Sadiya Khan, Founder of Akund Communications
“According to a recent report by World Bank, despite making up 48% of the Indian population, women have not benefited equally from its economic growth. 65% of women are literate compared to 80% of men.
Budget 2019-2020 did not have much to offer to the Indian women but this year the Finance Minister Smt. Nirmala Sitharaman has allotted of Rs. 28,600 cr for Women-Centric programmes in FY21 which will be deployed for schemes like Beti Bachao Beti Padhao, Mahila E-Haat, Working Women Hostel, Mahila Police Volunteer, NIRBHAYA, SWADHAR Greh and other such schemes. This will encourage women to come out, educate themselves and become independent, increasing women workforce in the country.”
Dr. Babit Kumar, Radiologist, Motherland Hospital
The Honourable Finance Minister’s Union Budget presentation has brought some good news for the healthcare sector. The allocation of an additional Rs 69,000 crore to healthcare in the new financial year is a heartening measure. We are also pleased with the increased coverage announced under the PMJAY, which seeks to improve access to quality healthcare and insurance in Tier II and III cities as well. The FM has also addressed the shortage of qualified doctors, a major concern for the healthcare segment, and announced setting up new hospitals with tax generated from the sale of medical devices, which is a welcome move.
Mr. Amit Gupta, CO-Founder, and CEO, TradingBells
Market structure is very weak where it was vulnerable to fall on weak global cues while there was only hope that out of the box budget could reverse the direction of the market but the budget was in line expectations with disappointing on LTCG front. The rationalization of DDT is the only cheerful factor for some high dividend-paying companies like IT companies. There were no major steps that could boost economic sentiments immediately. The market is taking budget as a non-event and continuing its downfall in tandem with a fall in the global market amid worries of Coronavirus. Some cut in income tax was already expected which cause some immediate positive reaction in some consumption stock but then they witness sell off at higher levels. The cut in income tax comes with a rider of giving up exemptions which are also one the reason for disappointment, especially life insurance stocks fell sharply because it is expected that those forgoing exemptions to move to lower tax regimes may not take life insurance. In terms of other positive developments, insurance guarantee on deposit raised to 5 lakh from 1 lakh and FPI limit in bond market raised to 15% from 9% are meaningful. The government is going to sell a stake in IDBI bank which was taken positively by the stock market and the government will sell part of LIC through its listing in the stock market which is also a positive trigger for the market.Technically, Nifty has corrected significantly where it is trading near critical support of 11700 which coincides with its 200-DMA of 11655 where we can expect a pullback from here if the worries of coronavirus ease otherwise the downward journey will continue with some time consolidation. In the upside 11925-12000 zone will act as an immediate and strong supply zone.
Mr. Uday Somayajula, Co-Founder, ePayLater
“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.”
Shubh Bansal, Co-Founder, Truebil
“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”
Dr. Sandeep Pachpande, Chairman, Audyogik Shikshan Mandal (ASM) Group
“Though the fund allocation for the education sector is still not adequate we appreciate Govt’s decision of welcoming ECBs and FDIs in the education sector. The move has the potential to bring a positive change as it will help in addressing various shortcomings that have been created due to lack of funds, such as insufficient teacher training programs, a dearth of advanced teaching facilities, libraries or labs, etc. Also, I believe the online degree programs from the top 100 NIRF ranked institutes will ensure access to higher education among the less privileged Indian youth. Separate fund allocation for skill development programs and apprenticeship programs can provide the much-needed thrust in the process of creating skilled professionals in the coming decade.”
Mr. Siddharth Goenka, Founder and CEO of Aiosell Technologies
“We welcome the specific focus on startups in the budget as the engine of innovation and creativity in the economy. The creation of digital platform for managing and filing of IPRs is something our country needed as the IPR laws are still not very well defined and we welcome this move with full support. One area where we would have liked more focus from the budget was around providing a simple platform for startups to manage their foreign exchange and remittances. The current banking processes around foreign remittances (both incoming and outgoing) are extremely cumbersome and can be made easier for registered startups to enable more focus on innovation and exports rather than dealing with paperwork and regulation. The deferment of ESOP taxes is something that should have been done even earlier as many employees do not cash in or do not sell their ESOPs for a long time hence should they should not be preemptively taxed. Regarding the tax breaks, while a 3 year income tax exemption is a welcome move, this period can be extended to 5 years which would give the startups more time and runway to invest in digital disruption.”
Mr. Vikramjit Singh Sahaye, Founder and CEO, Hiring Plug
“For Startups, deferring the ESOPs Tax by 5 years and a provision for seed funding is a vital impetus towards boosting the small business sentiment and centrifugal to India’s $5 Trillion vision by 2025”
Mr. Vivek Goyal, Co-Founder, PlayShifu
“One of the core reasons behind a successful startup is the ability to hire from a very talented pool and to keep them motivated during the long and hard journey of scaling. This is the reason why startups from hubs like Silicon Valley grow up to become world-renowned and add value to society at large. The tax deferment on ESOPs will prove to be one of the significant factors and levers in motivating growth-enabling employees, a great step in helping startups in India to scale by hiring and retaining them! Reforms like these give more power to the Indian startup hub to make a mark on a global scale and contribute towards India’s $5 Trillion vision by 2025.”
Mr.Shubhendu Sharma, Founder and COO, Wifi Dabba
“Deferring the ESOPs in startups by 5 years is a thrust that will surely advance the business sentiment and help reorganize the sector and this is very much centrifugal to India’s $5 Trillion vision by 2025.”
Mr. Bhupinder Singh, CEO & Founder, Incred
“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”
Mr. Jaikishan Parmar, Sr. Equity Research Analyst, Angel Broking Ltd.
“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.
“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. Shakir Ebrahim, Founder of GoBisbo Broadcasting Network Pvt. Ltd
“The Budget 2020-21 has been disappointing indeed, lacking any resolve towards digital India. We had expected infrastructural support for Indian companies to come up to speed with the servers which support more substantial streaming services like Netflix and YouTube. Instead of looking at digital India and Modi’s digital dream, the budget cuts custom duty on newsprint by half. In my opinion, this budget will not help build our strengths and capabilities for $5 trillion. The gross under-reporting of the budget deficit at 3.8% of GDP instead, shows a polity still trying to hide systemic problems which have led us there. The imposition of higher duties on Chinese goods is also a virtual admission that we are not confident of competing with China.”
Mr. Varesh Chopra, Regional Director, South Asia and the Middle East for the Globus family of brands
A very good move which will have a far-reaching effect for the tourism industry in multiple ways – apart from enhancing movement, both for domestic leisure as well as business travel, I clearly see the ease of accessibility from regions hitherto only connected by surface to major international airports in India , ultimately encouraging outbound tourism as well.
Ashish Bhatia, Founder & MD, India Accelerator
If you look at the Budget, it is clearly visible that the concentration was on overall development of the economy and there were very few sector specific announcements. There were announcements that will help in supporting the emerging technologies companies in India. The FM also took steps that will help the entrepreneurs including the announcement regarding the corporate tax and discouraaging tax harassment. Other positives for the start-ups are: A five-year tax holiday on Esops, a 10-year tax exemption for startups with under Rs 100 crore turnover and also talks of a seed fund to push new businesses
Mr. Dhruv Agarwala, Group CEO, Housing.com, Makaan.com and Proptiger.com
“We laud the Government for announcing measures in the Union Budget 2020 which come as a major boost for start-ups. While acknowledging the contribution of entrepreneurship to the economy, the Centre has decided to increase the turnover limit from the existing Rs 25 crore to Rs 100 crore while allowing 100% deduction of profits for three consecutive assessment years out of an extended period of ten years (previously seven years) for claim of deductions. The government has also decided to ease the burden of taxation on ESOPs, which would help start-ups attract talent. All of these would go a long way in boosting the entrepreneurial spirit in the country, which now contributes significantly to the economy.”
Mr Neeraj Jain, CFO, Cosmo Films Ltd
“Budget 2020 looks a balanced one with focus on transforming the economy. Various steps taken to reduce regulatory compliance and creating environment for ease of doing business will strengthen MSME sector and will give a boost to overall economic growth. The overall measures announced will spur the revival of the economy and increase consumption. The proposed focus on education, infrastructure, data processing and healthcare will be positive for economic growth.”
Mr. P Ravindra Pai, MD, Century Real Estate Holdings Pvt. Ltd
“Union Budget 2020 has shown a positive long-term direction on reviving growth with Rs. 1.03 Trillion spend on Infrastructure, Income Tax Cuts, DDT Exemption and Manufacturing focus. For the Real Estate Sector, it was a mixed bag. The extension of INR 1.5 lakh tax benefit and approval window for tax holiday on affordable housing are welcome steps. While the Rs. 25,000 crore stressed asset fund by the Government is taking off, specific measures to resolve the liquidity such as restructuring window for stressed projects or further tax benefits to individuals on housing across all segments, would have helped in boosting immediate demand and growth.”
Mr. Mahendra Singhi, President, Cement Manufacturers Association & Managing Director and CEO, Dalmia Cement (Bharat) Limited
“The emphasis on highways and roads development is well placed. This captures the priorities of economic development and an aspirational India. We would hope that rural demand gets revived and it assists in job creation.”
“We are actively engaged in a dialogue with the Ministry of Commerce on the National Logistics Policy and would expect some of our considerations for upgradation and modernisation of rail infrastructure are particularly carried through. The Cement Industry has also been an active partner to the Government in the Swachh Bharat Mission. Reference and priority in this context being accorded to source segregation and processing should add to creating a more facilitating environment for the role expected of the Cement Industry in waste management given that Polluter to Pay principle has been outlined in the National Resource Efficiency Policy. Overall good to see Budget 2020-21, which reiterates the priorities for economic development. We would look forward to these taking shape. The reaffirmation of commitment towards clean air, Climate Change mitigation efforts are most welcome. More policy interventions to revive real estate and housing would be welcome. Infrastructure development, new 100 airports and emphasis on road would go a long way to revive cement demand”,
Mr. Neeraj Akhoury, Vice President, Cement Manufacturers Association & CEO and Managing Director, ACC Limited
“The special emphasis on infrastructure development that the Government has undertaken over the past few months has been strengthened in the Budget announcement today by the Hon’ble Finance Minister. The focus on project preparation facilities for infrastructure projects and the national logistics policy that will be released soon should help boost infrastructure and have a positive impact on the economy. Budget 2020-21 aims at making growth more inclusive while retaining focus on the immediate priorities. Priorities given to household, roads, railways, economic corridors, solar power, accelerated development of highways should help boost development and wealth creation. The Cement industry is committed towards playing a strong role in the Government’s aspirational agenda for transformative economic growth”.
“The Government’s commitment to invest over Rs. 100 lakhs crore in infrastructure will help fast track the projects that have been identified under the infrastructure pipeline. The focus on disaster resilient infrastructure in the budget is a move in the right direction”, CMA said. CMA also welcomed the strong push in the budget for doubling farmers’ income by 2022. A strong rural sector will boost the cement sector. The development of warehouses and cold storage facilities in rural India will boost agri-infrastructure in the country which is a welcome development. CMA also said the decision on abolishing the dividend distribution tax (DDT) will also benefit corporate India and will give a big boost to investment.
Ms. Aparna Dutt Sharma, Secretary General, CMA
“The Cement Industry plays a pivotal role in India’s success story and nation-building and has partnered with the Government of India for countrywide awareness on single-use plastic waste management under Swachhata Hi Seva campaign. The Cement Manufacturers Association and all its members remain inextricably aligned with the Government in providing an impetus for sustained growth and development of the Country.”
Ms. Daksha Baxi, Partner & Head – International Taxation, Cyril Amarchand Mangaldas
“Major announcement of 100% tax exemption on all types of income to major FDI investments in infrastructure projects before 2024 with lock in of 3 years should be received well for boosting investments in infrastructure.”
Mr. Ravi Pardhi, Co-Founder and CTO, Skillbox
‘As a tech start up, at a macro level, we expect the government to make India one of the best destinations in terms of Ease of Doing business. The regulatory environment including tax compliance norms should be made simpler and frictionless. GST reforms should continue, making the process even faster and simpler, particularly the refund of input tax credit to help start-ups manage working capital better. To counter economic slowdown, the government should lower income tax rates and increase certain deductions, which would enable more cash in hands of consumers and boost spending. The industry also expects a waiver of Angel tax for the DPIIT registered Startups, as announced in July last year. Speaking specifically about the entertainment sector, we have some key expectations from the government.
First is allowing crypto currency as a secure transactional medium. Second, the government should take steps to promote the live entertainment segment in India which is currently exploding and needs a sound ecosystem and support. Setting up international scale commercial venues either through PPP or private mode would help ease the pressure on existing venues and the accompanying delays in event scheduling. Additionally, integrated entertainment hubs on global lines showcasing art, history, entertainment, F&B and more should be considered and a pilot commissioned. Both the endeavors have the potential to attract enormous number of tourists both domestic as well as international.’
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