budget 2017
BUSINESS

Post Budget Reaction from Indian CEO’s and Startups

Devendra Rane, CTO & Co-founder, Coverfox
“With this budget, the Finance Minister has rolled out measures that will indirectly but effectively contribute towards a Digital India. Aadhar-enabled payment system (Aadhar Pay), Aadhar based health cards for senior citizens, web-based platform for defence pensioners and schemes to promote BHIM app are all moving in that direction. A digitally involved India will be more open to cashless transactions, which is welcoming news for the FinTech ecosystem.”

Swati Bhargava, Co-founder, CashKaro.com

Good part about the budget is that it is extremely focused on the core that forms Indian economy: Rural, Agriculture, SME and Middle Class. As a woman entrepreneur I also appreciate the special emphasis has been given on women empowerment in the Budget as the FM has allocated Rs 1.84 lakh crore for women skill development. The budget is focused on propelling the digital economy of the country though benefits to startups could certainly have been more. Concessions to startups have been limited and only startups which are recognized by DIPP will pay tax on profits for three out of seven years, increased from three out of five years. The budget has not offered big tax sop to corporates but has announced reduction of the corporate tax rate from 30 per cent to 25 per cent for those with an annual turnover of up to Rs 50 crore.

It was heartening to see the increased allocation towards public expenditure and building infrastructure in India which now includes affordable housing as it will encourage long term growth. At last GST Council finalized its recommendations but till the time it is implemented no change in excise and service tax rates for now, which could have been considered. FM has recognized the contribution of the salaried class to the Tax Revenues yet I feel did not meet the expectation of Standard Deduction of this class of tax payers. It has only proposed to reduce existing rate of taxation of those with income between Rs 2.5 lakh to Rs 5 lakh from 10% to 5%. Overall, I feel it is a mix of a populist and a progressive budget with an emphasis on fiscal prudence.

Good to see Rs 1.84 lakh Cr for women skill development in #Budget2017 though concessions for #startups could have been more.

 

Sumit Sabharwal – CEO (Managed Services) & Managing Director (SAARC), Excelity Global.
“We are delighted and welcome the Union Budget 2017 where the proposals have huge benefit for the growing India private sector workforce. It provides impetus and greater momentum towards a digital economy to make India more competitive on a global platform. Budget announcements will further encourage Excelity’s endeavor to add value to our client’s employees with superior, innovative, simplified and customized value-based technology and mobility offerings,”

 

Mr. Abhiraj Bhal(Co-founder, UrbanClap)

“The new policy proposed in the budget, allowing startups a 3 year tax holiday in the first 7 years of their existence is a welcome change. However, this policy could have been more impactful had it included startups incorporated prior to 31 Mar’16, and extended the period when the tax holiday can be availed from 7 to 10 years. Equally importantly, while the present Ministry and Department are very committed to their work, to avoid future mis-use of this policy, clear guidelines and definition of a startup should be laid out, and any subjectivity in the granting of these tax holidays avoided.”

Mr. Rajiv Vij(CEO & MD, Carzonrent.com)

“The Union Budget presented brings out the progressive outlook of the government for Businesses as well as individuals. The investments proposed in the area of skill developments are a welcome step. The investments in building National Highways is a welcome step for the car rental industry. The impact of the demonetization drive is visible with progressive steps taken for an inclusive and cashless economic future of India.”

Ms. Sakshi Vij (Founder & CEO, Mylescars.com)

“The Union Budget presented is a welcome change. The governments focus on inclusion and encouragement of the MSME sector along with Startups is visible. The increase in the Profit linked deductions period to 3 out of 7 years is a welcome change for young startups like us. The exemptions proposed for the Indian entities with Foreign placed portfolio investments is also a step in the right direction.”

Ms. Sangeeta Banerjee(Co-Founder & CEO – ApartmentADDA)

“When it comes to Real Estate / Housing, the Budget is solely oriented towards boosting Affordable Housing, as expected. Affordable housing defined as House Cost up to Rs.50Lakh or Carpet Area of 300 sqft in metros and 600 sqft in other cities.. This definition varies for different benefits in the budget.
For urban Apartment Communities or RWAs, a positive Budget announcement is for the Govt will Undertake important reforms by providing legal framework for dispute resolution and re-negotiations in PPP projects and public utility contracts.
Many Apartment Communities or RWAs wish to build or maintain public amenities in their neighbourhood in partnership with Govt. This could be Parks, Lakes, or even Last Mile Roads. A robust PPP framework as well as dispute resolution will make this a win-win for the Gov as well as forward-thinking neighborhoods.”

Mr. Sunil Gupta (Founder & Director, ExportersIndia.com)

“With “Transform, energise, and clean India, that is Tech India” this budget has upped allocation for rural, agriculture and allied sectors by 24% has opened scope for increasing investments and yielding multiple benefits. The rapid growth in manufacturing sector is a good sign for overall economy. The new FDI policy is a welcome move. MSMEs and start ups have all the reasons to cheer with a dip in income tax to 25% for companies with an annual turnover of Rs.50 crore. Their grin grows wider with the FM proposing dip in bank lending rates. Incentives such as cash backs, referral schemes on BHIM app is all set to push the use of digital transactions which is yet another reason for MSMEs to move to online business models. The lowering of Income tax would also increase the spending capacity which will benefit the SMEs.”

Mr. Vishwavijay Singh, Co-founder, SaleBhai.com:

“The hero of the Union Budget 2017 is definitely the rural sector, with finance minister Arun Jaitley allocating Rs 1,87,223 crore for rural-agri development. He spoke of doubling farmer income in five years, keeping agriculture credit at Rs 10 lakh crore, and increasing cultivation area for kharif and rabi crops among a slew of forward-looking measures. Another important feature of the Budget is the Government’s resolve to ramp up infrastructure, which should help in taking forward the government’s Digital India campaign. As an e-commerce player, I see consumption in rural areas going up. With rural areas likely to witness greater digital penetration, the e-commerce sector is surely to benefit.”

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Post Budget Reaction from Indian CEO’s and Startups
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