Despite the imposition of 10% import duty on import of Newsprint in Budget 2019, various other announcements like opening up of FDI in Media and Animation, VFX, Gaming and Comics clubbed with pro start up measures like launch of an exclusive TV channel for Startup, skill development program on AI, IoT and Big Data has cheered the digital ecosystem.
Industry leaders line-up the reson for their cheers and thumps up towards the first budget of Modi Govt 2.0:
Sameer Makani, Co-Founder and Managing Director, Makani Creatives, said, “The policy changes and developments announced in the Union Budget today will definitely bolster innovation and growth. The advertising and digital industry needs an additional skilled workforce. The proposal to train 10 million personnel in industry relevant skills like AI, IoT and Big Data is a welcome move. This investment will result in creating jobs and also boost long-term growth for the digital industry. Also, the overall economic development and ease of business proposed will encourage Indian and international companies to invest more in allied functions like advertising and promotions. This will have a positive impact on our sector and is likely to generate more growth and business.”
On the budget’s impact on the advertising, marketing and startup ecosystem, Bindu Balakrishnan, Country Head, DCMN India, said, “The much-awaited Union budget that was presented today came with some good news for the start-up industry in India. The government took some concrete steps to ease the challenges that start-ups are facing. The biggest step was taken in resolving the angel tax issue by withdrawing the scrutiny of start-ups in terms of valuation of share premium. Setting up of an e-verification for source of funds of investors would ease the processes on the investor side as well. These steps along with the broadening of the age cap for companies to qualify as start -ups from 7 to 10 years would also give a breather to many young companies, including digital first brands. With these new regulations in place, we can hope to witness an even bigger surge in the number of new start-ups. The government has ambitious plans to set up 500 new incubators and 100 innovation zones across India by 2024. The other welcome development has been the focus on enhancing FDI in certain industries, especially media. We will have to wait and see how this would play out in the coming months and the impact it would have on various media across TV, Radio, Print, Digital etc.”
Yogesh Mudras, MD, UBM India, said, “The proposed initiatives by the government to develop world-class 17 iconic tourism sites will draw the attention from international as well as domestic tourist. These destinations will boost and will improve the investment in the travel and tourism industry especially by the millennials who have the spending power.”
“The budget also focuses on connectivity in rural and urban places which will boost and help tourism market and provide great potential to grow in the near future. These initiatives will also move the needle for the MICE industry which has been growing exponentially over the years and has scope for record growth. In continuation government to spend Rs 100 lakh crores is a big boost to infrastructure this will also bolster MSMEs sector growth. The opening up for FDI in the sector of aviation is an additional buoyancy for the travel and tourism sector. The overall budget seems good and it will surely enhance and run the economic engine.”
Communication expert, Akshaara Lalwani, Founder & CEO, Communicate India, said, “The budget 2019 certainly has growth at its focus, especially for women entrepreneurs. The Government’s scheme of extending interest subvention and loan incentives to women entrepreneurs, is also expected to open many doors for them, paving the path for increased ease of doing business.”
“The key reform that will foster change would be the adoption of new payment portals curated for MSMEs. This will definitely fast track the growth and development for small and mid-size industries, and motivate entrepreneurs to scale greater heights. Another key factor giving a boost to startups is the launch of an exclusive TV channel, which underlines a contemporary approach towards using media as a growth driver.The budget has also exhibited that sustainability is at its heart, with the Government’s efforts in rendering change through Swachh Bharat 2.0. This certainly a need of the hour.”
Bhairav Dalal, Partner & Leader – Real Estate Tax, PwC India, said, “Overall, a forward-looking Budget for the real estate sector. Laying down a roadmap for Rental Housing is a step in right direction to align with global trends of co-living spaces, given the changing demographics in the country. The increased thrust on education is likely to boost the Student Housing asset class. Aligning the affordable housing definition with GST and may lead to certain ‘under planning’ project developers to go back to the drawing board.”
Rajarshi Bhattacharyya, Country Manager, SUSE India, “We welcome the Government’s move in promoting Digital India, Startup India and other initiatives which are positive steps for the economy. It is evident that with focus being put on skilling the youth in technologies such as AI, Robotics & Big Data, the Government is reinforcing the importance of digital innovation. The upcoming generation will be a driving force of the economy, knowledge of deep technologies will help make them employable and bridge the gap between demand and supply of talent. Open source companies like SUSE can be benefited from this talent pool, and be encouraged to work and support the nation and enterprises towards becoming globally competitive.”
Vipul Mathur, CEO, MUFTI, said, “With labour also forming a key component of the retail sector, the replacement of multiple labour laws into a set of four labour codes will streamline processes, ensure standardize and ensure uniformity towards operations. They will provide security, better industrial relations and above all better health and working conditions for workers, who are the very backbone of what this industry has based its foundation on.”
He added, “The honorable Finance Minister made some relevant points related to the tax policies, one of the biggest highlights seen was the widening of the lower tax slab, that now extends to companies with an annual turnover of Rs. 400 CR. This is highly important for the corporate sector as it will now cover as much as of all companies. With most of these companies facing hindrances with respect to their tax rates, this is a welcome boon to the industry as they will be able to operate in a more seamless manner.”
