain more prominence in the process. As shared by the Hon’ble Finance Minister, the Gati Shakti program would involve huge investments in construction of about 25,000 Kms of highways, multimodal transport, and modernization of land records. These are welcome steps, and GIS and other geospatial technologies will facilitate efficient implementation of these schemes. With the launch of Jal Jeevan Mission (Urban), the government is aiming at universal water supply in all 4,378 Urban Local Bodies with 2.86 crores household tap connections, as well as liquid waste management in 500 AMRUT cities. GIS based water distribution network planning, execution and operations will go a long way in bringing these plans to fruition more quickly and efficiently.” - Agendra Kumar, Managing Director, Esri India

“We Are Happy To See That The Budget Is Focused On An Overall 'Ease Of Doing Business' Theme”

“I would like to applaud the efforts of the Finance Ministry on the Union Budget 2022, which is technology-focused and will be a catalyst for growth.  It is apparent from this budget that we are on track to achieve our objective of a truly digital India. The adoption of emerging technologies like blockchain and artificial intelligence in the RBI-backed Digital Rupee, E-Passports, Geospatial Systems, etc. will be a game-changer in terms of strengthening the country's economy. Additionally, the Union Government’s push towards skilling, reskilling, and upskilling people through the digital ecosystem for skilling and livelihood - DESH-Stack E-Portal, will help address the talent gap and open the doors to newer opportunities. We are also happy to see that the budget is focused on an overall 'ease of doing business' theme, which will prove to be a boon for the country in the long run.” - Dharmender Kapoor, Chief Executive Officer and Managing Director, Birlasoft 

“The Theme Of Continued Ease Of Doing Business Push To Further Digitise The Economy”

“A capex heavy, investment push and demand generating budget.  I expect the private sector to more than match the capital spend of the Government thus supporting GDP growth of 9% plus, leaving enough headroom for expenditure on farms, health, education and other social sectors.  The theme of continued ease of doing business, consistency and stability in tax rates, rebates, push to further digitise the economy, issue of RBI backed digital currency, legitimising digital assets, etc. seem to aid and support the all and in specific the IT Industry which is expected by NASSCOM to grow to become $350 billion in size in 5 years.  In all sounds like a ‘financial budget’ of the Country”. - Venkatraman Narayanan, Managing Director & CFO, Happiest Minds Technologies

“Government’s Stance On The Block Chain Technologies Will Give A Big Boost To The Tech Eco-System Of India”

“The world has seen decades of accelerated digital transformation and adoption of technology, owing to the pandemic. The budget significantly encapsulates the role of tech and includes disruptive, innovative and futuristic growth potential of an aspirational India. The enhanced status of the Data Center and Energy projects to infrastructure status marks a huge step for the industry from a ‘Make in India’ perspective and reassuring several domestic Data Center developers. Additionally, the development and auctioning of the 5G spectrum, incentivizing the AI, EV and digital transformation space will contribute significantly to the Digital India mission. The government’s stance on the Block chain technologies and the implementation of digital rupee using block chain and other technologies will give a big boost to the tech eco-system of India. We perceive this move to be a big positive push for the government's "Digital India" programme.” - Ankit Saraiya, Director, Techno Electric and Engineering Limited

“ECLGS Scheme Is A Welcomed Initiative And Will Help The MSME Segment”

“ECLGS scheme is a welcomed initiative and will help the MSME segment with their cash flows and help fuel growth for companies across segments. The interlinkage of government portals will help credit facilitation and enhance entrepreneurial growth for tenders and new business opportunities in a single reformed structure.  This level playing field should yield a chance to start-ups and young companies registered as MSME to offer their products and services.  Further integration of government portals will help ease the financial burdens with cleaner payment lines making payments more on time than in the past.  This itself, will once again, help very important cash flows and credit lines of MSME companies. The extension of the 15% tax scheme for start-ups for an additional year, is of course, welcome.  Additionally, the government has allowed public sector undertakings / government companies to accept surety bonds thereby making it easier for smaller companies to provide performance guarantees which may help in the bidding stipulations for tenders.  This step should make competition thrive across different sized companies listed under MSME, especially those in start-up mode. The digital Rupee initiative may open up opportunities for the IT sector in the future. Overall, the reforms inculcated in the budget is positive for the MSME segment, and hopefully it shall provide them with growth opportunities, and the government in the next budget can look for reforms and allocations of programmes for the MSME segment.” - Lokesh Harjani, Founder & CEO, OnSpot Solutions

“The Thrust Provided To Digital Assets Is A Much-Needed Welcome Step”

“The thrust provided to digital assets in form of giving green signal to crypto currency is a much-needed welcome step. With a flourishing fintech ecosystem, this openness to digital currency will help optimize and fasten the mass scale leverage of digital infrastructure. The B2B sector is expected to be among first movers to include digital currency-based transactions for businesses. From demand perspective, we believe that the country’s push towards digital-led framework for all key aspects, will result in increased opportunities for IT services from domestic market.” - Abhishek Rungta, Founder and CEO, INT

“By Prioritizing Skilling And Reorienting Skilling Programs The Government Will Give An Immense Boost To Youth”

"The budgetary allocation this year emphasises on the needs of skilling, reskilling and upskilling citizens. Considering the situation of the last couple of years which greatly impacted the job pool and led to the declining job opportunities leaving the employable workforce jobless, this years' union budget focused on creating 60 lakhs jobs . Hence, by prioritizing skilling and reorienting skilling programs the government will give an immense boost to the youth of the country to get back to work. I wish the government had definitive plans to accomplish the same and even encourage such platforms that work towards skilling from the perspective of employability and create business models on successful employment." - Narayan Mahadevan, Founder, BridgeLabz

“The Proposed Reforms Around SEZ Administration Will Significantly Enhance The Productivity Of Export-Oriented Units”

"The announcement of green bonds to raise capital focused towards carbon footprint reduction could be a significant milestone for industries that work towards sustainability. The green bonds will aid public sector projects, which in turn would support and grow ancillary private businesses that provide products and services towards this. The proposed reforms around SEZ administration and streamlining customs to only risk-based checks will significantly enhance the productivity and effectiveness of export-oriented units that manufacture and products and services exclusively for the global market" - Dipanjan Purkayastha, CEO & Co-founder, HyperXchange

“The DESH- Stack Eportal And The Formation Of A Digital University Are All Steps In The Right Direction”

“The government recognizes that as it puts its thrust on digital transformation to usher in economic growth the human capital of the nation needs to be modernized, digitally empowered and rightly skilled, and this is a very welcome move. The DESH- Stack eportal and the formation of a digital university are all steps in the right direction and a major push towards upskilling & reskilling that should go a long way in addressing skill gaps and employability issues of the industry.” - Milind Borate, Co- founder and Chief Development Officer, Druva

“Digital Push For Skilling Across The Digital Ecosystem Is An Impetus In The Right Direction”

“Avaali welcomes the announcement of Data Exchange among all-mode operators to be brought on Unified Logistics Interface Platform. Digital solutions are the way forward in any kind of enterprise management. Furthermore, to make businesses more efficient & profitable, we require a workforce that is skilled in API. This will be one of the most sought after approach as we pivot ourselves to the needs of a post-pandemic workforce requirement. The finance minister’s digital push for skilling across the digital ecosystem is an impetus in the right direction.” - Srividya Kannan, Founder & Director, Avaali Solutions

“Budget 2022 Continues To Provide Impetus For Growth In The Domestic Market”

“Drawing inspiration from Atmanirbhar movement, Budget 2022 continues to provide impetus for growth in the domestic market. The measures introduced by the Finance Minister in Budget 2022 will not only support domestic capacity creation but also ease the raw material supply constraints. The approval of PLI scheme for white goods was a major milestone for consumer durables sector in India and we are pleased to see that the Government has unleashed plans for PLIs and Phased Manufacturing for other sectors, that are bound to grow rapidly in the coming years. At Voltas, we have been contributing towards nation building since our inception and we look forward to being a part of India’s growth story as it strives for development.” - Pradeep Bakshi, MD & CEO, Voltas Limited

“The Focus On 'Ease Of Doing Business' Is A Great Step”

“This year, the Union Budget has been one of recovery and stabilization from the impact of COVID-19. The Budget has taken some initiatives for MSMEs and India Inc for start-ups. The extension of ECLGS scheme is a welcome move for MSMEs. The tax concession period has been extended by one more year, which in my opinion is a very positive move. A tax rate of 15% has been decided for the newly incorporated manufacturing unit which will further boost manufacturing activities. Healthcare and infrastructure were the main highlights of Budget 2022 and immense investment has been allocated for the expansion of roadways and logistics networks. Introduction of ‘Digital Rupee’ using blockchain technology sends a strong message that India is at the forefront of technology implementation. A digital currency issuance by the RBI will result in a structured approach with controlled regulation and bring in transparency to transactions enabling accounting of all money. The push on digitization will make way for more inclusion in the ecosystem.”

“The focus on 'Ease of doing business' is a great step, as it will further promote entrepreneurship in the economy. India is to grow at 9.27%, the highest among all large economies. With a focus on contributing to the environment, chemical-free natural farming focusing on soil, biodiversity and human well-being is a welcome move. The budget is growth-oriented with an impetus on capital expenditure to fuel economic growth and employment generation. SEZ Act to be replaced with the new legislation is a much-needed announcement. Introduction of the battery swapping policy and recognizing battery and energy as a service will help to develop charging infrastructure and increase the use of EVs in public transportation. This would motivate businesses to incorporate EVs into their fleet and create new avenues for companies to venture into the business of battery swapping. The formation of a strong charging infrastructure alongside the highways across the country would promote the use of EVs for interstate travel.”

“An additional allocation of Rs 19,500 crore to boost manufacturing of solar modules under the government’s flagship PLI scheme has the potential to create 60 lakh new jobs, while producing 30 lakh crore jobs during next five years. International travel has been severely impacted during the pandemic. We are pleased with the introduction of e-passports as it will provide a boost to the travel industry and add convenience. Extension of ECLGS scheme with an additional allocation for the hospitality sector is a positive move as it would help small and mid-size hotels overcome liquidity issues and pave way for growth.” - Yogesh Mudras, Managing Director, Informa Markets in India

“The Proposed Blockchain-Driven New Digital Currency Will Make Currency Management System More Transparent”

“With booster doses to frontline sectors like infrastructure and agriculture, and first and second doses to most other sectors, Finance Minister Nirmala Sitharaman has adopted a universal vaccination policy to revive the economy. It is heartening to see that the IT and ITES sectors got their due dosage to accelerate the digital transformation.  The proposed blockchain-driven new digital currency will obviously make the currency management system more transparent, immutable, cheaper and efficient.  With stress on BharatNet, smart technologies, 5G spectrum proposals, the budget seems progressive and futuristic from a technological perspective. Though expected, the tax on virtual digital asset trade may put down some, but at the same time, it is a step forward in formalising and bringing in a regulatory framework for cryptocurrencies.” - Raj Srinivasaraghavan, CTO, SecureKloud Technologies Ltd

"This Year, Too, The Union Budget Retained The Trend Of Complementing The Macro-Factors”

"This year, too, the Union Budget retained the trend of complementing the macro-factors while focusing on micro thematic reforms. While this year's budget is big on infrastructure, MSME and rural development, it also has multiple contributing nodes that positively impact the IT-BPM sector. The finance minister announced that the government is looking to replace the previous SEZ Act allowing states to participate in the development. Units within the existing SEZs may sell their products/services in the domestic market with lower custom duties and still operate globally. This change will promote the export units and make them sustainable. The Customs Administration of SEZs will be fully IT-driven and function on a Customs National Portal with updated technology. Overall, the IT/BPM industry stands to benefit. Moreover, the move to boost employment by creating over 60 lakh jobs for the youth will directly benefit the IT industry. The government plans to launch a digital ecosystem for skilling and livelihood. Online training will aim to skill, reskill, and upskill citizens. Hence, majorly it is a win-win situation for the IT-BPM sector while working in sync with the other industries and is all set to gain from the Budget announcements." - Sameer L. Kanodia, Managing Director and CEO, Lumina Datamatics Limited

“The Budget Gives A Boost To The Overall Fintech Ecosystem”

“The Union Budget 2022 echoes that this year will be an exciting one for the Indian FinTech industry with the government continuing to play a supporting role. With India @ 100 in mind, this budget gives the much-needed thrust on financial inclusion by expanding the access of digital banking, digital payments, and FinTech into the remote areas of the country. Initiatives such as bringing all post office banks under the core banking umbrella while setting up 75 digital banking units in 75 districts of the country are a welcome move that will take India forward. Digital Rupee will further decrease friction in the movement of money, reducing the cost of money and in the long-term contribute to fuelling economic growth. The budget gives a boost to the overall fintech ecosystem, especially to the start-ups in FinTech sector who are working towards making digital payments safer and more frictionless than before.” - Rajeev Agarwal - CEO & Founder, Innoviti Payment Solutions

Related Stories

No stories found.