Union Budget 2016: How Tech Industry reacted?

Today was the big day for Indian Economy as there have been lot of speculations, expectations from all corners of industry to common man as the Budget Session was about to come. Though every one expected GST, boost in Make In India program and of course the most expected by a common man, increase in Tax slabs or some way or other get a cut in tax payments. Though, the NDA government didn't quite carry all these but in a balanced budget managed to keep enterprises satisfied and at the same time made Farmers and low class happier. Here are few reactions from industry top men and women.

Debjani Ghosh VP Sales and Marketing group , Intel

"The budget is strongly focused on bridging the divide between the ‘haves’ and ‘have not’s’, and good work by the Government in identifying the right priorities for focus under the 9 pillars called out by the FM. This budget, unlike any other, has not treated technology in isolation but integrated the effective use of technology across all the strategic imperatives in keeping with the intent of a Digital India. This budget has laid emphasis on governance reforms and ease of doing business, while highlighting the need for enhancing educational skills in order to make India a knowledge based economy. Intel along with NASSCOM launched the National Digital Literacy Mission in 2012 and we are very heartened to see the government’s continued commitment towards building  technology relevance at the grass-roots by extending NDLM to 6 crore rural households. We are disappointed with announcement of the R&D incentives reducing because we believe that it is critical for India to be one of the most innovative countries in the world and this move could be detrimental in building India as an innovation hub. I strongly urge the government to re-consider this move, as any restrictions on the R&D ecosystem are likely to decelerate innovation in the country and restrain the ambitious Make in India and Digital India vision." 

 Ambika sharma, Founder, Instappy

Government has recently been focusing a lot on the growth of woman Entrepreneurs in the country, cheering them to establish themselves. Allotting funds of Rs. 500 crores especially for them will encourage the startup ecosystem to reach another level. Furthermore, since last budget, service tax has been the topic of discussion and by giving 100% exemption; the Finance Minister has done his bit to act as an enabler. Startups can now more effectively and efficiently concentrate on establishing their businesses and weave their path.  

Soumitra Gupta, CEO, Togofogo

"We appreciate the Finance Minister’s move on Tax holiday for startups as every startup takes minimum three of five years to setting up the company. We welcome the effort by Indian government for startup industry. It will give a strategic boost to the current ratio of Indian entrepreneurs and will support the Startup India campaign by Modi Government."

Mr. Puneet Gupta, CEO, Buzzmeeh

"We welcome the Budget 2016-17 as it’s a well strategized move for Indian startup industry. 100 % deduction on profits for 3 out of first 5 years will definitely strengthen the base as it will assist in setting the right pace for the company. Additionally, the amendment to the Companies Act in order to ensure speedy registrations of fresh startups will also lend a positive boost to the startup ecosystem. These positive moves will surely encourage the entrepreneurs wanting to establish themselves as a key part of the economy."

Padmanabha Krishnamurthy CFO, Paladion Networks

"It is a comprehensive budget covering various sectors and is focused on growth. With regards to IT sector to be more specific, few positive aspects are - thrive on innovation and patents from India, extension of SEZ deduction, increased focus on digital initiatives spend including rural areas are few things to mention.  Though we will have to wait for more specifics, overall I think it is balanced budget.  If government can emphasize on implementation of various schemes announced, it can be a real boost to our economy. 

Ms. Kulpreet Kaur, co-founder Shop Pirate Coupons

As expected the Union Budget 2016 has its focus on Standup India and boosting the budding entrepreneurs.   We expect that 2016 is going to be a fruitful for women entrepreneurs as  Stand Up India scheme allocated Rs.500 Crores for SC, ST and women entrepreneurs. However I am somehow not happy with the special treatment given to SC/ST entrepreneurs as this may discourage the upcoming talents who might not get an opportunity to bring an innovative business idea due to the scheme and at the same time might give an encouragement to someone who don’t deserve.  Though it’s a good move to encourage entrepreneurs who didn’t get a platform to showcase their skills, but ensuring that scheme benefits right people and keeping an eye of the system to maintain discrepancy, will be a tough challenge for the government. Allocation of Rs 1,000 crore for new EPF (Employees' Provident Fund) is welcoming. However no change in current taxation system is disappointing for ecommerce industry. Overall a good budget but not very impressive.

Kenny Ye, MD, UCWeb India

IT’S A CONSTRUCTIVE BUDGET

“Finance Minister Arun Jaitley has presented a well-rounded and constructive budget, focusing on most critical aspects of the economy.

Thrust on farm sector, increased spending on rural development and infrastructure planning shows that this government means business. The record digitization plan outlined is another major positive. The new digital literacy mission scheme will cover 6 crore additional households and bolster employability of rural youth. There is also the much-needed thrust on entrepreneurship training, higher education and skills development that will help make India a knowledge base. While the reduction in corporate tax is welcome, it is applicable only to select companies and is a minor negative. Measures to reduce tax hassles and address disputes, on the other hand, are a positive.

Tax exemption for Start-ups, amendments to Companies Act and allocation for Stand-up India scheme will further aid cost and ease of doing of business in India.”

  

Vinu Cheriyan

CFO & Director Operations at Sennheiser Electronics India Pvt Ltd

The Union Budget 2016-2017  significantly focuses on bringing socio economic development in the country while emphasizing on the nine key initiatives for economic reforms — agriculture and farmers' welfare, rural sector, social sector including healthcare, education, skills and job creation, infrastructure, financial sector reforms, ease of doing business, fiscal discipline, tax reforms to reduce compliance burden. It is heartening to see our accelerated to 7.6% and the CPI inflation has come down to 5.4%.  It is also quite encouraging to see that fiscal discipline has been given priority at today’s budget while focusing on the GDP growth.

Mr Sudarshan, COO & Co-Founder, CreditMantri

This budget has provided a number of benefits that has helped to increase cashflow and savings for the common man. Specifically additional Rs 50000/- deduction for first time borrowers, increase in limit of house rent paid to Rs 60000/-, increase in ceiling of tax rebate for small tax payers, will help lower and middle income groups to aspire for better & affordable housing. Further with more cash flow in the hands, he can plan finances better to either save or service loans and maintain good credit. 

Aditya Agarwal, Founder,Wealthy.in

"It took us 45 days to register our startup last year. Bringing it down to 1-day is disruptive. It's even faster than 3-days it takes to start a business in Singapore. The three-year tax-holiday and reduction of LTCG period for unlisted securities to 2 years is also a positive move for startups.It's promising to see digital-India at the core of many initiatives. Aadhaar based delivery of financial services and subsidies will promote financial inclusion and bring more Indian households under the formal banking system.Government could have done more to promote participation of Indian households in financial markets. Pre-budget, there was an expectation of raising section 80C limit to 2.5 Lakhs. This move would have helped households reduce tax-liability and also channel some savings to capital markets through ELSS funds."

Sumit Sood, MD, Global Logic India welcomed the budget

We welcome the Government’s plan to launch a mission to provide Digital Literacy for rural India, as it is a very forward looking move. One that will take the country closer to the goals of Digital India. The drive which will bring about 6 crore rural households under the umbrella of being digitally literate in the coming three years is definitely going to put India on the road to becoming an economic power. In addition, the move to create a digital repository for all school leaving certificates and diplomas will give the education system an edge it had hitherto lacked. Moving away from a paper-dependent to a digital-led system is a hallmark of all modern economies.” Said Sumit Sood, MD, GlobalLogic India.

He further added that “With significant attention on start-ups and Digital India, in the Budget, the Government has focused on tier-2 cities by providing higher budget allocation. This includes subsidies for infrastructural development and internet penetration. We believe that these steps provide a stronger thrust to the Digital India vision of the government. The Budget also reflects the Government’s increased focus on technology to support India’s economic growth.