Post Union Budget Reaction 2017

"The new policy proposed in the budget, allowing startups a 3 year tax holiday in the first 7 years of their existence is a welcome change. However, this policy could have been more impactful had it included startups incorporated prior to 31 Mar'16, and extended the period when the tax holiday can be availed from 7 to 10 years. Equally importantly, while the present Ministry and Department are very committed to their work, to avoid future mis-use of this policy, clear guidelines and definition of a startup should be laid out, and any subjectivity in the granting of these tax holidays avoided."- Mr. Abhiraj Bhal(Co-founder, UrbanClap)

Mr. Rajiv Vij(CEO & MD, Carzonrent.com)

"The Union Budget presented brings out the progressive outlook of the government for Businesses as well as individuals. The investments proposed in the area of skill developments are a welcome step. The investments in building National Highways is a welcome step for the car rental industry. The impact of the demonetization drive is visible with progressive steps taken for an inclusive and cashless economic future of India."

 

Ms. Sakshi Vij (Founder & CEO, Mylescars.com)

"The Union Budget presented is a welcome change. The governments focus on inclusion and encouragement of the MSME sector along with Startups is visible. The increase in the Profit linked deductions period to 3 out of 7 years is a welcome change for young startups like us. The exemptions proposed for the Indian entities with Foreign placed portfolio investments is also a step in the right direction."

 

Ms. Sangeeta Banerjee(Co-Founder & CEO – ApartmentADDA)

"When it comes to Real Estate / Housing, the Budget is solely oriented towards boosting Affordable Housing, as expected. Affordable housing defined as House Cost up to Rs.50Lakh or Carpet Area of 300 sqft in metros and 600 sqft in other cities.. This definition varies for different benefits in the budget. For urban Apartment Communities or RWAs, a positive Budget announcement is for the Govt will Undertake important reforms by providing legal framework for dispute resolution and re-negotiations in PPP projects and public utility contracts. Many Apartment Communities or RWAs wish to build or maintain public amenities in their neighbourhood in partnership with Govt. This could be Parks, Lakes, or even Last Mile Roads. A robust PPP framework as well as dispute resolution will make this a win-win for the Gov as well as forward-thinking neighborhoods."

 

Mr. Sunil Gupta , Founder & Director, ExportersIndia.com

"With “Transform, energise, and clean India, that is Tech India” this budget has upped allocation for rural, agriculture and allied sectors by 24% has opened scope for increasing investments and yielding multiple benefits. The rapid growth in manufacturing sector is a good sign for overall economy. The new FDI policy is a welcome move. MSMEs and start ups have all the reasons to cheer with a dip in income tax to 25% for companies with an annual turnover of Rs.50 crore. Their grin grows wider with the FM proposing dip in bank lending rates. Incentives such as cash backs, referral schemes on BHIM app is all set to push the use of digital transactions which is yet another reason for MSMEs to move to online business models. The lowering of Income tax would also increase the spending capacity which will benefit the SMEs."

 

PostUnion Budget Reaction 2017

Mr.Abhiraj Bhal(Co-founder, UrbanClap)

"Thenew policy proposed in the budget, allowing startups a 3 year tax holiday inthe first 7 years of their existence is a welcome change. However, this policycould have been more impactful had it included startups incorporated prior to31 Mar'16, and extended the period when the tax holiday can be availed from 7to 10 years. Equally importantly, while the present Ministry and Department arevery committed to their work, to avoid future mis-use of this policy, clearguidelines and definition of a startup should be laid out, and any subjectivityin the granting of these tax holidays avoided."- Mr. AbhirajBhal(Co-founder, UrbanClap) 

 

Mr. RajivVij(CEO & MD, Carzonrent.com)

"TheUnion Budget presented brings out the progressive outlook of the government forBusinesses as well as individuals. The investments proposed in the area ofskill developments are a welcome step. The investments in building NationalHighways is a welcome step for the car rental industry. The impact of thedemonetization drive is visible with progressive steps taken for an inclusiveand cashless economic future of India."

 

Ms.Sakshi Vij (Founder & CEO, Mylescars.com)

"TheUnion Budget presented is a welcome change. The governments focus on inclusionand encouragement of the MSME sector along with Startups is visible. Theincrease in the Profit linked deductions period to 3 out of 7 years is awelcome change for young startups like us. The exemptions proposed for the Indianentities with Foreign placed portfolio investments is also a step in the rightdirection."

 

Ms.Sangeeta Banerjee(Co-Founder & CEO – ApartmentADDA)

"Whenit comes to Real Estate / Housing, the Budget is solely oriented towardsboosting Affordable Housing, as expected. Affordable housing defined as HouseCost up to Rs.50Lakh or Carpet Area of 300 sqft in metros and 600 sqft in othercities.. This definition varies for different benefits in the budget.For urban Apartment Communities or RWAs, a positive Budget announcement is forthe Govt will Undertake important reforms by providing legal framework fordispute resolution and re-negotiations in PPP projects and public utilitycontracts.Many Apartment Communities or RWAs wish to build or maintain public amenitiesin their neighbourhood in partnership with Govt. This could be Parks, Lakes, oreven Last Mile Roads. A robust PPP framework as well as dispute resolution willmake this a win-win for the Gov as well as forward-thinkingneighborhoods."

 

Mr. SunilGupta , Founder & Director, ExportersIndia.com

"With“Transform, energise, and clean India, that is Tech India” this budget hasupped allocation for rural, agriculture and allied sectors by 24% has openedscope for increasing investments and yielding multiple benefits. The rapidgrowth in manufacturing sector is a good sign for overall economy. The new FDIpolicy is a welcome move. MSMEs and start ups have all the reasons to cheerwith a dip in income tax to 25% for companies with an annual turnover of Rs.50crore. Their grin grows wider with the FM proposing dip in bank lending rates.Incentives such as cash backs, referral schemes on BHIM app is all set to pushthe use of digital transactions which is yet another reason for MSMEs to moveto online business models. The lowering of Income tax would also increase thespending capacity which will benefit the SMEs."

 

Mr.Vishwavijay Singh ,Co-founder, SaleBhai.com

"Thehero of the Union Budget 2017 is definitely the rural sector, with financeminister Arun Jaitley allocating Rs 1,87,223 crore for rural-agridevelopment. He spoke of doubling farmer income in five years,keeping agriculture credit at Rs 10 lakh crore, and increasingcultivation area for kharif and rabi crops among a slew of forward-lookingmeasures. Another important feature of the Budget is the Government's resolveto ramp up infrastructure, which should help in taking forward the government'sDigital India campaign. As an e-commerce player, I see consumption in ruralareas going up. With rural areas likely to witness greater digital penetration,the e-commerce sector is surely to benefit."

 

 MrAditya Loomba, Joint Managing Director, ECO Rent A Car 

The budgetwas ore or less as per my expectation, as it focused mainly on infrastructuregrowth like roads, sanitation, affordable housing etc

It alsofocuses on implementation of recent demonetization and digitalizationpolicies.The HNIs will be taxed more and the tax burden on lower-mid incomewill be reduced.There was also some tax relief for small businesses which Ifeel is a good initiative.Personally, I wished there could have been more focuson our Tourism and Hospitality industry as it has a much greater potential forgrowth and needs suitable investments.We are a large country with an amazingpotential for tourism. If the tourism grows, it has cascading benefits onEmployment, GDP and general image building of our nation.

MrShrutam Desai, CO-Founder, Onlymobiles.com

However,there are no direct announcements made with respect to e-commerce sector, iwill call it a muted budget but the expectations were also on lower side as weare expecting major reforms only during the GST announcements and subsequentrollout. there are two notable announcements made which will eventually helpe-commerce companies (esp those who are in nascent stage) - 01) reduced incometax for people whose income is less than 5L - this will increase the net incomeof the salaried class and may help to increase the consumption. 02) reducedcorporate tax from 30% to 25% - with annual turnover of less than 50Crore 

However, weshould also note that ample focus have been placed on improving infrastructure- which eventually bring down the logistic expenses for the e-commercecompanies. the result may not be visible in short period but it is govt’smessage that they are prioritising the transportation sector. 

 

Ms. NehaBagaria,Co-Founder & CEO,JobsForHer (connectingportal that enables women on a professional break to restart their career) 

"I’mhappy to see the Government address the issue of training and skilling women withthe introduction of Mahila Shakti Kendras aimed at empowering women.Encouraging more women to join the workforce is critical to India’s ability tobenefit from the demographic dividend.

We willhopefully see an increase in female participation in the workforce, with theGovernment increasing allocation for women’s skill development to Rs 1.84 lakhcr for FY’18.

We aremoving in the right direction with these Government led schemes aimed atincreasing the Labour Force Participation Rate (LFPR) for women. This is vitalto achieving high growth of employment and overall economic growth"

Mr.Dinesh Goel,Co-Founder & CEO,Hunarr.co,in (Online training aggregator connectingtraining seekers to training providers)

"Budget2017 seems to be positive for skill development in the country. Setting up of100 India-International skill centers for advanced training will certainly helpmore Indians compete in the international market. Programs likeSwayam will make it easier to ensure quality education, from the bestfaculties in the country, reaches a wider audience. Allocation of Rs.1.84 lakhcrore in women skill development is also an extremely welcome move. A centralnational testing agency to conduct all higher education exams will free up alot of resources for boards like CBSE to put more focus on the curriculum andp reparing students for college and ultimately their professional life" 

 

TakingEase of Doing Business from India to a Digitally Healthy Bharat - DineshAgarwal, Founder and CEO,IndiaMART.com

The budget2017 has laid a foundation of an enterprise and business pro India. Importantfactors to boost GDP are thought of the Union Budget 2017. Most importantelements such as young demographic dividend, skill development, womenemployability, digital education, transport have been well accounted for. Also,it is reflected that the burden of taxation is more evenly split with alldemographies of the society.

It is a goodyear for SMEs, India’s backbone given the direct and indirect reforms announcedfor them. 5 special tourism zones will enhance MSME development and bolsterschemes for employment in textile, transport, agriculture, leather andhospitality sector. The SMEs in pharmaceuticals and logistics are bound toexperience accelerated growth as Healthcare hold high on Arun Jaitley's agendain the Budget 2017. Ease of Doing Business for SMEs will thrive with push forinfra in digital economy, Aadhaar-enabled payment systems, m-wallets anddigital payments.

A lowerborrowing cost and increased access to credit is on the anvil as a result ofthe government policy on currency and Banks being well nourished. With FIPBbeing abolished and maximum FDI coming from the automatic route it will aiddiversified business. MSMEs with annual turnover upto Rs. 50 crore will have topay only 25% tax. Tax exemptions will be a relief to our working class andpromote digital economy and affordable housing.

Toincrease  digital payments acceptance cash purchase and payments forrevenue and capital expenditure limited to Rs 10000 for businesses, is a verygood move.  Even for individual or personal consumption a limit of Rs 3 lakh has beenimposed on cash.  Both will help generate more transparency and thus more revenue in times to come.  I would call this move to be even betterthan demonetization. 

For manymicro sized businesses the Presumptive tax rate has been reduced from 8% to 6%for non-cash receipts of upto Rs 2 Crore is also very good and would lead toless cash and transparency as well as help in broad basing the taxbase. 25% higher budgetary allocation for spending on  infrastructurewill also be a  big boon to job creation and economic revival.  Thebetter infrastructure will help in doing business. 

 

Ms.Debadutta Upadhyaya (Co-founder, Timesaverz.com)A Budget less on Micro economics and more on Macro economics. Reduction of Income tax rate from 10% to 5% for individuals in income bracket2.5 lacs to 5 lacs is an incentive for honest tax paying individuals.Compensated with surcharge of 10% on Individuals for whose annual income isRs.50 lacs to 1 crore - Super rich definition has been widened.25% corporate tax rate for MSME's with 50 crore turnover, - Indian Companies to benefit. Not much for Big players.Government to cut or eliminate excise duty on manufacturing of micro ATMs,finger print readers, biometric cards and PIN cards and further, import duty may also be reduced on components used in the manufacturing - Good move which would pave way for E commerce start ups to explore and expend less on these machines to go DIGITAL" 

Mr.Sanjay Shroff, Managing Director & Founder, Styletag.com

"Thebudget has an eye on fiscal prudence . The boosts towards infra spends and railway safety will show results in times to come.  The focus onagricultural and rural development is welcome. Beginnings towards rationalization  of taxes both for corporate and  individual incomes is a step in the right direction. This will help both the common man which falls under the middle income group and the smaller companies.The move towards cleaning up political funding is very welcome. For us personally, from an e-commerce industry point of view, the demonetization and the thrust on digital economy is very promising. Itwill open up further opportunities and a wider market for us.The ceiling of 3 lakhs on cash transactions will also go a long way in ensuring better compliance and shift  towards the digital economy." 

Ms. Shilpa Divekar Nirula, CEO, Monsanto IndiaRegion.

“The Union Budget 2017 hasfocused on India’s agriculture sector and the country’s farmers to drive growthin rural India while continuing to propel the nation’s economic engine. 

Credit is an importantinput to improve agricultural output and productivity and attempts to expandfarm credit across rural India is a welcome move. In addition, increasedfacilities for irrigation through the “Pradhan Mantri Krishi Sinchai Yojana”, adedicated irrigation fund, augmented access to crop insurance under the“Pradhan Mantri Fasal Bima Yojana” are admirable interventions aimed atdoubling farmer income. Irrigation and farm credit remain key pillars that willstrengthen farm productivity, help in managing risks and maintain the uptrendin the agriculture sector’s growth. 

We lookforward to effective implementation of these announcements and remain confidentthat the government will enable a policy environment which will keep the bestinterests of India’s farmers in mind.”

Mr. M.K.Dhanuka, Managing Director, Dhanuka Agritech.  

“The Government’s effort towards givingspecial focus on the rural economy is a welcome step. The Agriculture sector isexpected to grow at 4.6% in 2017-18 over the previous year and Rs 10 lakhcrores as credit to farmers will fuel this growth which is good news for theagri and allied sector players. The flagship program of PM Shri Narendra Modifor farmers - Fasal Bima Yojna is a major step to secure farmers againstnatural calamities. Fasal Bima Yojana coverage is to be increased from current30% to 40% in 17-18 and 50% in 2018-19. Setting up of soil testing labs in KVKsis another boost for the agriculture sector. These labs would help farmers toassess the actual nutritional requirements for their farmland and limitunnecessary expenditure on fertilizer. Additionally the micro-irrigation fundwill benefit lakhs of farmers to proper and systemic irrigation facilities. 

The Government’s commitment to double farmer’s income in fiveyears will improve farmer’s financial condition. Allocation of Rs. 23000crore for PM Awas Yojna, setting up dairy processing infrastructure fund &plans to make 50000 gram panchayats poverty free by 2019 clearly demonstrategovernment’s thrust for agriculture & rural development.” 

 Mr. BijayAgarwal, MD, Salarpuria Sattva Group

‘Budget’ with afocus on the real estate sector. 

“The Union Budgetis inclusive and progressive. It will put the country on track for vibranteconomic growth in the future. We welcome the government's step towardsimproving the existing road infrastructure and the new metro rail policy isright step to enhance connectivity and decongest urban areas. 

Now, withaffordable housing being provided an infrastructure status, it will give animpetus to the Central Government’s mission of achieving ‘Housing for All by2020’.  Further, change in the unit area from built up area to carpet areawill bring more projects under its ambit and extension of completion timelinefrom 3 years to 5 years is a welcome step. 

Also, clarificationon the taxability on JDA transactions arising only in the year of completion ofthe Project is big relief to the real estate sector. 

Relaxation on LTCGon immovable property by reducing the holding period to 2 years and shifting ofbase year to 2001 for the purpose of indexation will bring down the capitalgain liability in the hand of the owner and liquidity will improve. 

However, we wouldhave appreciated further reduction in interest rate & increase in exemptionlimits for home loan buyers. 

All in all, wewelcome the budget’s underlying theme which has the vision for good governanceand overall growth of the economy.” 

Mr. Sudhakar Reddy, CEO and Founder,Abhibus.com 

“Road andhighways are one of the most important components of infrastructure and hasalways been the focus of governments. Increased allocation for NationalHighways and moves to set up 5 special tourism zones in partnership with Statesare positive announcements for our sector. 

Withdrawalof service charges on e-tickets booked via IRCTC, focus on digital infradevelopment and announcement of AadhaarPay are positive moves for entire travelecosystem. As Finance Minister emphasized cashless reservations have gone up.Post demonetization, we too have seen significant rise in online ticket bookingand digital payment. We are confident these moves will help the sector to keepup the momentum.” 

Mr. N. K. Prasad, President &CEO, CAMS  

Unionbudget’s focus on addressing growth with a tilt towards rural andinfrastructure spending while keeping fiscal prudence intact is directionallypositive for the MF industry. Fund industry has been witnessing seculargrowth cycle for last three years with industry AUM doubling. Industry iswitnessing sustained interest of investors evidenced by growth of investoraccounts, systematic investments, and growth in B 15 cities. Retail lead growthpotential for MF industry is enormous and MF industry is investing in investoreducation & awareness. 

Union Budgethas withdrawn RGESS targeted at growing retail investor base, which was notpopular with retail investors who found setting up Demat accounts cumbersome.Govt.’s intent to creating new ETFs with diversified CPSE stocks and possibleinclusion of railway units like IRCTC, IRFC, IRCON proposed to be listed isfavourable for MF industry. ETFs comprised of diversified CPSE stocks would bepopular with new retail investors if such investors could be served by theAsset Management Companies instead of insisting on Demat accounts. Mutual Fundshave been serving large number of investors not holding MF units in Demataccounts but transacting via stock exchange platforms used by trading membersas well as limited purpose members. Mutual Funds have established investorservicing infrastructure with extensive linkages to Stock exchanges, SettlementCorporation and brokers operating on stock exchange platforms over severalyears without necessity of investors setting up Demat accounts. Such a modelwould make ETFs popular with  

Kalpana Sampat, CEO, Swiss Re India Branch 

“Increasing allocations for Fasal Bima Yojana andtargeting greater insurance coverage is a positive move to close the protectiongap in agriculture. A robust crop insurance framework is an important steppingstone towards food security and financial stability for farmers. Efficientirrigation is the need of the hour and the dedicated micro-irrigation fund isalso a welcome move. Finally, the health action plan is an importantacknowledgment that the country needs to improve access to health care.” 

Jonathan Anchen, Head of Economic Research &Consulting, India, Swiss Re 

“It is a balanced budget with several measures to easethe process of doing business. This will positively impact economic growth. Theinitiatives to incentivise manufacturing, clear red tape for foreigninvestment, institutionalise the dispute resolution mechanism forinfrastructure projects, higher allocation for highways, etc, are very positivesteps. The digital economy too will get a strong boost with high-speedbroadband connectivity on optic fibers, and encouraging digital transactions.” 

Dr. Raghupati Singhania, Chairman & ManagingDirector, JK Tyre & Industries Ltd 

The Budget is optimistic and realistic, butshould have addressed the anomaly of the Inverted Duty Structure

 “From a macro pointof view, the Budget presented by the Finance Minister is a growth-oriented onewith special focus on rural, agriculture and infra sectors. 

Demonatisation in November 2016 resulted in a generaldownturn in the economy, but rural sector in particular bore the brunt.Allocation of record credit of Rs 10 lakh crore, along with a major push to therural sector with 25% rise in MGNREGA allocation, with special focus onimproving roads and electrification, no doubt, will not only ease the pain inthis sector, but give it a fillip. This is indeed a welcome move which should,in due course, improve the rural economy and thereby rural spending. 

Nearly Rs 4 lakh crore has been apportioned for investmenton infrastructure of which Rs 2.5 lakh crore is on transportation alone. Ifexecuted well, this has the potential to provide a serious push to the economyand the Auto sector. 

Significantly reduced tax rates for small taxpayers ofincome up to Rs 5 lakh, as also some reduction in corporate tax for the MSMEsector will provide demand impetus. 

However one area that India Inc was really looking forwardto was reduction in the corporate tax rate as promised by the FM in his Budgetspeech two years ago, but there is no mention of it, which is a matter ofconcern. 

No doubt, the Government has adopted a balanced approach byprojecting a fiscal deficit of 3.2% of the GDP and diverting the liquidityarising out of the demonetization to public spending with a view to spurgrowth. However, for sustainable growth in the economy, private investmentsneed a fillip.  

Talking specifically about the Tyre sector, we wereimmensely hopeful that the inverted duty on rubber will be addressed in thisBudget in view of the Government’s avowed move to increase value additionwithin the country. However, it is indeed disappointing and a matter ofcontinuing concern that natural rubber again doesn’t find mention amongst the itemson which duty inversion has been corrected.” 

 Dr. Raghupati Singhania, Chairman & ManagingDirector, JK Tyre & Industries Limited 


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