The Union Budget coming in the wake of COVID 19 has been given thumbs up by the industry. There is a huge boost for healthcare, infrastructure, start-ups, Education Sector and Insurance. This will in turn increase spends and also bring in a positive consumer sentiment.
Views of Industry Leaders across sectors:
Kumar Gaurav- Founder and CEO, Cashaa
Strengthening the financial scenario definitely stood at the top of the priority list. Hence, the announcement of the ease of establishment of the financial institution is a great move. Also, embracing the technologies like AI and ML is the need of the hour. However, we expect the government to enhance the financial system and create more jobs by welcoming blockchain and cryptocurrency. India has become a key crypto market in less than a year since the Supreme court uplifted the ban. The Indian government can be at the forefront of crypto regulation, to be adopted worldwide. Smart regulations can help eliminate scams and enable legitimate businesses to thrive, assisting the government’s ambition for a digital India to flourish.
Farooq Adam, Co-Founder Fynd
The union budget of the year 2021-22 is the most crucial Budget of India in recent years. With government focus on reviving the economy and lessen the burden. They have given a good push to Infra Development which will help in India’s overall development, leading to more employment, improve supply chain and logistics. There were expectations that the government would broaden some tax advantages through Budget but there was no change in tax slabs. Overall glad no surprises on personal income tax. As far as the start-up industry is concerned, we welcome the policies introduced by FM but they are not path-breaking.
Milan Thakkar, CEO, Walplast
It is encouraging to see the government has doubled its allocation towards the MSME sector by setting aside Rs 15,700 crore in FY22. This combined with the allocation of PLI schemes of Rs 1.97 lakh crores over 5 years along with increased allocation towards infrastructure improvements in the form of highways and roads will help the MSME sector. We also are looking forward to the Bill for the Development Financial Institution that the government is planning to introduce and how it will help the MSME sector as well.
Keerthivasan Subramanian- Founder & CEO, Playtoome.
Early-stage startups have been looking for opportunities to grow. Post pandemic it became more challenging to get financial support for many entrepreneurs. Plans had come to a halt for the ones at the concept stage. A lot of Indian startups would look for investors outside India. As per the budget 2021 announcement, NRIs can now incorporate a one-person company. This means that it would be easier for NRI investors to operate and fund the budding entrepreneurs within India. This is good news.
Puneet Gupta, Founder of AstroTalk – Leading Astrology Application in India
This year’s budget has taken a number of steps to promote and support startups. As opposed to last year’s allocation, this year’s budget has allocated Rs 15,700 crore to the sector. Not just this, it has also emphasized on creating a separate framework of Data Analytics, Machine Learning (ML), and Artificial Intelligence (AI) to assist the companies. Further, to mitigate the lost months during the COVID-19 pandemic, FM NirmalaSitharaman also proposed to incentivize the incorporation of one-person
companies without any limit on paid-up capital to help startups and innovators. All of it was much needed to boost entrepreneurship in India and promote Aatmanirbhar Bharat.
Alok Patnia, Managing Partner, Profit Board Ventures
FM NirmalaSitharaman extends tax holidays for startups by one year, till March 2022* To help India Inc’s start-ups in beating pandemic blues, the FM announced a tax holiday extension by one more year to Mar 2022. The existing provisions of section 80-IAC of the said Act, inter alia, provide for a deduction of an amount equal to one hundred percent. of the profits and gains derived from an eligible business by an eligible start-up for three consecutive assessment years out of ten years at the option of the assessee subject to the condition that the total turnover of its business does not exceed one hundred crore rupees for an eligible start-up incorporated on or after the 1st day of April 2016 but before the 1st day of April 2021.
Apart from the tax holiday, Sitharaman also informed that the government proposes to incentivize the incorporation of one-person companies (OPCs), a move that will benefit start-ups and innovators.
This is likely to attract more investment outflow in start-ups. With proper planning, more investment inflows can also help in reducing the fiscal deficit.
Rupa Barua, Managing Partner & Director, The Brand Quest
The focus of the Union Budget 2021-22 was prepared under circumstances never seen before. The Budget 2021, it’s a mixed bag for us. While the budget vision takes a lead on self-reliance and features every section of society. The extension of tax holidays for start-ups and capital gains will also spark greater capital activity in the investment landscape and serve as an enabler of robust early-stage venture funding for start-ups. In a big boost for startups and incentivize incorporation of one-person companies, such companies will be allowed to grow without any restriction on paid-up capital or turnover and to convert into any other type of company at any time. Apart from this, the government has given a huge aid to home buyers. Presumably, the real estate sector will accelerate. Overall, this is an ambitious, growth-oriented budget and the government has tried to ensure that the economy receives the impetus it needs to go back to a respectable GDP growth level.
Anshul Singhal, Managing Director, Welspun One Logistics Parks:
The government’s focus on capital expenditure and infrastructure development will be a shot in the arm for the warehousing and logistics sector in the country. The proposed Development Finance Institution will act as a provider, enabler, and catalyst for infrastructure financing. Also, the budget has earmarked a sharp increase in capital expenditure at Rs 5.54 lakh crore in 2022, from Rs 4.39 lakh crore in 2021. A planned boost to road infrastructure across the country and seven port projects will aid in job creation and income generation. Overall, the large-scale infrastructure augmentation coupled with asset monetization program of the core. infrastructure assets will go a long way in realizing the national infrastructure pipeline, thereby benefiting the logistics sector.
Zahara Kanchwalla, Co-founder & COO, Rite Knowledge Labs shares
The focus of this year’s Budget in building digital infrastructure, be it India’s first digital census to micro agri-funds and plug & play textile parks, will benefit the communication and digital industry significantly. The focus on transparent and citizen-friendly initiatives such as one nation, one ration card, and faceless resolution will ensure that technology and content are available to more people, giving a fillip to apps, websites, educational content, and online platforms. The move to incentivize digital payments will ensure that the acceleration towards speedy, secure, and convenient payments spurred by COVID-19 becomes permanent, and helps in enabling a cashless economy. For startups, the tax holiday extension by one year is a big boost to help new businesses accelerate recovery and rebound.
She further adds that the increased MSME outlay of about $2 billion (INT 15,700 crore) for small and medium enterprises will help digital and content agencies ramp up through investments in people, software, and products. I’m glad that the budget has laid the foundation for a modern, digitally safe yet future-ready eco-system. It will help India become globally competitive with a focus on harnessing its intellectual wealth, scaling knowledge-driven industries, and building product-centric solutions while elevating small and medium businesses.
Divij Bajaj, CEO, and Founder of Power Gummies (Aesthetic Nutrition Pvt. Ltd).
The Union budget 2021-22 announced is majorly inclined to boost the healthcare and infrastructure sector and towards being a self-reliant yet healthy India. With my brand, Power Gummies, I aim to provide hassle-free and tasty health spreading happiness in the form of gummies to better India’s health. Talking from the perspective of the healthcare industry, this budget seems positive and will help open doors to new opportunities. A nation that stays healthy leads the world and aces productivity.