Finance Minister Arun Jaitley presented Union Budget 2016 in the Parliament with the key statement, “We converted challenge into opportunity.”.As per the budget plan corporate tax was shortened by 5% and service tax remained unchanged. Jaitley has relaxed the FDI policy in several sectors to attract more overseas investments. He also adhered to the fiscal consolidation roadmap by proposing to keep the deficit at 3.5% of GDP in 2016-17. Let find out how the industry experts react on Jaitley’s Budget.
Dilip Piramal, President, Indian Merchants’ Chamber said to Supportbiz, “As widely expected on the basis of indications available in recent days, Arun Jaitley in his Union Budget 2016-17, has sought to give a fillip to the critical area of agriculture, education, health, and infrastructure.”
Niranjan Hiranandani CMD, Hiranandani Group, and President National Real Estate Development Council believes that the budget has focused diversified activity. He shared exclusively to Supportbiz that “First of all, it has given the salaried people a huge benefit as the home loan deduction of 24,000 has been increased to 60,000. The small house pier has been benefited but the small house pier is as small as 30sq.mtrs for cities like Mumbai, whereas, for the rest of the cities it has set to 60sq.meters. I will request to Finance Minister Arun Jaitely to set 60sq.m for all the cities because 30sq.metrs will force Mumbai residents to live in ‘jhopper patti’(slums) once again. Second is the biggest rate of the infrastructure bond segment where dividend tax system should be removed which is a paradigm. The expectation was definitely high though I think it is just the beginning. Different sectors have different views on the budget but from real estate sector, I would say it was medium.”
Vijay K Thadani, Vice Chairman & Managing Director, NIIT Ltd mentioned, “We welcome the focus on education, skills, job creation and entrepreneurship in this budget. Emphasis on promoting excellence in higher education on a level playing field by identifying 10 public and 10 private institutions is a good move.
Digital repository for validation of qualification will provide a great boost to high employment industries, such as the IT sector. Also, up gradation of National Career Services will produce more effective connection of jobs with skills.
The maturity of digital technology and its role in the society is visible from the fact that MOOCs will be used for mentoring new entrepreneurs.”
Danish Ahmed, CEO, Shopsity, also known for co-founding Yebhi.com stated, "Allowing retailers to open 24x7 is a very good move, in an otherwise regular budget. Night shopping in the middle east, shopping between 8 pm to 12 am contributes significantly to overall sales and similar trends will develop in India, boosting overall retail, especially in summers."
Prasoon Gupta, Founder and Director, Sattviko believes that the 100% deduction on profits for startups for 3 years will not help them much as not all the startups earn profits initially. “Entrepreneurship, Education, training to be provided through Massive Open Online Courses will help the aspiring entrepreneurs from remote areas, who don't get sufficient knowledge and guidance. Many sunrise industries including tourism and hospitality were expecting sector specific announcement in this budget," he said.
According to Kishore Ganji, Serial Investor, Founder & CEO, Zip.in, “The news about 100% FDI in food products produced and marketed in India spells a ray of hope for the food industry and the online grocery sector in particular. In the midst of farmer unrest, this development will successfully address their concerns by ensuring that their fruits and veggies get the right price and are delivered to the final sale points in the markets without any glitches.”
“With the intervention of FIPB, the food processing industry and trade will surely see a boost. Keeping all this in mind, we’re sure we will be able to add more home-grown products on our platform that were originally losing out due to poor publicity and management, added he.
Govind Bansal, Co-founder, Aqua Mobiles leading mobile manufacturing company (Telecom Startup) said “Apart from 30 - 35 percent relaxation in the corporate tax and a reduction in the import of IT and Hardware products, there is nothing to boost the mobile phone industry of India. We were expecting some good reforms in the structural changes, easy registrations, and approvals, etc. The budget is not in the line of ‘Start-up India, Stand up India. It is good for the Agriculture sector, but nothing has been offered to the manufacturing and trading businesses.”
Tarun Wig, Co-founder, Innefu Labs an IT Start up company (IT Startup) said “Up to 35 percent of corporate tax relaxation and 100 percent hike in the exemption limit for the MSMEs are good incentives by the FM, but it is not in the line of promises made by Mr. Jaitley on January 16, at the launch of Start-up Indian Campaign. Rather, the most admirable decision is the incorporation of an integrated data analysis system in the financial sector, that will really expedite the banking and financing activities. In addition, decreasing custom and excise duty on IT and hardware will definitely boost the industry.”
Rahul Jalan, Director, Indiaonline.in the largest local search engine (IT Startup) said “As finance minister describes Indian Economy a bright spot in a gloomy global landscape, the proposed Digital Literacy Scheme for Rural India and allocation of Rs. 1,700 crore for 1500 multi-skill development centers and the increase in the exemption limit from 1 to 2 crore for the MSMEs are really the initiatives that will help motivate the small businesses even in the smallest towns and villages.”
Sandeep Agrawal, Founder & CEO, Droom said “This budget is far from the reforms expected. In the startup ecosystem, entrepreneurs and emerging businesses were hoping for some exciting announcement to encourage entrepreneurism and innovations. However, the silver lining was the announcement for women and SC/ST entrepreneur with Rs. 500 crore allotments. As an entrepreneur, I was hoping that govt will include following:
· Capital for entrepreneurs should be more accessible and cheaper
· Some tax benefits for start-up in terms of capital gain and dividend taxes
· Offering R&D credits and lower costs for innovations”
Anish Basu Roy, Co-founder & Chief Enabling Officer, Shotang said “I think the various tax holidays and exemptions announced today for startups are a step in the right direction. However, clarity is still awaited on the amendments to the Companies Act which are much needed. Ease of doing business as a startup in India needs to go up considerably, especially in areas such as statutory compliances, raising capital and accounts & audit.”
Neeraj Jain, CEO &Co-founder, Zopper said “I think overall budget is very good. The finance minister has tried to balance short and long-term objectives. The govt has sent a very good message by promoting women entrepreneurship. It is also serious about 'Skilling India' which again is a core requirement to have a flourishing startup ecosystem in the country.”
Soumitra Gupta, CEO, Togofogo said “We appreciate the Finance Minister’s move on Tax holiday for startups as every startup takes minimum three of five years to setting up the company. We welcome the effort by the Indian government for startup industry. It will give a strategic boost to the current ratio of Indian entrepreneurs and will support the Startup India campaign by Modi Government.”
R Narayan, Founder, and CEO, Power2SME said, “Measures such as lower corporate rate for small enterprises, increased turnover limit under Presumptive taxation scheme under section 44AD of the Income Tax Act for assesses in MSME category and few others are welcome to move to SME players.
Extended allocation of money towards Skill India, changes in customs and excise duty rates on certain inputs, the introduction of Model Shops and Establishments Bill, that allow small, medium shop owners to do business 24x7, are some measures that will improve competitiveness and boost domestic demand.”
Nilesh Aggarwal and Amit Sharma co-founders of eMediNexus, said, “We were particularly hoping for the focus on healthcare education, which is the major bottleneck to increasing the supply of healthcare provision in the country. These include freezing accreditation standards for continuing education, increased incentives for the pursuit of further medical studies, and solutions to the chronic lack of educators at medical colleges across the country”.
Picture courtesy: linusb4 (freeimages)