New Delhi, Delhi, India | 1st February 2020:
Real Estate
Mr. Prashant Solomon, MD, Chintels India and Hon. Treasurer for CREDAI NCR – “With the lowering of personal income tax, the middle-class and millennials will have more disposable income, thereby spurring spending and growth in the economy which will in turn also reflect in residential purchases. Affordable housing segment has also got a boost with the Hon’ble FM proposing to extend the tax holiday by one more year. However, the Budget leaves much to be desired for the real estate segment with no reduction in interest rates on home loans, no incentives for other segments beyond affordable housing, no announcements on single window clearance and industry status for the sector.”
“The Budget has acknowledged start-ups as the growth engines of the economy and proposed tax benefits for the sector through deduction of 100 per cent of our profits, increased turnover limit and period of eligibility. The reduction of personal income tax will increase spending power and spur growth in the economy and the real estate segment. The Budget has also focussed on the affordable housing segment with the Hon’ble Finance Minister proposing extension of the tax holiday by one more year,” – Rohit Malik, Founder and CEO, Clicbrics.
Technology
CP Gurnani, MD & CEO, Tech Mahindra, said, “With a thrust on talent, technology and entrepreneurship, Budget 2020-21 is a promising budget in support of making India’s $5 trillion economy dream come true. It is heartening to see initiatives that are aimed at enhancing digital penetration in the country by making Fibre to the home (FTTH) accessible to 100,000 Gram Panchayats via Bharat Net, which will go a long way in bridging the digital divide. Also, the decision to build data centre parks for the private sector is another step towards making India a data economy superpower. Furthermore, strategic initiatives aimed at leveraging new-age technologies like the Internet-of-Things, machine learning, robotics, bioinformatics, quantum computing and artificial intelligence across sectors will further help in laying the foundation of a robust, digital economy.”
“The 2020 Budget has been drafted around the key themes of talent, technology, entrepreneurship and sustainability and we applaud the Centre’s efforts at boosting the economy. The Hon’ble Finance Minister has maintained focus on tourism by announcing that iconic destinations will be connected by “corporate” trains like Tejas and with the plan to develop 5 archaeological sites into iconic sites. Five new smart cities have also been proposed and Barco looks forward to partnering with the Government in this direction,” says Rajiv Bhalla, Managing Director, Barco India.
Auto
“We find Union Budget 2020 to be a reasonable one with strong measures and good intent. Tax benefit for the middle class makes life easier for the common man and leaves more money in the hands of the consumer. Decriminalization in the Companies Act is a major positive that Corporate India will welcome. No reduction in GST rate for vehicles is a dampener for us,” Mr. Sharad Malhotra, President – Automotive Refinishes and Wood Coatings, Nippon Paint India.
Education
“With umpteen focused initiatives like – FDI, emphasis on new skill development and entrepreneurship, launch of new online degree courses/apprenticeship programmes and allocation of Rs. 99,300 crore for world-class education, Budget 2020 will help position India as a global educational hub. We appreciate the launch of the ‘Study in India’ programme which will enable foreign students to apply for scholarships to study in India. Overall, we believe that this renewed push on providing quality education and enhancing the skills of our youth, will help India play a lead role in shaping the global economy in the future,” – Mr. P K Gupta, Chancellor, Sharda University.
“Budget 2020 truly sharpens the country’s focus on becoming the next global hub for education. Significant announcements like the introduction of FDI in the education sector, launch of ‘Study in India’ programme, new apprenticeship programmes and online degree courses, besides the continued budget allocation for skill development, reiterate the government’s commitment towards the youth of our country. I am confident that these strategic initiatives will play a decisive role in the building of a New Digital India,” – Dr. Sanjay Gupta, VC of World University of Design.
Healthcare
“In the Union Budget 2020, we welcome the increase in allocation of 69,000 crore for the health sector with 6,000 crore in PMJAY Ayushman Bharat scheme, with special emphasis on viability gap funding for setting up hospitals in the 112 aspirational districts (PAN India). Welcome the announcement on converting existing district hospitals to medical colleges through PPP mode, there is indeed a huge shortage of doctors in poor state districts,” – Farhan Pettiwala, Executive Director & Head Development – India & South Asia, Akhand Jyoti Eye Hospital.
“The Budget has focused on implementing major steps to revitalize the healthcare industry and allocation of Rs 69,000 crore will definitely contribute in making India a better place to opt for good quality healthcare facilities. Additionally, the opening of hospitals in tier-2 and tier-3 cities, and diversion of proceeds from taxes on medical devices for health infrastructure development in these cities, along with targeted campaigns to eradicate evils like TB are a few other laudable steps. We look forward to collectively building a healthy, robust India.” – Dr. Ashutosh Niranjan, Medical Superintendent, Sharda Hospital.
Finance
“The Union Budget has rightly focused on entrepreneurship as a major pillar of the economy. We applaud the Centre’s proposal of setting up an investment clearance cell for end-to-end entrepreneurial facilitation. Further, the Hon’ble Finance Minister’s scheme to provide subordinate debt for MSME entrepreneurs also boosts the segment. We also welcome the Government’s thrust on sourcing external commercial borrowing and FDI financing to attract talent in the educational sector,” – Dr. BBL Madhukar, Founder, Director General of BRICS Chamber of Commerce & Industry.
“For the budget in 2020, it is a great achievement that India’s economy is 5th largest economy now. It’s very promising and the avenues for recruitment in India are more now. Now local bodies will also offer internships to fresh engineers. FM proposes a national recruitment agency to conduct online common test for non-gazetted posts which will speed up the things. The focus on AI, ML, IoT, Data Centre, etc across India is the need of the hour in today’s fast-paced technological revolution.”- Ms. Yogita Tulsiani, Co-founder, iXceed Solutions.
Neerav Jain, Founder and CEO of Cityfurnish, believes that it is very important for the
forerunners in the startup industry to come forward and share their reaction towards the budget announced on 1 February 2020. Neerav Jain said Quote.
“Increase in duty on imported furniture is good for the domestic market will give more impetus to production in India and with. The new tax structure is also going to benefit the economy by increasing liquidity in the market.” Neerav also added that “With household goods including furniture becoming more expensive the renting economy will also see an increase and benefit the users”
“We are happy that Govt is continuously focusing on Skill development and In the current budget has planned 3000 crores for the same. But the challenge still remains the end outcome making these skilled workforce employed, self employed or given some entrepreneurship opportunities. Govt has to be experimental in spending money for skill development. The intent of skill development is to develop ability in people do the associated job. Govt should find out some avenues where job or opportunity givers ( MSME or Enterprise ) have higher stake in driving the training programs across the country and enables people to earn money”. – Mr. Dheeraj Khattar, Founder, MyMobiforce – AI based crowd-sourcing platform to manage on-demand services.
“This budget as such there is no big bang Positive announcement for the banking sector; however, Insurance cover for FD has increased from 1lk to 5lk was positive. For NBFC budget extended Credit guarantee scheme. Need to see how much new tax regime could impact banks other income as banks earn healthy fess income by selling third party products (Insurance, ELSS, etc).
To support MSME has asked RBI to extend existing debt restructuring scheme from current 31st March 2020 to 31st March 2021.The limit for NBFCs to be eligible for debt recovery under the Securitization and Reconstruction of Financial Assets and Enforcement of Security Interest (SARFAESI) Act 2002 is proposed to be reduced from Rs.500 crores to asset size of Rs. 100 crores or loan size from existing Rs.1 crore to Rs. 50 lakh. This would help NBFC in recovery process for an even smaller loan.” – Mr. Jaikishan Parmar, Sr. Equity Research Analyst, Angel Broking Ltd. (Banking Sector)
“Finance minister Nirmala Sitharaman introduced new reduced tax slab for those who do not avail of any exemptions. This announcement has led to a plunge in insurance and AMC companies. This has created uncertainty of business growth of these companies, as many taxpayers generally use life insurance policies and ULIPS and ELSS to fill their quota of deductions.” – Mr. Jaikishan Parmar, Sr. Equity Research Analyst, Angel Broking Ltd. (Insurance Sector)
“It is a progressive budget with a clear push towards the socio-economic growth of the country with a focus on consumption push, MSMEs and enhanced digital connectivity. The budget touched upon almost every stratum of society with the aim of bringing greater ease of living for the citizens.
There is a visible thrust for a digital solution and emerging technologies such as AI, machine learning and data analytics, with the budget highlighting that India’s new economy is based on innovation.
Further, we welcome the government’s proposal to provide digital connectivity to 1 lakh gram panchayats. We hope that the convenience, ease, and speed of digital transactions is extended to the remotest village. Such measures shall create germane ground for decentralization of innovation and democratization of data led services.” – Uday Somayajula, Co-Founder, ePayLater.
“This year’s budget lays down several progressive measures. As the Finance Minister proposes to ease the tax burden of ESOP on employees by deferring the tax payment by 5 years, I am positive about this move and welcome the introduction of ESOP at a larger level. I hope this would result in attracting world-class talent while keeping employee costs in check. As sovereign funds have been an important funding source for startups in India, I am happy that there has been an exemption of 100% for these funds on interest payments. I believe this move will further attract more foreign funding into the startup ecosystem.
The personal income tax rates that have been slashed are interesting, as these new slab introductions and an increase in the income limit for the existing slab will immensely help address the low consumer spending and boost savings and investments for an individual.
Additionally, it’s a proud moment for entrepreneurs like us as the Finance Minister quotes us as the ‘strength of India’. Overall, we believe that this is going to give a boost to the entire startup ecosystem as the Union Budget 2020 proposes slew measures to ensure ease of doing business for Indian startups, including seed fund to support early-stage startups and investment clearance and advisory cell for entrepreneurs, among other measures.” – Shubh Bansal, Co-Founder, Truebil.
“Much needed focus on agriculture and allied sectors which should give a boost to the rural economy and hopefully lead to higher spending as farmers’ incomes rise. The emphasis given to infrastructure is another positive that will improve our economic foundations and drive productivity. The tax breaks given to SWFs to invest in Indian infrastructure will give a fillip to inbound investment flows in this area.
The government has also reiterated its commitment to the disinvestment programme with the announcement of IDBI divestment and LIC IPO. Having made all of these positive points, I must highlight that ultimately a recovery in bank lending, which has not yet been forthcoming, is a must in order to get the economy moving at top speed again.” – Bhupinder Singh – Founder & CEO, Incred
As a startup founder, I found the ESOP tax issue as the best part of this budget. It will help hundreds of startup employees to have better clarity on converting their options. The increase in tax structure is also a good move. It will allow every taxpayer to have more disposable income. It will add Upto consumption in the economy. Government of India has also announced the setting up of ‘Data Centre Parks, Fibre to home’ which will encourage a larger set of rural population to get on the internet, which in turn provides an opportunity for fintech companies in India to expand and gain access to a diverse population, by offering additional financial services to them. This will also lead to increase in job opportunities in rural regions, and aid in the government agenda of widespread financial inclusion.” – Bhavin Patel, Founder & CEO, LenDenClub
“Talent retention has been a major concern in the Indian startup ecosystem. The ESOP clarity in the budget has been the best move in the budget since it will help startups to retain talent and aid employees to exercise their options. This will boost the confidence of the employees joining startup organization. Change in the taxation of ESOPs was a foremost budget ask from many industry players and has been taken into the consideration by the government. Besides tax reforms is a good move since it will drive consumption in the economy which is the oil to the $5 trillion economy and improve customer sentiments. Millennials will have more spending power now which can be used for both investment and consumption purpose. Further, announcements such as setup of Data Centre Parks, Fibre to home will bring larger set of rural population on internet world which will help the fintech companies in India to expand and offer additional services to them. This will also lead to increase in job opportunities in rural region.” – Ketan Patel, CEO, CASHe
I would like to congratulate the government for putting out a pragmatic budget plan. The Union budget 20-21 has invariably used Artificial intelligence, machine learning, IoT, UPI among others quite many times probably for the first time. thus the intent seems to be very clear – a strong drive towards an all-growing digital economy. – Navin Surya, Chairman, Fintech Convergence Council
Addressing the weakness in consumption, partly due to the liquidity squeeze that gripped the non-bank lenders, is critical for the revival of economic growth. Tax cuts for individual taxpayers is a huge positive on that front. We hope the Income Tax reductions for lower slab transfers into some relief for middle class encouraging household savings thus offering an immediate boost to consumption which is indeed the need of the hour. However it would have been great to see some action like special Income Tax/GST exemptions and concessions for these type of services. – Navin Surya, Chairman, Fintech Convergence Council
The Union Budget 2020 has some promising announcements for the industry, especially startups like Teal and Terra. However, one of the biggest challenges working with government bodies is the lack of transparency and an efficient consistently adopted standard operating process (SOP). Transparency and the assurance of a “clean” process of facilitation is key. This, I believe, would add more value and be instrumental in driving the success of the proposed cell. The 15% cut in corporate tax will certainly go a long way in reviving the flagging economy as companies will be able to make better use of funds. The attempt to put an end to tax harassment and improve ease of doing business was a much-needed impetus for businesses and the FM made good on meeting expectations. The move to extend the debt recast window for MSMEs to 31 March 2021 is indeed appreciated. I would also request the government to look at facilitating mentoring and networking opportunities as I believe such an ecosystem (investment advisory, information portal, (as proposed) Plus SOP, transparent operations/reporting and mentoring/networking opportunities) would greatly benefit existing as well as budding entrepreneurs of India. The allocation of increased funds for skill development is also a welcome move. Finally, the reduction in personal income tax slabs should hopefully boost consumption and drive demand, further boosting the industry to ensure the country reaches the USD 5 trillion economy goal. – Upma Kapoor, Founder Teal & Terra
“India has one of the strongest startup ecosystem in which entrepreneurship takes the core position. Hence, one of the measures taken in the new Union 2020 budget to increase the turnover limits for startups from 25 crore to 100 crore shall be instrumental to create employment opportunities. The cold storage initiative taken by the Government is another great move which will reduce the cost of manufacturing food, and will further boost the overall income for us. The new taxpayer charter is great relief as it would ensure harassment-free taxes, and will mark a breakthrough in the startup ecosystem with more transparency and efficiency. The Government’s firm agenda of stable business, building of advisory cells and investment clearance will add to the advantage of expanding new businesses with the budget.” – Mr. Gaurav Bahl – Co-Founder & CEO, KOOLCHAS – A QSR chain.
“One of the key highlights of Budget 2020 and an impetus move by the Government of India is the allocation of Rs. 69,000 crore for overall Healthcare sector. To boost the standards of living of every individual and providing access to all the necessary health aid, the government has put together various schemes such as PM Jan Arogya Yojana (setting up of more than 20,000 hospitals will), TB Harega Desh Jeetega campaign (commitment to end Tuberculosis by 2025) and Jan Aushadhi Kendra Scheme (offer 2000 medicines and 300 surgicals in all districts by 2024) which will provide sustainable and clean environment for the country. Designing of preventive regime to combat the various disease using Machine learning & AI will be a progressive and imperative step towards the sustainable development of the healthcare sector.” – Dr. Om Manchanda, CEO, Dr. Lal PathLabs Ltd, sharing his views on Budget 2020 for the healthcare sector.
Kashish Jhamb feels that the Union Budget of the new government perfectly balanced all main parameters of our economic dynamics including, skill development, job creation and technological advancement. “This primarily enables tech-centric start-ups with the more favorable business environment as new investment clearance cell scheme is set to provide end-to-end facilitation and support to start-ups which are driving potential technology businesses such as AR / VR etc. I consider this as one of the highly significant initiatives taken by the GoI that is set to encourage young entrepreneurs with powerful business ideas. We are glad to know that the government proposed Rs. 27,300 crore towards the development and promotion of industry and commerce in 2020-21 which will contribute to the economy’s growth.” – Mr. Kashish Jhamb, Executive Director and CEO, City Innovates
Commenting on Post Budget 2020 announcement made today Mr. Vinay Jain, Founder and CEO, Grafdoer said, “We appreciate the Government’s focus on sanitation industry under Swachh Bharat Abhiyan campaign committing to Open Defecation Free Country by allocating INR 12,300 crore. This is an exceptional move towards the development of our nation. The Government’s emphasis on supporting the MSME sector by providing employment opportunities and providing a subordinate debt by banks is a much appreciated move. We are positive about the Government’s focus on boosting the domestic manufacturing sector, as that will further boost Made In India. Also, the reduction in the Income Tax Slab has given a relief to the middle class sector of our Society, as it will increase their buying power and boost the market.”
Mr. Satish Gupta, Executive Director, JK Technosoft Ltd. said, “In the era of globalization, the Union Budget 2020 focused deeply on ‘Aspirational India’ and ‘Digital Revolution’ with emphasis on evolving the economy digitally by skilling India and increasing job opportunities in the budding as well as cross-cutting fields of Data Analytics, Artificial Intelligence (AI) Robotics and Machine Learning (ML). The Government also announced building of data centre parks throughout the country along with allocation of INR 8,000 crore to set up for the National Mission on Quantum Computing and Technology. Furthermore, the use of AI in ‘Ayushman Bharat’ Yojana, will help in developing the healthcare industry using advanced technology such as AI and other enterprise solutions, thereby achieving seamless delivery of services. We also applaud the Government’s move to empower Rural India by helping 20 lakh farmers set up standalone solar pumps and 15 lakh solarise grid-connected pump sets.”
Ms.Ruchi Garg, CEO, Co-Founder, Venuelook- an online marketplace for venue booking said “The full-fledged 2020 budget is commendable as it has all the right intentions and steps for the Indian economy to be a game changer. Especially focussed on entrepreneurship and startups which will create more jobs in the country. Sticking to the mission vision and targets for the Indian economy hence, there will be more women centric developments which will increase the number of women entrepreneurs in India. More regime in technology will help startups and the private sector to reach Tier I and Tier II cities, as it will give more opportunities to young talents. All the measures announced in the Union budget 2020 will help and boost our growth in the upcoming financial year.”
Mr. Ashwani Rawat, Co-Founder & Director, Transerve Technologies Pvt. Ltd. said, “We commend the Government’s announcement of proposed budget allocation in setting up 5 new Smart Cities under PPP model and further extend our support to this initiative. While the Government proposed to expand the horizon of ongoing ‘Swachh Bharat Mission’ in order to undertake sustainable solid waste management harnessing the latest technology in every village, we further hope that this initiative highlighted by the FM would be extended to urban areas as well.”
“The budget did not specifically talk much on the automobile sector which is going through its slowest phase in recent decades. We will continue to work with Industry bodies to bring the velocity back to the sector which is struggling for traction during this slippery phase.” – Mr. Sudhir Sharma, VP – Finance & Corporate Development, GoMechanic
“The announcement in the Union Budget of almost 1 Lakh Crore for the education sector is most welcome. Supporting research and innovation and increasing access to high quality higher education should be the priorities. The government should use the funds to set up a National Research Foundation (as suggested in the Draft New Education Policy) focussed exclusively on improving research and innovation. Additionally, to make higher education accessible, the government should subsidize student loans (rather than fund institutions). This will reduce the burden on households, promote competition for quality as students are free to choose high-quality institutions for their education” – Mr. Shobhit Mathur, Dean at Rashtram School of Public Leadership
“As per our expectations, the budget 2020 is much focused on driving financial inclusion in the country and the initiative to provide digital connectivity to all public institutions at Gram Panchayat level is a key step to support the same. We are glad that the honorable Finance Minister has announced a series of major policies in the budget which will give a push to emerging technology companies in India. Moreover, this budget has addressed the importance of Analytics, IoT and AI with the government planning to set up data center parks throughout the country which will enhance the whole ecosystem. “We are happy that the budget has given much-required push on creating more opportunities for entrepreneurs. The setting up of investment clearance cell which will offer assistance in funding is a welcome move to boost the start-up ecosystem in India. We look forward to this and to the Government marking progress against it”. – Neel Juriasingani, CEO & Co-founder, Datacultr
“We are excited to know Govt of India’s extensive plans to promote the Travel and Tourism sector in India as the sector significantly contributes to the GDP’s growth. With the government’s concrete plans to launch100 more airports and five archaeological sites at iconic sites with on-site museums by 2024, we are expecting various new opportunities to open up for travel start-ups as well as for other key stakeholders. With this budget, we are confident to share that the Indian tourism sector is set to witness multi-fold growth, especially with GOI’s substantial investment plans of about Rs 3,150 crore towards the ministry of culture. India and its beauty of highly diversified culture will gain tremendous traction at the domestic level as well as this will drive religious and cultural tourism from different parts of the globe. Also, we expected to see the change in GST especially for the inbound traveler” – Mr. Mohit Poddar, Founder & CEO, Shoes on Loose
“We welcome the Union Budget 2020 announced by the government as it proposes a scheme focused on encouraging the manufacturing of mobile phones and electrical equipment, this will further give a boost to government’s Make in India program.” – Mr. Anish Kapoor,CEO Infinix India
We welcome the Union Budget 2020 announced by the government as it will boost startups, tax burden on employees due to tax on Employee Stock Options to be deferred by five years or till they leave the company or when they sell, whichever is earliest. – Mr. Rishabh Mehra, MD and CEO, Digital Mall of Asia
“Government has limited fiscal space to increase the education budget and 99,300 cr will fall short of expectations. Hence the government needs to change approach and attract more private investment in education. To ensure underprivileged students can study in these private institutions, the government should increase allocations to scholarships from the education budget and transfer the same directly into the account of students or through education wallets. Increased FDI in education is an important move as it will bring more quality education in India. Similarly, online courses by top universities will enable more students to get a quality education without being limited by institute infrastructure. As an ed-tech entrepreneur, we are happy with the government announcing digital connectivity at Gram Panchayat level which will help more students in leveraging our products. Moreover, changes in ESOP taxation laws as well as support on raising fund is positive news and encouraging move for us entrepreneurs.” – Mr. Manjeet Singh, CEO, Buddy4study
We welcome the government’s decision to enrich India’s heritage with the creation of museums at key archaeological sites such as Rakhi Gadi, Hastinapur, Dholavira and more. The decision to encourage skill development in museology, archaeology, etc. by setting up the Indian Institute of Heritage and Conservation under the Ministry of Culture is an exceptional step towards infusing more skilled talent into the country’s burgeoning tourism sector. While the INR 2,500 crore allocated for tourism promotion in FY21 could have been higher, the larger investment of INR 27,300 crore for industry and commerce infrastructure will definitely have a positive effect on the travel industry as well. The decision to add 100 more airports will further boost domestic and international travel in the country. Further, we appreciate the government’s recognition of wealth creators, the focus on Swachh Bharat and the tax relief provided to consumers. We are feeling positive about the impact of the Union Budget 2020 on the travel sector and the larger Indian economy. – Mr. Dharamveer Singh Chouhan, Co-founder, and CEO, Zostel
The budget of 2020 has addressed key areas that will help the economy grow in the coming year. The main concern of building an aspirational India has been taken into consideration. The initiative to provide Subordinate debt for entrepreneurs of MSMEs and to be treated as quasi-equity seems to be promising as this would help is promoting entrepreneurship in tier 2 & 3 cities. We are also positive with regard to India’s startup growth and the initiatives that will be taken to promote the entrepreneurship spirit in India. To sum up The Budget as a whole is balanced with respect to each sector and aims to foster the growth of our economy again. – Mr. Nitin Raj Gupta, co-founder, and CEO, Mall91
“The measures pertaining to the Indian start-up ecosystem put forth by the Finance Minister in the Budget 2020 are extremely encouraging. The proposed tax relief on ESOPs is a welcome move as this will ease off the burden on startups and enable them to offer additional incentives to attract the right talent. In addition to this, the budget allocation towards Study in India is a great initiative as the program will trigger increased demand for domestic student accommodation from foreign students. We strongly believe that quality student housing will be an essential driver for its effective implementation. Along with this, it will also improve the occupancy rates of our local partners by 20-30% and boost our own margins on the total transaction volume. We look forward to seeing how these reforms accelerate the growth of the sector.” – Mr. Saurabh Arora, Founder, and CEO, University Living
“As an EdTech entrepreneur, I am pleased that the government has announced a degree-level full-fledged online education programme, which will be offered by institutes ranked in the top 100 by the National Institutional Ranking Framework. Online education is the way forward if we have to provide affordable, accessible and quality education in the country. Apart from that, the proposed Common Eligibility Test for recruitment to non-gazetted govt posts will result in saving a lot of time and effort of aspirants. And of exam conducting bodies because students prepare for a multitude of exams every year; with each government body having a different selection procedure and requiring separate preparations. However, it remains to be seen what steps the government will take to ensure this.” – Mr. Shobhit Bhatnagar, CEO & Co-Founder, Gradeup
The announcement of developing data Centre parks for AI, IoT, Analytics throughout the country comes as a breath of fresh air. There is no doubt that the skill-sets do not match the standards and the lack of skills is evident especially when it comes to the new-age technologies. The FM talking about bringing the much-needed policy, shows how important such skills and technologies are for key growth sectors like IT, BFSI and the economy as a whole. With this initiative, we should positively witness young talent and professionals proactively enhance their tech skills especially in machine learning, artificial intelligence, data analytics and cloud computing. Rs. 3000 crores for skill development is a good start but lacks support in the form of incentivizing companies investing in the reskilling, upskilling of their workforce for the digital age. With such reforms the ultimate benefit will be to the young and growing Indian population to secure respectable jobs, strengthen their career path and continuously keep learning to stay updated and ahead of the curve. – Kamal Dutta (MD India, Skillsoft)
“We welcome the progressive budget by the government this year. The logistics industry has been a key focus for the government in the past few years and with the announcement of the soon to be launched National Logistics Policy- the industry is going to get a major boost. Allocation of Rs 1.7 lakh crore for transport infrastructure in FY21 and the move to monetize 12 lots of highway bundles of over 6,000kms before 2024 is welcoming news as it will positively impact freight movement and transportation expenditures. The government’s focus on promoting disruptive technologies like AI and IoT is critical for the supply chain and logistics industry. It’s important for enterprises to leverage these technologies to improve operational efficiencies and keep margins wider. The government’s plan to bring out a policy for data center parks throughout the country will definitely empower the IT-services industry.” – Kushal Nahata, CEO & Co-founder, FarEye
“It’s a balance budget , where Government has taken measures by allocating Rs. 2,500 crores for tourism promotion in FY21 in order to support the Incredible India initiative. The vision of government to invest in the tourism sector will be a great push for the hospitality sector. India’s heritage and culture rich experiences have always attracted tourists to the country and government’s plan to develop five archaeological sites at iconic sites with on-site museums will attract more tourists in India and globally. The plan to develop 100 new airports will significantly help in building tourism infrastructure and will drive tourism growth.” – Mr. Vijay Dewan, Managing Director, Apeejay Surrendra Park Hotels Ltd and Chairman of CII West Bengal State Council
“The second budget by Finance Minister, Nirmala Sitharaman catered mostly to the demand side of the economy. By putting in more money in the hands of the individuals, Hon’ble Finance Minister’s take on abolishing the Dividend Distribution Tax (DDT) is surely a tax relief for the middle class and lower middle-class segments, while on the corporate side it is highly positive for all consumption-linked Auto sector companies, and the overall market. The simplification of the tax regime is sure to improve public sentiment and boost the economy. This budget is likely to revive our country’s economic growth and create new job opportunities.” – Mr. Ayyushman Mehta, Managing Director, Mavox Helmets – Sandhar Amkin Industries (P) Ltd.
“The focus thus far in the Union Budget 2020 has been on the implementation of technology as a solution in several areas. While the measures announced thus far will not have an immediate impact on the economy, the budget is forward-looking. The implementation of these initiatives will definitely help in creating a more stable and secure future, with the use of technology. This is a great initiative since technology can definitely help solve problems and create new opportunities. The Investment Clearing Cell is a good move for startups and entrepreneurs. The boost towards improving internet connectivity is also helpful – not just for startups and penetration of e-commerce but towards creating new employment opportunities as well. Internet is critical for enabling people and give them a better power to make decisions.” – Kabir Siddiq, Founder, Sleepycat.
Technology:
Mr. Satish Gupta, Executive Director, JK Technosoft Ltd. said, “In the era of globalization, the Union Budget 2020 focused deeply on ‘Aspirational India’ and ‘Digital Revolution’ with emphasis on evolving the economy digitally by skilling India and increasing job opportunities in the budding as well as cross-cutting fields of Data Analytics, Artificial Intelligence (AI) Robotics and Machine Learning (ML). The Government also announced building of data centre parks throughout the country along with allocation of INR 8,000 crore to set up for the National Mission on Quantum Computing and Technology. Furthermore, the use of AI in ‘Ayushman Bharat’ Yojana, will help in developing the healthcare industry using advanced technology such as AI and other enterprise solutions, thereby achieving seamless delivery of services. We also applaud the Government’s move to empower Rural India by helping 20 lakh farmers set up standalone solar pumps and 15 lakh solarise grid-connected pump sets.”
Civic-Technology:
Mr. Amarsh Chaturvedi, Co-Founder & Director, Transerve Technologies Pvt. Ltd. said, “The Government’s vision of ‘Vibrant India’ bought in immense focus on ‘Digital Governance’ that is likely to bring in a paradigm shift in the overall economy. We are delighted to hear that the Government ULB’s (Urban Local Bodies) internship opportunities for civic-welfare programs will help in increasing job opportunities and in turn Skilling the Indian Youth.”
Mr. Ashwani Rawat, Co-Founder & Director, Transerve Technologies Pvt. Ltd. said, “We commend the Government’s announcement of proposed budget allocation in setting up 5 new Smart Cities under PPP model and further extend our support to this initiative. While the Government proposed to expand the horizon of ongoing ‘Swachh Bharat Mission’ in order to undertake sustainable solid waste management harnessing latest technology in every village, we further hope that this initiative highlighted by the FM would be extended to urban areas as well.”
Start-Up:
Ms. Ruchi Garg, CEO, Co-Founder, Venuelook, an online marketplace for venue booking and event planning said,“The full-fledged 2020 budget is commendable as it has all the right points for the Indian economy to be a game changer in the year ahead. With emphasis on ‘entrepreneurship’ and ‘startups,’ we are glad the Government has opened a path to creating more job opportunities in the country. Furthermore, more regime in technology will help startups and the private sector to reach Tier I and Tier II cities, as it will give more opportunities to young talents. Observing the proposed mission-vision on women centric developments and targets to boost the Indian economy, this budget will motivate many women to come forward and embrace women entrepreneurship in India.”
FnB:
Mr. Gaurav Bahl, Co-Founder & CEO, KOOLCHAS, a QSR chain said, “India has one of the strongest startup ecosystems in which entrepreneurship takes the core position. Hence, one of the measures taken in the new Union 2020 budget to increase the turnover limits for startups from 25 crore to 100 crore shall be instrumental to create employment opportunities. The cold storage initiative taken by the Government is another great move which will reduce the cost of manufacturing food, and will further boost the overall income for us. The new taxpayer charter is great relief as it would ensure harassment-free taxes, and will mark a breakthrough in the startup ecosystem with more transparency and efficiency. The Government’s firm agenda of stable business, building of advisory cells and investment clearance will add to the advantage of expanding new businesses with the budget.”
MSME:
Commenting on Post Budget 2020 announcement made today Mr. Vinay Jain, Founder and CEO, Grafdoer said, “We appreciate the Government’s focus on sanitation industry under Swachh Bharat Abhiyan campaign committing to Open Defecation Free Country by allocating INR 12,300 crore. This is an exceptional move towards the development of our nation. The Government’s emphasis on supporting the MSME sector by providing employment opportunities and providing a subordinate debt by banks is a much appreciated move. We are positive about the Government’s focus on boosting the domestic manufacturing sector, as that will further boost Made In India. Also, the reduction in the Income Tax Slab has given a relief to the middle class sector of our Society, as it will increase their buying power and boost the market.”
Fin-Tech:
Mr. Sachin Mittal CEO & Founder, Loanwalle.com said, “In the recently proposed Union Budget 2020, the Government’s focus on entrepreneurship for startup businesses is commendable, as that will generate more job opportunities in our country. Speaking on the financial side, the Government emphasised on more liquidity flow within NBFCs which will help boost the current slopping NBFC and private lending sector. Further, it will allow increased lending opportunities with greater ease. We applaud the new announcement by the FM where NBFCs having turnover of INR 100 crore will now be eligible for SARFAESI (The Securitisation and Reconstruction of Financial Assets and Enforcement of Securities Interest Act). While earlier, only companies with a turnover of INR 500 crore were eligible to recover their debts by selling properties of the defaulters, going forward, the new Budget announcement will allow smaller companies as well to recover their debts. This will further offer more capital flow in the market.”
Auto:
Mr. Ayyushman Mehta, Managing Director, Mavox Helmets – Sandhar Amkin Industries (P) Ltd said, “The second budget by Finance Minister, Nirmala Sitharaman catered mostly to the demand side of the economy. By putting in more money in the hands of the individuals, Hon’ble Finance Minister’s take on abolishing the Dividend Distribution Tax (DDT) is surely a tax relief for the middle class and lower middle-class segments, while on the corporate side it is highly positive for all consumption-linked Auto sector companies, and the overall market. The simplification of the tax regime is sure to improve public sentiment and boost the economy. This budget is likely to revive our country’s economic growth and create new job opportunities.”
AI Digital Marketing:
Mr. Kuldeep Chaudhary CEO & Co-Founder, ADOHM AI-Marketing & Sales platform said, “With emphasis on evolving the economy digitally, the Union Budget 2020-2021 focus on Technological Development by skilling India in cross-cutting fields such as Artificial Intelligence (AI) was a commendable move. Moreover, thanks to Finance Minister Nirmala Sitharaman’s announcement on promoting entrepreneurship through startup businesses, as that will create more job opportunities in the country. Many Indian startups can now breathe a sigh of relief as the turnover limits has increased to INR 100 crore from INR 25 crore. This initiative will provide relief on the tax burden to employees eligible for employee stock options (ESOPs).”
LEGAL TECH:
“Keeping innovation at the forefront, the Union Budget 2020-2021 is deeply focused on promoting ‘technological development’ through Artificial Intelligence (AI), Machine Learning (ML) and Data Learning that will support immensely in digitalising India. The Government’s proposal on creating a ‘National Logistics policy’ and ‘litigation in the reduction of taxation’ will be of great help to all startup businesses. Furthermore, the introduction of ‘Tax Payer Charter’ will help in curbing the tax harassment.” – Arvind Singhatiya, Founder & CEO, LegalKart
“In tune with the present government vision to encourage Indian travellers to travel more and contribute towards the nation’s growth, this budget takes it a step ahead. The budget has focused on promoting tourism & travel with an overall budget of Rs. 2500 crores in year 2020-21. Government aims to develop 100 more domestic airports under the UDAN scheme. To promote travel via railways, government will focus on more Tejas type trains that will connect tourist destinations in India. The Finance Minister has also laid stress on the development of archaeological sites into iconic sites with on-site museums. Five such sites are- Rakhigarhi, Hastinapur, Shivsagar, Dholavira and Adichanallur. Government has also announced renovation of 4 key museums. Rs,150 crore have been allocated for the ministry of culture in 2020-21. We are hopeful that this budget will open new avenues for the travel industry.” – Mr. Nishant Pitti, Co-Founder & CEO, EaseMyTrip
“When it was announced, the budget hurt the Sensex. In the grip of a slowdown, businesses in India expected a far more pro-business budget. While the budget may not be precisely what the business community wanted, it has several silver linings, especially for the IT sector. Data centres are at the heart of a modern digital economy; the government’s decision to promote the establishment of data centres in India is a win-win for businesses and consumers. A considerably more significant number of data centres in India will make the economy more competitive globally. Indian IT players will benefit from the building of additional data centres. The relaxation related to Employee Stock Option Plans is another huge plus. Employees awarded stocks need not pay tax on them for the next five years. Not paying tax on stocks will go a long way in making companies competitive by helping them attract the best talent. Finally taxing dividend when it is in recipients hands will be beneficial to the business”. – Mr Ankit Dudhwewala, Founder, SoftwareSuggest & CallHippo
“Despite tight fiscal constraints, the Budget has done a great job of supporting growth by tweaking taxes and facilitating the development of core sectors like agriculture and allied activities, renewables, exports and social sectors with thrust on digitisation. This is strongly positive for the business model of cutting edge NBFCs like LTFS. If implemented judiciously, this Budget has the potential for transforming India.” – Mr. Dinanath Dubhashi, Managing Director & CEO, L&T Finance Holdings Ltd.
“The Budget 2020 by finance minister Nirmala Sitharaman claims to have provided an annual benefit of Rs 1 lakh crore on account of GST where every average household saves monthly 4% on account of reduced GST. This improves the consumption and saving for each individual. In a bid to brand the technological sector, budget 2020 will prove to be an incentive for foreign investors. Addressing the retail sector specifically, the National Logistics Policy will now advance towards making MSMEs more competitive as the policy will be released soon. More, the new budget dynamics will act as a booster for Food Corporation of India and Warehousing Corporation of India. Furthermore, the Government has increased the infrastructure spend which will definitely improve reachability for e-commerce companies. As a substantial influence of the GST, tax incidence has come down substantially which has become a launchpad for various investments. If the retail sector gets some substantial budget; the retail industry will be able to deliver a great consumer experience. However, few dramatic proposals on this, are still awaited.” – Sunny Nandwani, Founder, Managing Partner, Acuver
“With an increase in the allocation of funds from 94,800 cr last year to 99300 this year, the government continues to invest more in the education sector to infuse growth in the country. Addressing the severe skill shortage that businesses across India are facing at present, focus on skill development will lead to progress in the nation. We are also very affirmative with regards to the new education policy that will ensure quality education to students. Also, the introduction of degree-level full-fledged online education will empower the disadvantaged sections of the society in acquiring employable skills and for upskilling. The taxation of ESOP for employees that has been one of the top demands and will be a boon in the start-up ecosystem.” – Nikhil Barshikar, Founder and Managing Director, Imarticus
“As a member of the startup community in India, it is exciting and welcome to hear our Finance Minister recognize startups as a bedrock of the economy and yto acknowledge our role in job and wealth creation. It is commendable that ESOPs will only be taxed on liquidation as opposed to exercise. This will serve as a lucrative incentive that helps attract and retain talent in our space. The move to remove DDT is another great proposal as it will make Indian equities more appealing for investors and also encourage FDIs. We are confident that these measures will lead to a boost in investments and consequentially quicken the economy.” – Aditya Agarwal, Co-Founder, Wealthy
“As per our expectations, the Budget 2020 has proposed a slew of measures to propel the economy towards growth. The government’s sustained push for tech innovation and entrepreneurship is encouraging from a market perspective. The Budget has particularly proposed a conducive environment for the start-up sector in India and these measures are sure to cement India’s position as a hotbed of startups. The market also stands to gain from the revised Income Tax structure as it indicates a higher disposable income in the hands of the common man. This could prove to be positive in terms of investments and could potentially boost the capital market.” – Basavaraj Puttappa, Founder and CEO, Zeva Astras
“Ms. Munira Savai, Country Manager, QAD India, feels that the Union Budget 2020 has concentrated on the development of the country and has brought a positive sentiment to the economy as a whole. We are glad to know that the government has come up with an extensive plan to boost the manufacturing sector with the investment plan of almost Rs 22,000 crore for the infrastructure projects, that might also introduce emerging technologies targeting to strengthen the entire ecosystem. Also, the policy of setting up data center parks is set to open up new opportunities for tech services companies which will attract foreign investments to creating an adequate infrastructure for all industry sectors. We are confident that these developments will drive significant growth for the entire sector.” – Ms. Munira Savai, Country Manager, QAD India
“The Government has definitely taken a great step with expansion of the Ayushman Bharat Scheme, targeted to the poor. Middle-class patients, on the other hand, suffer the brunt, as an average health insurance cover is only Rs. 5 lakhs. 70% of the middle class population in India is uninsured. Out of those insured, most of them are under-insured. Only 33mm out of a country of 1.3bn pay for health insurance on their own. Out of pocket health expenses in India is 3x the global average. With 44% of the insurance claims paid via reimbursement, there is an additional $2.0bn funding gap even for insured patients. Given the increased cost of secondary and tertiary healthcare in India rising at 20% CAGR, a Rs. 5 lakhs coverage is insufficient. Take the case of Praveen Pudi, an employee at Capgemini Hyderabad, who met with a road accident sometime ago. When insurance and medical loans didn’t seem to help, crowdfunding on ImpactGuru (Rs. 19.61 lakhs raised from 960 donors) covered Praveen’s surgery expenses and a prosthetic hand. ImpactGuru.com has so far helped more than 6,000 patients raise funds from over 450,000 donors. The fastest fundraisers were raising Rs. 21 lakhs in 15 hours for a waiter’s son in need of funds for his kidney transplant and raising 16 lakhs in 3.5 hours for a 15-Year-old boy’s mother’s rectal prolapse surgery.” – Piyush Jain, Co-Founder and CEO, ImpactGuru.com
“I believe the Union Budget 2020 will have a positive impact on helping further drive Indian businesses, given the current local and international market conditions. The startup sector will benefit greatly from the tax breaks, and the move to tax ESOPs on liquidation will encourage the retention of talent in the sector, poising it for continued growth on the global stage. We are happy to see the push for adopting AI and ML particularly in the healthcare sector, which will help boost access to services as well as quality of care for more people, and further infuse growth in the economy. It is also interesting to see that the government has invested Rs. 8000 crore to the National Mission on Quantum Technologies, which will ensure India remains a key global technology player. This move aligns and propels India into the future with an eye on data, communications, cybersecurity, and technology, and from Zendesk’s position as a global Saas company, this is particularly encouraging.” – KT Prasad, Country Sales Director, Zendesk India
“This budget truly focuses on ease of living by pushing the economic development to a new high. The government’s announcement of creating 5 new smart cities in PPP mode along with the states reassures growth of shared mobility as well.Their focus on pollution free and clean air and energy under infrastructure pipeline will certainly make a Greener India by 2030 which will show India moving towards EV-ification and sustainable Mobility. We are happy to see that the government has proposed to establish National Infrastructure Pipeline of 100 lakh crore that will support 100 projects. This push will also help in strengthening the infrastructure for shared shared mobility services as well. With companies like YULU that aims at providing an efficient and green solution for the first mile, last mile, and short distance commute this push will help to drive India’s future towards the Green path. Also, with the government mentioning that start-ups are the focus as well as the strength and the new Investment clearance cell being set up for entrepreneurs will help in stimulating demand, and homegrown companies stand to benefit from such strategic planning.” – Amit Gupta, Co-Founder and CEO, YULU
“We are very happy that the government is encouraging early-stage startups by setting up a seed fund. We believe that data is the new oil and is elated to see the government focus on it” – Ms. Silky Singh, CEO & CTO, Ripsey
The Finance Minister’s focus on bringing equality and consistency in the benefits of capacity building and skill development across different segments of the society is brought to the front with total budgetary allocation of over Rs.102,000/- crore towards education and skill development. This will ensure increasing number of skilled employable workforce, which will go a long way in the economic progress of the country with wider sectoral impact across Healthcare, Agriculture, Infrastructure, etc. Focus on developing the Tech and Digital economy is also seen receiving the due attention as adoption of new age solutions powered by Artificial Intelligence (AI), Machine Learning (ML), IoT has been prominently addressed, apart from the set-up of data centre parks throughout the country, thus bringing about greater integration of rural and urban India.” – Mr Siddhartha Gupta, CEO, Mercer|Mettl
We believe that this year’s budget will boost the domestic economy. Despite her fiscal constraints, the Hon’ble Finance Minister has introduced policy measures that will stimulate domestic consumption, encourage investment and also strengthen the Indian infrastructure. Constructive policies have been launched in field of integrated logistics. There will also be a visible improvement in MSME competitiveness as the government has allocated 900 cr for their debt funding. We welcome this year’s budget and now wait to see how it pans out in terms of implementation.” – Mr. Gautam Bansal, SVP, Finance, Shiprocket.
“The Budget announcement made by the Union Finance Minister today was visionary and demonstrates the government’s intent to focus on demand generation, spurring jobs, increase infrastructure spends, attract foreign institutional investors and increase farm income. Amendment in the Factor Regulation Act 2011 will enable NBFCs to extend invoice financing to the MSMEs through TReDS, thereby enhancing their economic and financial sustainability. This is a welcome step and will instill confidence and bring optimism in the sector.
Introduction of a scheme to provide subordinate debt for entrepreneurs of MSMEs is a welcome step and I am confident that the Indian NBFC sector will reap the benefits of this growth stimulus and SME focused initiatives and be on the growth path soon.” – Dr. Rashmi Saluja, Non-Executive Chairman – Religare Enterprises.
