- Education And Career
- Companies & Markets
- Gadgets & Technology
- After Hours
- Banking & Finance
- Energy & Infra
- Case Study
- Web Exclusive
- Property Review
- Digital India
- Work Life Balance
- Test category by sumit
Budget 2022 | Reactions From Corporate Experts
Here is how the corporate sector reacted to the Union Budget announcement made by Finance Minister Nirmala Sitharaman
Photo Credit : India Picture
Finance Minister Nirmala Sitharaman on 1 February presented her fourth Union Budget for the financial year 2022-23. As per the FM, this budget will lay the foundation for economic growth through public investment as Asia's third-largest economy emerges from a pandemic-induced slump.
"The touchstone of the master plan will be world-class, modern infrastructure and logistics synergy among different modes of movement of both people and goods, and location of projects," Sitharaman said.
Here is how the corporate sector reacted to the Union Budget announcement made by Finance Minister Nirmala Sitharaman:
Dinesh Khara, Chairman, SBI
“The budget continues to strike a balance between the challenges posed by the recurring COVID-19 waves and the need to contain the economic damage due to pandemic. The budget achieves this delicate balance quite well. The emphasis going forward is on seven parallel tracks - PM GatiShakti, Inclusive Development, Productivity Enhancement & Investment, Sunrise Opportunities, Energy Transition and Climate Action and Financing of Investments. On the banking and finance side the announcements are significant. The budget proposes to set up 75 Digital Banking Units (DBUs) in 75 districts of the country by Scheduled Commercial Banks. This proposal is in sync with our ongoing digital banking initiatives. The most significant announcement of the budget are higher allocation to Capital expenditure and extension of ECLGS - particularly the specific support to hospitality & related sectors. The Budget is a very well-crafted statement of intent, drawing from the experience and enhances growth prospects of India in post COVID world.”
Nilesh Shah, Group President & MD, Kotak Mahindra Asset Management
"This budget is focussed on supporting growth through encouraging investments and encouraging entrepreneurs, starts ups and tax payers by creating trust.
Capital expenditure has moved from 12 per cent of budget in FY 15 to 19% of budget in FY 23. Revenue Receipt growth at 6% is significantly lower than 27 per cent last year. This is driven by significantly lower divestment and asset Monetization target. Hopefully there is an upside on revenue receipts.
This budget is about laying the foundation for the positioning of centenary of India. 68% of defense capital allocation to local manufacturers, launch of CBDC, focus on organic farming and environmental issues / climate change, developing logistics in India, digital banks and futuristic policies like battery swapping or inter operatibility standards etc will be the building blocks."
YS Chakravarti, MD & CEO, Shriram City Union Finance
“The Union Budget 2022 is a CAPEX-driven budget with a slew of measures across sectors, leaving no stone unturned. Given the challenging circumstances, it’s a bold budget, a growth-oriented budget that will result in a multiplier effect and benefits to all. The extension and widening of the ECLGS scheme & revamped CGTMSE will aid recovery of the hardest hit MSMEs. The battery swapping policy is a positive measure for electric vehicles (EVs) which will give a boost to the sector and lend to the clean energy segment. Housing project allocation of Rs 48K cr will give a fillip to affordable housing and the specific affordable home loan segment. As part of the digital push, digital banking has been encouraged, this will assist the overall development of digital infrastructure and enable greater participation in digital lending.”
George Sam, Business Head & Co-Founder at Mindgate Solutions
"We applaud the government’s conviction in digital banking and welcome the move to set up 75 Digital Banking Units in 75 districts in the country. This will be a step towards ensuring the citizens of the country, especially in the rural setting, are empowered and benefitted through digital banking systems. This was something quite visible in urban areas so far. Thus, the nation-wide transformative potential of the FinTech sector is well poised to be realised.”
Vikas Singhania, CEO, TradeSmart
"Road construction was given a boost by increasing the target to 25,000 kms of National Highways construction. Comparing this to the current construction of around 13,000 kms the target is almost double than the current level.Also, bringing all key transport ministries under the Gati Shakti plan is a positive step for the logistics sector. The EV sector received a boost with cities being encouraged to introduce zero-fossil fuel policies and urban residents encouraged to increase ridership on public transport and use of electric mobility. The private sector has been encouraged to build business models for battery-as-a-service. To encourage use of EVs, battery swapping and charging infrastructure will be scaled up and interoperability standards formulated. The steps will go a long way in promoting EV sales in the country."
S Ravi, Former Chairman of BSE and Founder & Managing Partner of Ravi Rajan & Co.
The union budget is a growth oriented budget focusing on rural infrastructure, cooperative societies and improving connectivity through PM Gati Yojana. Gati Sakthi would really catalyse the growth. Reduction of MAT and surcharge for cooperatives is a welcome step. Laying down of optic Fiber in villages and rural India is a step to unifying urban with rural India. Agriculture tools would be cheaper which is a very good step for farmers.
This budget also clarifies about government’s stand on crypto currency by stating that digital currency would be part of the economy from the year 22 -23. Taxing of crypto transactions including gifting to the extent of 30% of income is a Very significant step.This step actually gives a way forward for the crypto industry.
The budget focuses on Agro Tech digitalisation &climate action. Increase in Capex would help in promoting manufacturing.extending the ECLGS scheme up to 5 lac crores is primarily motivated to mitigate the suffering of the industry.
State Government will get additional 1 lac crore interest free loan. State Government employees will get higher deduction of 14% for Nps.
The budget does not otherwise touch individual taxation. This budget basically focuses on Atmanirbhar Bharat and looks primarily to speed up the GDP growth.
Tarun Kumar Bansal, President, Sagacious IP
2022 looks like the most opportune year for Indian startups with Ms. Nirmala Sitharaman specifically mentioning the relevance of startups and their contribution in building Indian ecosystem. With India’s ranking on the Global Innovation Index moving from 81 to 46th position, there is a lot of hope penned on startups.
The Government in its efforts thus far, has given a significant push in creating an innovative ecosystem but it was a little disappointing to witness no further move of the Govt in making this ecosystem bigger through incentivizing IP and Patent Creation. Intellectual Property Index demonstrates a country’s capability and appetite to commercialize and capitalize on innovative and disruptive ideas. Unless IP and Patent Creation is incentivized, it will be very difficult to make Indian startups and MSME’s globally competitive and even missions like ‘Make in India’, ‘Make for the World’ and ‘’Atmanirbhar Bharat might get derailed if such steps aren’t taken in future. Economies like China have emerged as one of the global IP hub by heavily incentivizing creation of IP by local inventors.
We look forward to seeing focussed initiatives around IP and its related subjects in future budgets to propel R&D, innovation and technology commercialization. I am sure that incentivizing IP and patent creation can have a multiplier effect on the innovation index and can enrich the country’s current IP landscape.
Prashant Ruia, Director, Essar Capital
“A blueprint budget with a nice touch of green! A bold one with a massive hike in public investment will be the booster dose to restart corporate investments. The infrastructure allocation with a focus on technology will generate employment & help transform tomorrow!
Akash Sinha, CEO & Co-Founder, Cashfree Payments
“Budget 2022 is a reflection of consumers' trust in digital-first approach to banking & finance. Economic Survey 2022 highlighted that UPI is currently the single most extensive retail payment system by volume, reiterating its wide acceptance. This has contributed immensely towards driving digital transformation in the country. Additionally, the idea of setting up digital banking units in multiple districts will help in the homogenisation of the financial services in rural and semi-urban geographies. The launch of digital currency by RBI is both encouraging and critical in empowering the digital native youth to take a transformational leap from the conventional currency tools. We have witnessed an increasing use of blockchain technology to simplify and secure the consumer’s journey, and this push was required to encourage innovation in this domain. Fintechs and startups must help stakeholders establish connections with remote locations and provide value-added services to the underserved and unbanked segments.
Moreover, the 5G spectrum technology and the scheme for the penetration of fibre optics across villages will boost the growth of rural and gig economies. We also compliment the Hon’ble Finance Minister for the support extended to the startup ecosystem via reforms in taxation, incentives, investments and other benefits that will promote Make in India and Digital India initiatives. We feel that the announcements made during the budget session display the growing importance of startups and their ability to exhibit agility and purpose alike.”
Dr Ramesh Kancharla, Chairman and Managing Director, Rainbow Children’s Hospital
"We are happy with the announcement of the Digital Health Eco System which will go a long way in providing a national registry of the healthcare infrastructure of the country. This will improve transparency and information flow of key healthcare parameters across the country. Given the challenges in mental health thrown up by the pandemic, the National Tele Mental Health Programme is another welcome step.
India has managed the pandemic phenomenally. The size of the country and the demographic distribution are unique challenges that have been managed through one of the largest vaccination programmes in the world. Also the effective use of technology through the Cowin and Arogya Setu App have helped in identifying, tracing and managing Covid cases.”
Anil Chaudhry, MD and CEO, Schneider Electric India
“The FY23 Union Budget lays strong impetus on sustainable development. Sustainability has steadfastly become an urgent priority and the proposal to issue sovereign green bonds for building green infrastructure will go a long way in creating a low carbon future and reducing carbon intensity of the economy. This is in line with the government’s commitment on climate action at COP 26. The budget also emphasizes on energy efficiency and energy transition for reducing emissions. Saving energy is an important aspect of energy management. Hence, energy efficiency and savings measures will be promoted. This will be done in large commercial buildings through the Energy Service Company (ESCO) business model. It will facilitate capacity building and awareness for energy audits, performance contracts, and common measurement & verification protocol. The proposal of thematic funds for mobilising blended finance with government share capped at 20% will also allow fund mobilization for emerging sectors like digital economy and climate action.”
Kumar Binit, Co-Founder & CEO, Finmapp
The Budget was all about growth and this can only happen with considerable increase in Capex expenditure, which the FM has increased by approx 35%. The increase in Capex expenditure directly /indirectly will lead to macro as well as micro growth of the economy.
The focus on digitization was written all over the FM’s speech as she announced Digital banking unit, which is a great step towards financial inclusion through clarity on implementation is needed. Connecting post offices to banking Infra digitally will also help tremendously in ensuring financial inclusion. The initiative will help in ensuring lesser operational headaches and low cost for the government vis a vis managing physical currency. The initiative also confirms the importance of blockchain as a technology, which a lot of companies have started implementing in various processes.
FM’s digital push is a great initiative in Education/Skill Development and Health sectors keeping in mind that the pandemic is nowhere seen as ending in near future and thus a digital push on online training and education will help a majority of population living in rural areas and the most affected ones. Physical infra for skill development / education and health ecosystem is being replaced by digital push which will help in creating more jobs.
The FM has also increased tax relief by increasing the period of incorporation by one year till March 31, 2023; we believe that 5 years would have been a much better number as startups take at least 2-3 years to become profitable.
Nishant Arora, Co-Founder, Sixth Element Finserv’s Setup Services India
In the Budget, the Government's goal was to complement macro-growth with micro-all-inclusive welfare, digital economy and fintech, tech-enabled development, energy transition and climate action. The announcement of the launching the Digital ecosystem for skilling and livelihood will lead to the growth of startups; the development of Digital universities will provide manpower to strengthen the startup ecosystem further. Another positive for the startups was an extension of the period of incorporation by one year until March 31, 2023, for tax relief. It was a balanced Budget where every sector was given due consideration with a special focus on streamlining the growth after the effects of the pandemic. Government directly venturing into blockchain shows that technology is the way to go ahead. The budget also highlighted that all startups will be promoted to facilitate ‘drone Shakti’ for the promotion of drone as a service, it is a big leap for tech startups. The new tax rule was a unique addition, wherein taxpayers can file an updated return on payment of taxes, within two years from the end of the relevant assessment year. However, corporate employees were pinning high hopes on a move like providing benefits to salaried individuals by extending standard deductions and increased allowance of medical expenditure amid the pandemic.
Sudip Bandyopadhyay Chairman Inditrade Capital
“The highlight of Budget 2022 was the way in which it laid out a blueprint for India’s digital transformation, as can be seen from its proposals for numerous facets from education to digitalization of the rupee. It completely delivered on expectations of expanding capex without taking the fiscal deficit to perilous levels. Overall, I would say it was an intelligent, innovative and very progressive budget. Now the proof of the pudding will be in the execution.”
Puneet Gupta, Managing Director & Vice President, NetApp India
“I am excited to see the government’s focus on technology sector, as a whole. The incentives towards creating digital infrastructure, education, and skilling, spell out the intent on developing the country’s human capital. The emphasis of digitised skilling will help make our country's youth future-ready. Additionally, the announcement on RBI introducing digital currency and the government providing infrastructure status to data centers, will help create a framework for emerging technologies making the digital India Inc better and stronger.”
Sunil Sharma, managing director – sales, Sophos India & SAARC
“The Union Budget 2022 presented by the Government of India is built on the foundation of introducing new technologies across sectors. From education to finance, logistics, and healthcare, the bedrock of change will be driven by tech. The Government has further proposed the introduction of the digital rupee. While this will definitely enhance efficiency and promote growth, increased digital penetration also brings with it additional cyber risks that one should be vary of. As a step towards mitigating cyberattacks, the Government plans to set up broadband in villages as well as the Digital DESH e-portal. This will help equip youth with the right skills, including cybersecurity skill sets, needed to operate safely in today’s tech-driven world.”
Dhruvil Sanghvi, Founder & Chief Executive Officer, LogiNext
“We welcome the move by the Government of India to boost logistics as a means towards ensuring economic growth. The proposal to set up a Unified Logistics Interface Platform is a welcome move. Leveraging technology to complement the development of infrastructure will help bring in better efficiency. Furthermore, with real-time tracking, and inventory management as a part of the platform, this will go a long way in bringing India at par with global supply chain networks. LogiNext has always been an advocate for digitisation of supply chains, and it is reassuring to see the Government work towards this. The decision taken to extend the tax incentives provided to startups till March 31, 2023 is a reflection of the Government’s commitment towards ease of doing business in India.”
Ambareesh Murty, Co-Founder & CEO of Pepperfry
“It is heartening to see the Government looking at economic growth not just for the next year, but the next 25 years. Budget ’22 has provided a significant outlay to infrastructure investments which will benefit supply chains. Businesses will be able to deliver products to consumers faster, seamlessly, and at better prices. At a time when work from home has become mainstream, this will enable consumers to furnish their homes to their taste and evolving requirements without burning a hole in their pockets.”
Kunal Nagarkatti, CEO, Clover Infotech
“The Government’s focus on creating a strong digital ecosystem to enhance banking and financial inclusion is a step in the right direction. Bringing all post office banks under the core banking ambit will enable seamlessness in digital payments and online transfer of funds and accelerate financial inclusion. The setting up of the Digital DESH e-portal for skilling initiatives is the need of the hour as it will bridge the gap between the supply and demand for digitally skilled and technically strong resources.”
Niraj Hutheesing, Founder and Managing Director, Cygnet Infotech
“The advancement in enhanced transparency of payments is a huge stride forward for India in terms of fintech innovation. The proposed end-to-end online e-Bill system will enable increased productivity for industries that go completely paperless. This will prove to be extremely fruitful for digitization. Furthermore, the acknowledgement that India's GST collection stands at Rs.1.4 lakh crore for the month of January 2022, exemplifies the growing need for digital taxation solutions that promise to take the Indian economy to the next level.”
Mohit Nirula, CEO, Columbia Pacific Communities
The Union Budget for 2022 announced by Hon’ble Finance Minister Ms. Nirmala Sitharaman would prima facie disappoint many.
As a creator of and service provider to senior living communities, we are disappointed that none of the initiatives announced bring succour to the demographic we serve – senior citizens.
There were no announcements about making homes in senior living communities more affordable or any rationalisation of the high 18% GST levied even as the collection for January 2022 touched a record high.
That said, over the past many decades, we have gotten used to what can best be described as “tinkering” of the direct and indirect tax structure, or impex subsidies, which are industry specific. But while these measures were welcomed on news channels and by the sentiment-driven stock market, they make no real impact in the long run.
This budget, on the other hand, coming as it does at the end of two years of the economy being severely affected by COVID – 19 has taken a more strategic view of the economy with increased investment in infrastructure. The government, while juggling with its own fiscal responsibilities has maintained its focus on all-inclusive welfare initiatives. Hopefully this approach will stimulate the economy by massaging both the demand and supply side of the equation.
As with any budget, the devil is in the details, the fine print and most importantly the implementation. So for now let’s wait and watch.
Abhijit Roy, Managing Director, Berger Paints
A lot of emphasis was placed on capital expenditure which augurs well for the growth of the economy and job creation especially in the medium to long terms. The focus on green, environment friendly, sustainable as well as digital technologies is also to be appreciated. All of these fit in well with our strengths in Protective Coatings where we are the market leader and in our top end international technology based ETICS business which is capable of energy saving by 30% delivering savings for consumers and reduction in energy consumption.
Maithili Appalwar, CEO, Avana
"The Union budget announced today has addressed a lot of the needs and expectations of the agricultural centre while ensuring long term advancement. The Union Budget has introduced measures to promote and provide sustenance to the rural population of India. The initiative started by the government to converge the links of 5 major rivers will prove of utmost importance to provide irrigation in the years to come. The Union Budget has introduced a pragmatic integration of technology and agriculture by introducing Kisan drones that will be utilized for crop assessment, land records and spraying of insecticides. This amalgamation of the two sectors will highly benefit the farmers in the long run and provide a time-efficient solution for the same while spurring better opportunities and development for them."
Dr Maithili Tambe, CEO, The Academy School, Maharashtra
Two important points on education are worth highlighting in the Union Budget. First is the digital infrastructure: due to the COVID-19 pandemic outbreak, the whole education system had to shift online. Teaching every child was the biggest challenge any school could face. Through One Class, One Channel, it will become much easier to reach every child.
Second is the upgradation of Anganwadis: they are usually taken as daycare centres, but it is a base for any education system. Equal importance should be given to early childhood education as well. That said, the implementation of these measures should be effective and time-bound.
Dr. Dishan Kamdar, Vice-Chancellor, FLAME University
“The decision to establish the digital university is a disruptive and futuristic decision that will benefit a large number of students even from the remotest part of the country by making world-class education accessible. This will surely give wings to the dreams of deserving students and meet the goal of providing high-quality education to all students across the country.
The plan to increase the 'One Class One TV Channel' from 12 to 200 TV Channels in all States in India will enable students to learn through radio and DTH channels thereby overcoming the problem of internet connectivity. The two decisions truly reflect the Government’s aims to leverage technology advancements and use them as tools to meet the educational aspirations of a large number of students in the country. They have set an example that is worthy of being emulated by others.”
Rakesh Kaul, CEO, Clix Capital
“The all-time high GST collections in January 2022 at Rs 141,000 crore is good news and indicates a steady bounce back in economic activity despite the Omicron wave. The estimated GDP growth of 9.2% in FY2021-22 and the expected reduction in the fiscal deficit from 6.9% in FY2022 to 6.4% of the GDP in FY2023 also augurs well for the economy, presuming these projections hold true.
The other bright spots include the decision of extending the period of incorporation by a year for startups to avail of tax incentives till 31 March 2023, establishing 75 new digital banking units in 75 districts via scheduled commercial banks to help ensure a pan-India reach and allocating INR48,000 crore to boost urban housing, among others. These measures will benefit multiple verticals, including the BFSI segment.
The announcement of a digital rupee using blockchain is exciting per se, but one needs to wait and watch whether there will be any specific benefits for this asset class. But the 30% tax on any income from the transfer of digital assets can act as a dampener on efforts to create a virtual digital economy.
The capping of surcharge on long-term capital gains tax at 15% on transfer of any asset type is another commendable measure. Overall, the Budget should give a boost to the fintech segment.”
Akshay Mehrotra - Member at FACE and Co-Founder & CEO at EarlySalary:
This budget, with its focus on digital inclusion and using digital to increase access to finance is a welcome one. As a Digital lender, EarlySalary is delighted to participate in this democratic solution for leveraging demographic-dividend. This will mean for the middle-class India to afford products and services using responsible-credit mechanisms. As a FinTech industry player, we welcome the idea of digital banks in a few districts, as well as bringing Post Offices to the core banking system. This would be a precedent for the Digital-only-banks and could become a reality soon.
Madhusudan E - Member at FACE and Co-Founder & CEO at KreditBee:
Union Budget 2022-23 had special emphasis on Financial Inclusion, technology adoption and entrepreneurship, which is highly appreciable.
Initiatives like Desh stack e-portal and interlinking of Udyam, e-shram, NCS and Aseem portals will surely contribute to the Digital Infrastructure and entrepreneurial push.
Introduction of Central Bank Digital Currency (CBDC), leveraging blockchain technology will influence the digital transactions and hence its implementation process will be something to pay attention to. Government’s recognition of startups as the drivers of economic growth is heartening. Measures like setting up an expert committee to suggest measures to help attract investment and extension of tax incentives period for startups incorporation by 1 year, will certainly aid in creating a healthy startup ecosystem. Equally encouraging is the Government’s bid to boost digital banking and financial inclusion with initiatives like bringing 100% of 1.5 lakh post offices into the core banking system.
In a broader sense, the Finance Ministry has presented a distinctive set of measures in Union Budget 2022-23, with a streamlined focus on rapid, holistic and inclusive economic growth.
Ashish Jain - Member at FACE and CFO at LoanTap:
The budget is progressive and addresses all the major expectations from various sectors including Fintechs, EVs, MSMEs, startups, etc. Allowing an extension of tax incentive by another year will hugely benefit the newly started ventures and will motivate the players to contribute to the macro-economic growth. The FM has suggested setting up an expert committee to monitor mobilization of funds to start-ups through VCs and Private equities which is a major welcome step. The introduction of central bank digital currency will further boost the digital economy and will hugely benefit the Fintech ecosystem. With the setting up of 75 digital banking units in the next two years, India is set to become a robust digital economy.
Nikhil Sikri, CEO & Co-founder, Zolostays
"We welcome the measures announced by the Hon'ble Finance Minister in the Union Budget 2022-23. The budget shows a big promise towards the real estate sector which in turn throws the door wide open to investments in pre-leased residential properties. The budget’s key highlights include a focus on urban development that will push the demand for much-needed rental housing in cities with the rising number of migrant workers. This, in turn, will boost the overall economy and with this we expect the housing market to improve further."
Akhil Shahani, Managing Director, Thadomal Shahani Centre for Management, Shahani group and CEO, Ask.Careers
"Considering the experience of e-learning in the pandemic, it is good that the government is seriously looking at integrating online technology to make our education system more inclusive for the less-resourced segments of the population. However, it is important to realise that online technology is no substitute for good quality brick & mortar schools & colleges, as many students have fallen behind over the last 2 years of the lockdown. So, it would have been important for the government to have focussed on efforts to train more teachers & support the building of more institutions."
SP Jain School of Global Management, Nitish Jain, President – S P Jain School of Global Management
"From the standpoint of higher education, the budget is headed in the correct path by focusing on improving the digital infrastructure in the country. Moving ahead, the execution, and how quickly these things move will be the most important factors to watch. Education is what propels the economy and the country forward, and I am confident that Budget 2022 will go a long way toward ensuring that education remains at the top of our country's priorities."
Shashank Khade, Co-Founder & Director, Entrust Family Office
"This is a Budget that is focused on prioritising capital expenditure as a key lever for growth, which we endorse as an approach given the multiplier effect of many of these investments. In that sense, the budget augurs well for the economy and the continuing decline in revenue expenditure as a share of total expenditure towards capital expenditure improves the quality of expenditure. To put it in context, the 35 per cent increase in capital expenditure, 55 per cent increase in Road sector allocation and 17 per cent increase in railways are significant numbers. On top of this is support to state governments towards capex. Of course, the execution of projects in these areas and in urban infrastructure is key towards enjoying the full benefits of this expenditure. The other point to note is that a larger share of defence capital expenditure is targeted to domestic procurement that could also have second-order implications for R&D and multiplier effects in the economy."
Akash Sinha, CEO & Co-Founder, Cashfree Payments
"Budget 2022 is a reflection of consumers' trust in a digital-first approach to banking and finance. Economic Survey 2022 highlighted that UPI is currently the single most extensive retail payment system by volume, reiterating its wide acceptance. This has contributed immensely towards driving digital transformation in the country. Additionally, the idea of setting up digital banking units in multiple districts will help in the homogenisation of the financial services in rural and semi-urban geographies."
Jaya Vaidhyanathan, CEO, BCT Digital
The Union Budget 2022 has lived up to expectations on many fronts. The FM has delivered a budget that addresses holistic measures to take the economy towards the $5 trillion targets. Overall finances seem to be in good shape, with a fiscal deficit for FY22 at 6.9 per cent, and GST collections at a record Rs.1.4 lakh crore in January. The Capex budget has been increased by a steep 35.4 per cent, which is the need of the hour."
Madhusudan Ekambaram, Co-founder and CEO, KreditBee and Co-Founder, FACE
"Union Budget 2022-23 had special emphasis on Financial Inclusion, technology adoption and entrepreneurship in the Union Budget 2022 -23, which is highly appreciable. Initiatives like Desh stack e-portal and interlinking of Udyam, e-shram, NCS and Aseem portals will surely contribute to the Digital Infrastructure and entrepreneurial push. Introduction of Central Bank Digital Currency (CBDC), leveraging blockchain technology will influence digital transactions and hence its implementation process will be something to pay attention to."
Shachindra Nath, Executive Chairman and Managing Director, U GRO Capital
"The extension of ECLGS scheme by Rs. 50,000 upto March 2023, with a special focus on ailing hospitality sector is crucial to facilitate its faster recovery. The credit support has also been provided in the form of Credit Guarantee Fund Trust for Micro and Small Enterprises (CGTMSE) revamp with credit of Rs 2 lakh crore for micro and small enterprises. These initiatives will help financial institutions to mitigate risk and stimulate credit outreach to MSMEs. The Government also announced inter-linking of Udyam, e-SHRAM, NCS & ASEEM portals and providing services such as credit facilitation and entrepreneurial opportunities.
Ankit Gaur, DGM – Marketing & Sales, Livpure
"This budget of 2022 which was announced by FM Nirmala Sitharaman stated that India is going to provide duty concessions for certain electronics manufacturers and thus provide much-needed relief for those sectors. The budget will also be introducing the next phase of doing business and also will be launching ease of living. It will also encourage the private sector to create sustainable and innovative business models for battery and energy as a service, improving the efficiency in the EV ecosystem. India is growing at a phenomenal pace with it being highest in all major economies, and this country is now in a significant position to withstand external pressures. We now have the goal which is complemented with micro-all-inclusive welfare, digital economy and fintech, tech-enabled development, energy transition and climate action. This budget is also poised to provide an impetus to growth and initiate an economic recovery taking advantage of public investments and capital spending."
Tarun Arora, Director of Finance and Operations of IG International
"The 2022 budget has been excellent for us. India’s already at an amazing growth rate. This budget will facilitate maintaining it. We can see the vision of the government for the next 10 years. The focus on agriculture is welcomed and much needed in a country like India. The way focus has been given on agriculture including reviving agricultural universities, the inclusion of tech like Kisan drones for agriculture farming, Agri tech players schemes in PPP mode is a welcome move as well. The government has pushed sustainability along with growth. They have the intent to shift the logistics only from roads to multi-model for home-grown companies. This will help improve time management. Cargo terminals will help in Gati Shakti’s development as a result it will lead to the development of infrastructure. We were hoping there would be more on the cold chain facility as it's integral to the perishable supply chain as well. Overall, it is a Budget with an aspiration to revive the economy, which will bring further growth to the economy."
Sumit Sharma, Co-founder, GoBOLT
"The overall budget seemed very growth-oriented in terms of boosting logistics and supply chain industry in India with PM Gati Shakti Master Plan. The plan will help in cutting logistic costs, increase cargo handling capacity and reduce the turnaround time, further fastening and smoothening the supply chain of goods. Currently, logistics and supply chain expenses represent 12 to 13 per cent of GDP, compared to an international average of 8%. With Gati Shakti, India will gain a foothold in the construction of an integrated, harmonized transportation and logistics grid with Gati Shakti."
San Banerjee, Co-founder and CEO, ADDA
"Policy focus on EV charging infra was much needed. With its inclusion in the current budget, We hope Apartment communities will also receive policy guidance on this. Combined with Ev this budget’s commitment to promoting public transport is the balanced approach towards reducing carbon emissions. Formulation of Modern Building By-Laws is a welcome and long-awaited policy update for urban as well as rural planning. The stress on developing urban planning expertise of the country is highly encouraging - by the formation of a high-level panel for it and identifying 5 institutions of excellence in urban planning. Apart from these, the continued focus on pm was yojana, tap water connections to homes, are all commendable policies for affordable housing."
Ajay Garg, Managing Director, Equirus
"Capital intensive support for growth was need of the hour to help revive the growth momentum and add to the various capex momentum that could be followed by the private sector. A much stronger corporate balance sheet along with strong capital markets will be able to absorb the resultant pressure of higher than expected fiscal deficit and resulting impact in terms of borrowing and rates. In addition, the push for domestic manufacturing will continue to drive the agenda for growth and job creation. Softer issues such as accelerated corporate exit, surety bonds instead of bank guarantees will go a long way in easing business.
Kamal Manocha, Founder & CEO of PMS AIF World
"The budget is progressive, inclusive and impactful, but it seems non-event because the government has been working throughout and many structural reforms have been happening on an ongoing basis and the budget is just a step in that direction. Some may feel disappointed as the budget doesn't give any direct benefits to individuals or any community. But, it must be remembered, it's an economic budget and not a social budget, and so rightfully, it addresses the economic aspects and thus thoughtfully allocates resources to creating more employment, better infrastructure, higher security. The essence of Budget 2022 is to create a foundation of a steadily growing economy which attracts Private as well as Foreign direct investments."
Varun Sarin, Co-founder, Director at PeopleAsset
“Overall, the Union Budget for 2022 is growth-oriented and consistent with the policies and initiatives introduced in last year’s budget. With an increased and long-term focus on digitization, building a sustainable future, incentivizing manufacturing, the budget has provided concrete and progressive steps towards the nation’s recovery, uplifting the Indian middle and lower-middle class. There is a steady commitment towards several sun-rise areas of growth – go digital, go green, AI, genomics, green energy, the digital rupee; pushing for a new era of growth in India. There was a lot of anticipation and curiosity about cryptocurrency and investments. As was expected, the Government cautiously tried to include crypto, recognizing this growing digital asset trend and making them taxable. Another step in the right direction is the extended ‘tax holiday’ for startups. This is a huge incentive for the Indian startup ecosystem. Tax exemption will inspire and encourage emerging entrepreneurs. The country has over 60,000 recognized start-ups and progressive decisions like these will only help that number grow. The increase in public investment on capital expenditure by 35% is a necessary and strong move by the Government. It will help in creating jobs across the country and that is a pressing need of the hour. Keeping the disinvestment targets low for next year is also a sensible move and leaves more room for the Government to seek appropriate opportunities and over-achieve the target.”
Ritesh Kumar, Country Lead, Wiley India
“It is heartening to see that the government continues to place a strong emphasis on digital learning, skilling, and education. With the policies and schemes that have been proposed in the Union Budget 2022, we are expecting more robust growth in the year ahead. The government’s planned interventions aimed at establishing centers of excellence, democratizing access to education, bridging the digital divide, promoting skilling, and upskilling, and facilitating quality content and world-class education is welcoming. At Wiley, we believe that education is the key to becoming truly self-reliant (Aatmanirbhar) and that it is critical to invest in education, skilling, and lifelong learning. Accordingly, we will continue our mission of enabling discovery, powering education, and shaping the workforce, thereby, helping to fuel India’s growth and development."
Awal Madaan, CEO and Founder, AwalEnglish.com
"In my opinion, the budget has addressed various pain-points of the education sector, which is a key sector in skilling the workforce and pushing up economic growth.
The decision of giving equal broadband access to both rural and urban areas has won my heart because it will help millions of students study and compete with the world. Moreover, it will save a substantial amount of travel time for the students, which gets wasted in getting the right education from institutes in the nearby cities and towns. My thumbs-up to the government's concrete plans to introduce 5G connectivity, as it will strengthen the digital infrastructure of the country, which in turn will support the education sector. This visionary government has taken another positive step by focusing on the emerging careers with its plans for boosting the industries like animation, audio-visual, artificial intelligence and gaming in the financial year 2022-23. On the whole, this year’s budget will certainly be a driver of growth and a game-changer for the education sector."
Maninder Singh Bajwa, CEO and Founder, iScuela
"Extremely happy to hear about the expansion of PM -eVidya Channels. While internet and smartphone penetration is increasing each passing year, there is still a large number of households that don’t have access. This is a big step towards increasing accessibility and making quality education accessible via TVs to every nook and corner of India. It was encouraging to hear the Government’s vision to improve the village digital infrastructure to bring it at par with cities. Affordable 5G rollout in 2022 will open doors to unlimited possibilities to bring high quality interactive learning experiences for everyone. Similarly, setting up a digital university will provide a model for digital schools. This will lay the foundation to implement the new education policy using all that the latest in technology provides."
Aman Mittal, Vice President, Lovely Professional University
This year’s budget recognises the student loss due to school and college closures and the importance of supplementary teaching for building an resilient mechanism enabling quality education delivery. There is a greater focus on regional languages and vocational courses for students to unleash their creativity and explore multi-faceted avenues. The new age initiatives to develop high-quality e-content in all spoken languages for radio, television, and digital channels in order to reach students in rural areas, is truly commendable. The revolutionary concept of a digital university, which will provide students with access to world-class quality education will be developed on a hub-and-spoke network. Additionally, to promote modern-day agriculture, states will be urged to alter agricultural university curricula to fit the needs of natural, low-cost, and organic farming techniques. The government's actions for the education industry in FY23 are well-considered in light of the current situation.
Diwakar Chittora, CEO and Founder, IntelliPaat
“We’re glad that the focus in this budget is on digital education. This budget rightly aims at reducing the digital divide. The ‘One Class One TV Channel’ program can prove to be fruitful for rural students. The establishment of the Digital DESH e-portal with a focus on skilling, reskilling, and upskil
ling was the need of the hour. Its added focus on helping students find relevant jobs and entrepreneurial opportunities is welcome.
Major Dinesh Sharma, Founder Academy of Pastry & Culinary Arts
“The government's vision of developing a skill based education system will get a new direction with this year’s budget announcement. What is interesting is the government's decision to develop digital infrastructure which is futuristic, especially due to students losing out on education during current pandemic crises. We need to be future ready.”
Vikas Verma, Co-founder & CEO, Goldsetu
“We welcome the government’s decision to cut import duty on diamonds and gemstones, disincentivize the import of imitation jewellery, and create a simplified regulatory framework for the export of jewellery. This will give a boost to the struggling jewellery sector. Also, the government's decision to launch digital currency and setting up digital banking units will accelerate the formalization of the economy and hopefully lower the transactional costs associated with digital transactions. Being a young startup focusing on the MSMEs space, we also welcome the various incentives provided to MSMEs and startups.”
Chandresh Sharma - CEO, Techpanion
"The budget laid impetus on the elimination of tedious documentation for the logistics and inventory sector, enabling digital transformation and automation along with an increased scope for improving international competitiveness. Along with being time and cost saving, now there would be more data transparency.
Startups have played a crucial role in empowering the nation. Acknowledging their efforts, there were tax benefits announced to boost the ecosystem. In today's budget the government has also emphasized on skilling and empowering the MSME’s for further formalizing the economy and enhancing entrepreneurial opportunities. For helping MSME’s become resilient, competitive and efficient, a 6000 cr program has been rolled out. Also Credit Guarantee Trust for Micro and Small Enterprises (CGTMSE) scheme will be revamped with required infusion of funds. Further increasing employment opportunities.``
Rajiv Kumar Aggarwal, Founder & CEO , StoreHippo
"The pandemic has been tough on businesses of every scale and size. We were expecting tax benefits and compliance relaxation for new and emerging businesses which has been taken care of in the budget. By extending the tax benefits for startups incorporated until March 2023, the Government has shown its inclination to foster the startup culture booming in India. This will have multi-pronged benefits and help the startups drive the growth of the Indian economy.
Also, with the emphasis on 5G penetration in the rural areas in 2022, the mobile commerce segment will get a boost as buyers in these remote areas will have access to affordable and fast mobile internet. We also welcome the Government's measures to simplify regulations for the export of jewellery through e-commerce. Such government initiatives facilitating the predominantly offline industries to come online will nurture the ecommerce ecosystem and help small and enterprise businesses grow to new markets."
Archit Gupta, Founder and CEO - Clear
Cryptocurrency - Government has brought in 30% tax on cryptos income, where no deduction for any expenses except cost of acquisition shall be allowed. Gift of virtual assets shall also be taxed for the recipient. This clears the air on taxes for cryptos, however, there are several types of incomes people earn from cryptos and hopefully more clarity will be available in the Budget documents.
ITR - If the time for revising ITR has passed or it has already been assessed, a taxpayer could no longer amend and pay addl taxes. (Earlier time period was end of AY). If the taxpayer wants to pay addl taxes and amend an already filed return, it can be done now, within 2 years from the end of the relevant assessment year. The intention is to allow taxpayers an opportunity to pay any unpaid taxes without severe consequences, in case they have made a mistake at the time of filing and return is already processed.
GST - “Union Budget 2022 saw a few key GST updates in the Central Goods and Services Tax (CGST) Act, especially surrounding the cancellation of GST registration and tighter input tax credit claims.
Return filing too has become more rigid with taxpayers disallowed from filing their returns if there are pending returns for previous tax periods.
The GST updates this Budget are an indication of tighter GST laws to come. Taxpayers cannot default in filing their returns or inaccurately claim input tax credit anymore. Even small discrepancies could result in huge penalties or GSTIN cancellations.”
Nandini Mansinghka, Co-Founder and CEO - Mumbai Angels
"The budget read more like an overview of the economy and its direction, with very few details. Most submissions for changes in the venture capital and private equity industries have not been addressed, with the promise of an executive committee to be set up for reviewing the rules. The one big announcement of course is the acceptance of digital assets as a reality with a 30% taxation."
Jayakumar Krishnaswamy, Managing Director, Nuvoco Vistas
"The Union Budget 2022-23 presented by the Finance Minister Nirmala Sitaraman provides a much-needed boost in the infrastructure segment. The slew of measures announced will provide the necessary thrust for an infrastructure-led economic revival. Announcements like - allocation of Rs 20,000 crores towards Gati Shakti Yojana, public investments for modern infrastructure, plans for the construction of 25,000 km of national highways, urban development and sustainable living, increased budgetary allocations of Rs 48,000 crores under the PM housing schemes, the introduction of Modern building by-laws will provide much-needed impetus for India’s building material industry."
Gaurav Dewan, Chief Operating Officer and Business Head, Travel Food Services
"I think the key highlights for TFS and our business in this year's union budget are the highway expansion of 25,000 kilometers, the emergency credit line guarantee scheme, and the ePassports roll out. These will definitely help the F&B sector in the longer term. The F&B sector has witnessed immense losses during the pandemic, and we had hoped that there would be much more coming from this budget around that. These are good fundamental big steps which will help in the longer term, but the expectation was for some key actions for immediate impetus to the sector."
Manish Aggarwal, Director, Bikano, Bikanervala Foods
"FM Nirmala Sitharaman’s Union Budget 2022-23 is a strong one that takes a future-ready strong pro-technology, pro-business and green energy stand and estimates India’s GDP to grow at about 9.2 per cent, the highest among all great economies. It leverages the nation’s sturdy present position, and aims to expand it at an extremely macro level. The Gati Shakti masterplan shows a constructive plan to remedy the nation’s need for a world-class infrastructure and the PLI Scheme to generate at least 60 lakh new jobs over a 5-year period is another welcome move, after the couple of challenging economic years. The ramp up of capital expenditure by 35.40 per cent to Rs. 7.50 lakh crore as well as the upgrade to the credit guarantee trust for micro and small enterprises with the necessary fund injection, adding approximately an additional Rs. 2 lakh crore in MSME’s bounty, are signs of the government loosening their purse strings for the needy sector."
Suyash Gupta, Director General, Indian Auto LPG Coalition
''With India remaining the best performing economy among the larger economies as duly highlighted by the budget, the budget has stayed the course in terms of remaining a growth-oriented one. In terms of promotion of cleaner mobility, while the government’s intent to encourage battery swapping technology with an eye on galvanizing electric mobility is appreciated, it still remains to be seen what more is there in the fine print for promotion of cleaner alternative fuels. At the same time, the provision for sovereign green bonds with the aim of reducing the carbon intensity of the economy must be appreciated. Also, the encouragement of agroforestry, the extension of PLI schemes to manufacturing of solar PV modules will further help in pursuing a more carbon-free economic pathway for the country. It must also be added that the increase of excise on unblended fuel will also help to some extent in achieving cleaner mobility. However the bigger picture with regard to air quality has been missed. Electric is a while away. What does the country do in the interim? Low hanging fruits like Auto LPG need to be acknowledged, which could bring an immediate relief to the urban air pollution."
Shruti Shah, CEO & Founder, Sacred Weaves
E-commerce has been witnessing an ascent as it steps onto the ladder forming an upward spiral of growth. Working round the clock to digitise itself and reaching out to a wider audience by the day, it is refashioning the conventionalities with a contemporary approach. This chart of success furthered the expectations from the budget year 2022 and the proposals addressed in the session.
Finance Minister, Nirmala Sitharaman ji, presented the anticipated budget and allocated GST requirements for all verticals including apparels and e-commerce. In her words, she said - “Goods and Services Tax (GST) was a remarkable reform in India's GDP. GST revenues are buoyant despite the pandemic, gross GST collection for the month of January is over Rs. 1.4 lakh crore. The highest since the inception of GST.” This further helped in updating the leaders in the industry and aiding them to stay informed as they plan their next quarter and year aiming for success.
The current budget is offering traction to a certain segment of e-commerce and motivating it to explore its highest potential to manifest its best work and endeavours this year. Bolstering the economy by strengthening the finances in the budget, the sector is aspiring to grow multi-fold. Facilitating the e-commerce industry to create its new highs and set new benchmarks, the budget and taxation in 2022 are only fuelling the fire to succeed and bring global reforms as they place India competitively across the international map.
Mohit Jain, Director, Kimirica Hunter international
E-commerce was expecting a relief in the GST taxes and although there are prospects for us to look forward to - it is going to be quite a journey. Considering the generic rise in GST in import/ export domain along with customs, there have been inflations and hiccups along the way.
In the words of the Finance Minister, Nirmala Sitharaman ji, who presented the budget for the year - “Goods and Services Tax (GST) was a remarkable reform in India's GDP. GST revenues are buoyant despite the pandemic, gross GST collection for the month of January is over Rs. 1.4 lakh crore. The highest since the inception of GST.” This further makes professionals and industry leaders give a second thought to their business nuances and carve a certain portion of their profit margins and meals apart for GST solely. Although this budget is resolving some of the concerns and presenting a ray of hope for the e-commerce sector as we look at incentives for startups, the giant fishes in the sea might have to strategise their path to growth once again.
The budget is also offering traction to a certain segment of e-commerce inspiring the brands in business to grow. Facilitating this domain with the help of e-commerce, it is intending to provide some relief to the leaders steering the economy to new highs. The budget represents the structure for the upcoming months and has its bittersweet corners for the e-commerce industry to adjust and grow multi-fold from.
Shibu Paul, Vice President – International Sales at Array Network
Honourable Finance Minister, Nirmala Sitharaman, presented the budget for 2022. The budget expectations for technology had soared in the past one year, making us hopeful of a digital revolution. Now that the numbers are in place, we can observe how a country's goal of high-paced yet consistent development is being complemented by an investment strategy laid out on paper. The budget supports macro as well as micro growth across the country including making significant strides in the field of technology. Understanding the need of the hour, India will now be digitising itself exponentially, which will serve to be a great initiative matching people’s expectations, indeed.
The technological reforms, as stated by the Finance Minister, will bear in mind the impact of the crises witnessed in the past two years and shall further intensify the attention paid to tech. The budget will contribute to creating a concrete digital economy as it invests in 5G auction, optical fiber connectivity, and digital currency supported by the Reserve Bank of India based on blockchain.
Leveraging Gati Shakti’s potential, a digital platform bringing development projects of 16 ministries, including railways and roadways through a multi-dimensional approach, the country shall integrate and elevate the bar of technology this fiscal year. Modernising industries with tech-enabled platforms and support to create better infrastructure amongst other initiatives such as incorporating digital advancements to boost National Tele Mental Health Programme and more, the budget will help in uplifting the success graph of India. Although 30% tax virtual digital assets including NFT (non-fungible token) might cause some hiccups but with e-passports consisting of embedded chips and digital currency using the highest potential of technology and supporting touchless culture, the leaders in the industry are certainly having a lot to look forward to.
Uttam kumar, Founder, Eggoz
Crypto currency as a technology is very promising. But we need to know that it is still evolving and it has to go a long way. Though, there are numerous benefits of blockchain and decentralisation and ignoring them will be limitising the technology potential, but keeping a blind eye on the risks and regulations can be far more dangerous.
As per Crypto bill for India is concern, I think taking time for evaluation of the benefits and risks is very much needed and I believe this is what our government is working on. So I believe delaying the crypto bill is a positive step to utilise the technology potential and regulating the risk associated with it.
Deepali Mathur, Founder and CEO, Elysian Hues
Finance Minister, Nirmala Sitharaman, took to the stage and announced the budget for the year 2022. The speech comprised of several segregation from tele industry to retail and customs, GST inclusions and expectations, IT development and growth of Urban India - however cryptocurrency was not a part of this session and did not make it to the list of proposed legislations. It did not come as a surprise due to being indicated subtly prior to the budget revelation. The government, while presenting the budget, clearly took a call on cryptocurrency and keeping at bay while it left its legal sanity undiscussed. The tax on the currency along with NFT (non -fungible token) was acknowledged and was set at 30%, as the Finance Minister said, "it cannot be mentioned as a replacement of any other income and 1% TDS to be charged further on payments made using digital assets to keep a track on transactions."
Bringing it under the tax umbrella is further anticipated to cause ripples amongst people, however, a direct stand and statement to resolve the validity and credibility of cryptocurrency across the nation. Introducing digital rupee is another step towards implementing taxes on digitised currencies however, crypto needs a little attention than tax allocation. Demanding a legal framework to be set in place, cryptocurrency still awaits a comment by the government, especially now more than ever since it has not been included in the propositions of financing.