Budget 2019 Quotes by Industry Experts

INTERIM BUDGET 2019-20 PRESENTED IN PARLIAMENT TODAY HAS A MAJOR SCHEME FOR FARMERS AND PROVIDES FOR INCOME TAX SOPS THIS INTERIM BUDGET IS TO BE VIEWED AS A MEDIUM FOR A PROGRESSIVE PATH FOR THE COUNTRY, THE FINANCE MINISTER SAYS SHRI PIYUSH GOYAL SAYS GOVERNMENT HAS BROUGHT DOWN AVERAGE INFLATION TO 4.6%, LOWER THAN THE INFLATION DURING THE TENURE OF ANY OTHER PREVIOUS GOVERNMENT.

Quotes By Industry Experts

 

 

Abhishek Gandhi, Co-Founder & CFO, RupeeCircle

The budget is on expected lines with a focus on reviving the economy. Efforts have been made to encourage NRIs to invest in India with steps taken to merge NRI portfolio route with FPI route and easing KYC norms for NRIs. Also, the budget is favorable for start-ups with exemptions on Angel tax and no scrutiny of funds from income tax department. Another positive is promotion of digital economy and making digital transactions free for customers. That is the right step in boosting the digital economy. We also welcome the idea of the social stock exchange however, a bit disappointed that something with the impact potential of P2P was missed in the budget. Steps taken to promote P2P in any way would help the sector which has been driving financial inclusion and creating an alternate investment asset class.

Bhavin Patel, Co-Founder & CEO, LenDenClub

“I along with many startups had urged FM to simplify the angel tax issue. And here comes the move which we all would like. Provision of e-verification of such investment and declaration from startup/angel is good enough to stay away from angel tax scrutiny.” 

 

Piyush Khaitan, Founder & MD, NeoGrowth

“The Union Budget announcement on scaling up the Indian economy from USD 2.7 trillion to USD 3 trillion in FY20 and further targeting USD 5 trillion by 2024-25 is a strong roadmap for economic growth which will boost business activities in country. Our customers i.e MSMEs are facing a consumption economy. With the encouraging measures for boosting GDP driven by consumptions and investments, it ushers in positivity for our line of business. Overall Govt. measures announced for road, port connectivity, foreign flows into debt instruments, construction of 9.5 Crore houses in next 3 years and other tax measures will boost the Indian economy. Moreover, the Govt. has acknowledged NBFCs as a major contributor to GDP growth with adequate measures for supporting their liquidity requirements, lowered tax rates and Guarantee facilities for raising competitive funds.”

 

Abhishek Chakraborty, Executive Director, DTDC Express Ltd

“The logistics sectors plays a very crucial role in propelling India to become a trillion dollar economy. With some key measures like Ease of Doing Business, simplification of e-way bills, UDAN, Bharatmala, Jal Marg Vikas etc., it will only improve the overall logistics sector and also reduce the cost of transportation. The budget also specifically mentioned on the Government’s vision to focus on rivers for cargo transportation which help in increasing the freight movement whilst making it cost effective. The proposals made in the budget look very conducive to improve the sector’s competencies. The budget announcement has made special emphasis on the ‘Ease of Living’ thus making it very citizen friendly. The only thing now is execution which remains key and be watched for.” 

 

Kewal Kapoor, Director & Creative Strategist, CHAI Kreative and Return of Million Smiles

“FM Nirmala Sitharaman’s first budget has given a generous boost to startups. The move by the finance minister to set up a TV program to be run by the startups themselves will help them get traction by venture capitalists, and aid in job creation, bringing down our historical high unemployment rates. The easing of regulatory norms for angel tax assessment will also provide welcome relief to the startup community, although an angel tax holiday would have gone a long way towards cementing the government’s commitment to promoting entrepreneurship in line with the Startup India initiative.  The proposal to establish a central National Research Foundation to assimilate and disburse funds from all ministries is a long term strategy that will help optimally funnel public money for the purposes of research. The reduction of corporate tax to 25% for companies with an annual turnover up to Rs. 400 crores will provide a much needed financial relief for over 99 % of the companies, and we are glad that the finance minister brought it up in this budget.”

 

 

Manoj Mehta, Chairman,JIIF-JITO Incubation & Innovation  Foundation and Owner MTC group and Madhuban Announcement  The Budget gives a major boost to startups by promising to provide skills, incubation as well as initiate measures that will strengthen the culture of entrepreneurship in India. The Finance Minister laid down an objective of setting up 80 “livelihood business incubators” and 20 tech business incubators to create 75,000 skilled entrepreneurs under the agro rural industries. This is a very important measure for the Indian economy. An inordinately large number of Indians currently rely on agriculture for livelihood, and the move to boost entrepreneurship in the rural-agro space will help shift people out of core agricultural activities. Another major relief for startups is the easing of regulations on angel tax. The fact the government has promised not to scrutinize startups and their investors for valuations removes a major headache for investment-hungry startups.

 

 

Dr. Narendra Shyamsukha, Founder & Chairman, ICA Edu Skills

” Budget and Finance are integral in shaping up the discourse of consumption, especially for education. Depending upon the robust budgetary reforms can the educational framework thrive. India has been one of the forerunners in imparting quality educations, from traditional Dharamshalas to modern cloud schools, with the support of the government. Yet skilling is a segment which requires a closer look as India still in grips with acute skill shortage- the gap between education imparted and the skills required, is vast. As a solution, this, 2019 budget has brought a great amount of hope. Government’s move to have 75,000 skilled entrepreneurs is set to boost skill development and job creation.  For this, the government has proposed to focus on creating training modules for industry-relevant skills like AI, IoT and Big Data. This, in turn, will help address the severe skill shortage technology and IT companies are facing right now.  ICA heralds this move and pledges to continue creating such path-breaking curriculum, empowering students to reach to the zenith.

 

Mr. Martin Radley, Co-Founder, Carter Radley

“Indian education has seen its set of ups and downs, from the earlier tropes of traditionally molded education to modern-cutting edge brand of learning. As India moves towards a progressive future, the yearly budget casts vast implications on how the educational system will thrive and upgrade itself. Skilling is a crucial aspect of national growth, as India is still in grips with acute skill shortage- students are not getting an apt education for them to be relevant in the job scenario. In this case, bridging the skill gap, with relevant education, has been a critical issue begging to be addressed. As a respite, the government has responded to this via some wonderful and robust reforms, primed to empower the educational scenario. Government’s move to have 75,000 skilled entrepreneurs will help boost skill development and job creation. Training of 10 million in industry-relevant skills like AI, IoT, and Big Data will help address the severe skill shortage technology and IT companies are facing right now. Skilling in these areas, which are valued highly within and outside the country, will ensure that the students can secure high paying jobs both in India and abroad.  Certainly, India is set to reach it’s shinning status in a short span of time, with such reforms.”  

 

Dr. Pankaj Gupta, President, IIHMR University, Jaipur 

“Modi 2.0 government’s much-awaited union budget focused a lot on the reform of our education system and made some big announcements for the education sector as compared to this year’s interim budget. New education policy will be introduced and the higher education in the country will be laid on the basis of research and new age skills such as robotics and artificial intelligence (AI) to improve our outcome drastically. We are elated by these kinds of amendments in the education system because we at IIHMR also stress on research-based education than just providing the bookish knowledge. We also welcome the government’s ‘Study in India’ program under which efforts will be made to bring in foreign students. Such an initiative will give a boost to the various educational institutes in India and help us in finding India’s own Harvard or Oxford. But at the same time, we being the pioneer institute in healthcare is little disappointed with the kind of silence government maintained by not mentioning anything about healthcare and Ayushman Bharat scheme as that would have helped to solve the medical care crisis in India,”

 

Asheesh Gupta, Pro Vice-Chancellor, JK Lakshmipat University, Jaipur

Education has been one of the crucial pillars in which the prosperity of any nation has stood, defining and addressing the economic variances and the cultural build-up that its citizens imbibe. For a dynamic and evolving nation like India, where the majority of the brilliant minds hail from, it is especially important to empower the educational sector of the nation. The 2019 Budget has brought in an extension to the Prime Minister’s crusade in empowering educational framework of the nation.  With the proposed National Education Policy, primed to transform the higher education system, India’s think tank is set to be on par with the global standards, with an intrinsic focus on practical knowledge. To make India a hub of higher education the government proposes ‘Study in India’ to bring in foreign students to pursue education here, creating the perfect base for India to garner the global educational renaissance in their own ground. These come out to encourage universities in elevating their standard and curriculum while providing international recognition to homegrown ‘think factories’. Universities are spurred to contribute in creating a congruent environment for education and such developments are welcomed.” 

 

Naina Ruhail, co-founder, Vanity Wagon

The budget ’19 shows a ray of positive light for the startups in the future – with the doordarshan bouquet program, no liability to paying Angel tax, a provision to carry forward and set off losses and also exemption from capital gains under certain provisions. These and a few more provisions (FDI relaxations) show the inclination of the current government to make India a positive landscape for startups and ensure that companies like Vanity Wagon would be favoured by policies going forward”.  

 

Tabby Bhatia, Director, Voganow

We are delighted to see the government’s focus for the startup industry and to generate more job opportunities for our youth generation. We must say that it’s a great move made by our Finance Minister for startups to remove scrutiny procedure by the income tax department during raising angle tax funds. It will help the entire startup industry to accomplish the activities faster and will give a big relief to industry players. Reduction of 25% in corporate tax for less than Rs. 400 crore turnover companies along with tax proposals, will stimulate growth and promote startups and the digital economy.

 

Karan Ratti – CEO & CSO, Ratti Corporation

Startup incentives are key in this Budget if Jobs & Economic vibrancy has to be created. Startups are new and unestablished business entities with little operational stability and a lot of uncertainty, but they are also the fastest job creators not just directly but also through acquisitions which enhance the capabilities of larger established businesses. Incentivization for Startups acts like a cocoon for them to mature and create economic prosperity.
The government is to be appreciated for bringing focus on Startups and should now plow ahead to amplify this focus and relax several regulations that limit their growth. Elimination of Angel Tax, GST post cash realization v/s post invoicing, unburdening startups from numerous GST compliances, are some areas we would like to see happen. But focus now on the Startups that involve Manufacturing is Key. Issuing an Online platform for startups in the Manufacturing sector to utilize for obtaining & renewing various Licenses, NOCs, and Permissions is necessary to prevent wastage of the limited time and resources that startups have as well as eliminate bribery & corruption that despite efforts still remains at large. I am sure that startups would be happy to even pay for such a service if it helps keep startups clear from commissioner/inspector raj in any department.

 

Ramesh Kapoor, CFO, Numero Uno

The budget by and large has been balanced, on one hand, it is focusing on making 3 Trillion economies by 2020,  and housing for poor, rental laws, labor laws, electricity, and clean energy, infrastructure development, etc. But we will have to see the fine print as far as the rental and labor laws are concerned. The proposal to bring under  25% tax ambit companies having a turnover up to 400 cr .from 250 cr earlier is good, however, this should have been coupled with bringing down MAT rate and 25% rate should have been applicable to all companies. Recapitalization of PSU banks will help them come out of PCA and make them lend more to the economy. In addition, the government has extended helping hand to NBFC’s and more powers to RBI to regulate them. The will ease liquidity issue to some extent, but they have not addressed the insolvency issue plaguing the NBFC’s. Further opening of FDI in aviation, media, insurance sector would be better for the sectors, tax incentives for affordable housing, EV’s. Faceless assessment of tax returns would go in a long way in reducing corruption and increase compliance. However increase in the fuel prices would have a cascading effect and would not help in increase in the consumption, and at the same time no relief to salaried class in terms of the tax rate, TDS, standard deduction there are no specific steps for job creation. 

 

Dr. Prakriti Poddar, an expert in Mental Health, Education, HR, and Business Upliftment, Managing Trustee of Poddar Foundation and Director Poddar Wellness Ltd.

“Firstly, it was very heartening to see a woman break another glass ceiling by presenting the Indian budget as the first full-time female Finance Minister. It clearly shows that when given equal opportunities, there is no barrier a woman cannot cross. The Finance Minister also clearly underlined that the country cannot progress unless the condition of women is improved. In this regard, the expansion of the Women Self Help Group (SHG) Interest Subvention Programme across all districts is a highly welcome announcement. It will help empower women by encouraging women entrepreneurship. Making one woman in every SHG eligible for a loan of 1 lakh rupees under MUDRA scheme will open a host of entrepreneurial and social upliftment opportunities for women. The FM also proposed a committee to evaluate and suggest measures to improve women’s welfare. I would like to request the government that this committee must also include women from rural areas and those who are in touch with the grassroots. Also, we are still in hope when mental health will be part of the insurance policy, that will not just help women in general but also the entire population who suffers from this problem.’’
It is my humble request you to please incorporate the above quote in your story. 

 

Ashish Gurnani, CO-founder Postfold

In the new budget presented by our Finance Minister Nirmala Sitharaman, she has envisioned India to be transformed into a 5 trillion dollar economy. It is pivotal that this transformation happens through the digitization, including the payments ecosystem. Usage of digital payments will cut costs for e-commerce of start-ups such as PostFold, boost growth and provide transparency of accounting. Successful implementation of initiatives of digitization will also lead to more consumers from tier 3 and tier 4 cities to open up a larger market for e-commerce players.

 

Anand Kumar Bajaj -Founder & CEO PayNearby

The Union Budget today has enabled our economy to make the transition towards a New India with a Nation First approach. The mobility powered payments with NCMC and policies to boost further acceptance of digital payments along with Startup facilitation focused measures will help the nation take strong steps towards efficient and inclusive growth. Introducing pension for retailers helps to bring in much needed sustainability in the retail ecosystem. Bridging the banks to become interoperable at any counter for the customer truly symbolizes that FinTech is here to be a mainstay of future India.
Simultaneously, the government has also enhanced its control on unappreciated credits in the Bank account as a stroke of RegTech. By allowing PAN and Aadhaar to be used interchangeably, interoperability has been enhanced which will not only provide flexibility for the customer but also bring many individuals under the formal domain

 

Jaydev V. Sanghavi, Executive Director, Aarvi Encon Limited

During the union budget announcement, the government mentioned its plan to spend 100 lakh cr on infrastructure and development over the next 5 years. This vision brings out an opportunity to open enormous roadmaps for our country, hoping to generate employability, especially engineers pertaining to the Civil sector in order for project executions and constructions, proving to be positive in our line of business activity. Taking India forward through technology in both urban and rural areas, the government also spoke about Big Data and AI which will improve the aspects of decision making, speed and accuracy resulting in the ability to benchmark and track the progress of developmental projects. Thus, recognizing to be very promising for years to come. Overall, this is a positive move by the government as it also acknowledges to look at the labour rules and ease them with times to come

 

Dewang Neralla, CEO,  Atom Technologies

The budget is set the strong tone for incentivising digital paynents. Inplementarion of low cost payment modes for business more than 50 cr turnover will definitely drive QR and low cost  options across organized retail and larger enterprises. However announcement of no MDR for customers and merchants would require clarity with respect to which instrument as well as mode.

 

Sanjay Mehta, Private Investor – Mehta Ventures

Budget 2019 has brought some positive changes in Angel tax provisions for the Start-up eco system, this angel tax law by Congress UPA government was regressive which today’s budget we now have been relived. It’s a positive move for Angel tax provisions as start-ups and investors will no longer be subject to valuation of share premiums with no scrutiny. It’s a big win for the whole ecosystem as the draconian law is removed. The new TV channel for start-up is a surprise. It should have been a online streaming media channel rather than old fashioned TV channel.
About announcement on tax exemption on Capital Gains, it is super move which will now provide an alternative investment opportunity for HNI who sell properties and fund start-ups. This exemption should have been also applicable to investors in SEBI registered angel funds as the money would be channelled into start-up investments only. TDS of 2% on payments of 1Cr and above in cash. This 2% TDS will not be applicable on payments made by digital mode. It is a good move as it make a distinction between legitimate business who use digital channels and it’s traceable. This should deter people from doing money laundering.

 

Yagnesh Sanghrajka – Angel Investor & Mentor

It’s a good budget , not a monumental one I would say, with a progressive outlook with focus on known sectors like education and infrastructure. Some tax scrutiny benefits to Start-ups though nothing for Start-ups investors which would’ve benefitted the entire start-ups eco system. Electric vehicle push was expected Taxing the very rich is a good move. Simplifying GST refunds and administration is very much needed. EXECUTION will be the KEY for this govt going forward. CBDT will provide special administrative programme for assessing and clearing grievances and existing tax forms that are submitted, this is about existing notices, that IT dept issues to start-ups in the recent past. So a fast track resolution will certainly help these start-ups. With today’s budget proposals, we hope that tax scrutiny doesn’t happen on newly formed start-ups going forward.

 

 

Nikunj Turakhia, President of SUFI

This Budget has laid down the road map for achieving the target of 5 trillion USD by 2024-25. Allocation of 100 lakh crore for infrastructure over 5 years will lead to good demand for steel and other construction material. The SME sector has got further benefit as turnover limit raised to 400 crore for 25% income tax. 70000 crore infusion to PSU banks may not be enough but yes good beginning to address the liquidity issue. Overall a balanced and satisfactory budget. 

 

Vatsal Kanakiya Expert on AI Blockchain Start-ups and Venture Investor at Mehta Ventures

To me the most interesting part of the budget was the push the government is giving to science and technology in India. At the lower level the government has proposed to upend the education system and improve skill training in AI, Big Data, and Robotic. A Rs. 400 Crore investment into higher education institutions for improving the system and funding  and coordinating research in India through the National Research Foundation will give a push to innovation. In addition to this the vision for BharatNet, and every Indian around the country might just have the opportunity to participate in world class innovation. The focus is not just on innovation though – it is also on creating legitimate businesses from the research conducted. The government is leading the way by creating the New Space India Limited (NSIL) – a PSU that will monetise the innovations made by ISRO. To me, the vision seems grand, but I will have to wait and see if the government executes on it.

 

 

Samir Sanghvi, Empanelled member of Tax Committee, SUFI

The Budget 2019 was an initiative towards making India, a $5trillion economy by 2024-25. Budget attempted to tap economic growth from mid to long term by focussing on certain unique policy decisions like bringing Rural and Urban growth parallelly, resolving NBFC liquidity crisis with one time credit guarantee from RBI, bringing housing sector under RBI preview, unique focus on upgrading education policy, focus on ‘start up’s to work more proactively and fearless, reforming labour laws with four labour codes, relief to 99.7% corporates to enjoy 25% tax bracket by enhancing turnover threshold and making way for FDI by aligning tax structure at par with most of developed countries, designing Dispute resolution plan for old tax disputes. Overall, a progressive budget and effect will be felt in long run, once liquidity crunch is addressed.

 

Umesh Gosar, Direct Tax & GST Empanelled Committee, SUFI

Budget is a policy statement by the government and this time the government has tried to keep most of the sectors happy, but after the major victory in the Lok Sabha elections, the government did not carry out any major reforms. To kick start the economy by giving 70,000 Cr. to the bank and by reducing the taxes, doesn’t seem to be a very great reform. We are already close to a 2.7 trillion economy, so if we are talking about 7-8% growth, which means  adding 350 billion dollars every year, for doing that we need huge investments, good regulations and a decent framework which we don’t have.

 

Rikab Mehta, President, Bombay Metal Exchange Limited

It was a versatile Budget, which is a great effort made by the Modi Government  to fulfill the promises made during the elections. It’s a great step for trade industries by the government of reducing tax to 25% tax from 30%,  for a turnover of Rs. 400Cr. Still nothing has been done about the tax on dividend. Our economy is at its best right now.  Still, implementation of demonetization and GST has not given a firm track to our economy.

 

Hemant Parekh, Senior Vice President – CAMIT

Metal Sector expected a lot better budget  this year. We expected the government to address the issues regarding level playing field for filling raw materials, duty structure imposed on raw materials and TCS of 1% which is imposed on raw materials, but there was no sign of it. On the positive side, they are spending on infrastructure, having a good road infrastructure would enhance the moments of vehicle. Corporate tax rate which has been reduced to 25% is an excellent decision for entrepreneurs, it’s like a boon.

 

Jubin Thakkar, KLT Automotive, Chairman and Managing Director

The automotive industry is in shambles. Not even 60% is being utilized from the total capacity created. Automotive industry’s GST was 28% this time so they are the major contributors to GST. Government should take measure to aid automotive industry’s growth. India produces 3mn vehicles but from that electric vehicles are not more than 50,000. Government is providing incentives for battery but there is no eco-system for electric vehicles, that should be created first like how US did, then the production of electric vehicle can be increased. The foreign Investment announcement was very positive. But talking about NBFCs, Banks that used to fund, 80% of them are now closed. So, I doubt that the NBFC crisis have really been solved.

 

 

Hinesh Doshi, President – Tax Chamber, C.A

On the digital front, 2% TDS on all cash withdrawals above 1cr per year has been introduced. A big concern is for the non-corporate sector, the corporate sector tax rate is reduced to 25% from 30% for turnover below 400Cr this year. This will impact partnership firms, proprietary firms and LLPs because majority of the country deals with those kind of non-corporate entities. There are more than 2-3 Cr non-corporate entities. Every year government aims to add 1-1.25cr new tax filers and the biggest bottle neck was that everybody did not have pan card in India. Hence to get more people to file tax they linked aadhaar card to pan card, it’s a great move. I rate Budget 2019 at 7 on the scale of 1 to 10.

 

Hemant Parekh, Senior Vice President – CAMIT

Metal Sector expected a lot better budget  this year. We expected the government to address the issues regarding level playing field for filling raw materials, duty structure imposed on raw materials and TCS of 1% which is imposed on raw materials, but there was no sign of it. On the positive side, they are spending on infrastructure, having a good road infrastructure would enhance the moments of vehicle. Corporate tax rate which has been reduced to 25% is an excellent decision for entrepreneurs, it’s like a boon.

 

Dileep Bhatt, Advisory Board, SUFI

World compares China’s economy with other economies, what is that they have done differently? The difference is that their focus has always been on education, health and culture. Literate and healthy people have made the change and made the country that it is. After the independence, our country realised that we should have an education policy. In last 30-40 years the system has deteriorated. We need to have a solid policy where the children of India don’t feel the need of going to foreign countries to get quality education.

 

Abhishek Ray, Head – Legal and Compliance, ePayLater

“We are glad to note that at the very outset there were specific references to boosting Digital India and Startups in the 10 point vision of Hon’ble Finance Minister. The multiple initiatives announced for improving transport, in terms of road corridor, port connectivity and UDAN scheme will boost domestic trade. The MSME centric steps are also very encouraging in terms of allocation of more resources for loans and the creation of a platform for filings bills. All this will go a long way in helping small businesses.
The increase of the turnover limit for the lesser corporate tax bracket is a measure which will massively benefit the industry. In terms of startups, the angel tax related steps and clarifications are welcome, along with the steps to reduce tax scrutiny. We are very enthused to note that the Hon’ble Minister emphasised on the need for a cash free economy. Initial steps have been initiated for encouraging digital payments. However, the thresholds mentioned are quite high. This is a good start and we are certain to expect more incentives later on. Innovation is the backbone of the startup sector and for boosting industry in general. We are also very glad to note the boost being given to centers of higher learning to encourage research. Overall we think this was a well balanced budget which has balanced the aspirations of both urban and rural India.”