Editorial Team

The Union Budget 2022 is getting mixed reactions. Here are some reactions from the industry leaders over Budget 2022!

Ravi Panchanadan – MD & CEO Manipal Global Education Services

The focus of the Union Budget 2022-23 was to strike a fine balance between fiscal prudence and growth support. The provisions related to higher education aligns with the NEP, underlining the need to create an autonomous NETF for the free exchange of ideas on technology and its use to enhance learning, planning, administration, and assessments.

The expectations from this year’s budget were to revive investments and boost the employability market. The reorientation of all skilling programs to align with the National Skill Qualification Framework (NSQF) and focus on new-age courses across infrastructure, finance and technology will help address current industry needs.

Building on the learnings from the pandemic, the revival of syllabi in agricultural universities and support for developing the agri-tech universities is welcome. There is also a focus on clean energy and solutions enabling positive climate actions.

The budget has called for a richer embrace of digital in our lives – 75 digital banking units across 75 districts, Digital Rupee and creating 60 lakh jobs in the next five years. This calls for proactive investments in developing industry-linked skill academies and closer integration between the industry & academia. We will also need to understand how academia will partner with Defence on R&D.

Focus on digital education development, training & infrastructure is vital, and therefore it is good to note the budget has addressed some of these in part. Initiatives to upskill teachers to develop quality e-content and investments in investments in digital assets, tools and techniques will boost success in this endeavour. The idea of a full-fledged Digital University with international quality education is an interesting initiative.

Special attention on digital connectivity. – thrust on implementing 5G technology and the optical fibre network will ensure seamless and widespread outreach to learners across rural and urban parts of India.

Balasundaram Athreya Business Head, Manipal MedAce & Sr. VP, Manipal Global Education Services

Overall, this year’s budget appears to be forward-looking, building on ongoing efforts to aid in implementing the National Education Policy. The vision of Budget 2022 for the Education sector’s modern outlook and approach will open opportunities towards reinvigorating digital empowerment and paving a roadmap for India’s advancement. It is reassuring to see that the Digital University’s ‘hub and spoke’ model intends to deliver classes in all regional languages; it is a commendable step towards strengthening digital infrastructure and training and is key to achieving real progress in the education sector.
We have come a long way to ensure equal access to education for all. However, given the pandemic, we risk losing this momentum and progress. We applaud measures proposed in this year’s budget, such as the Digital DESH e-portal, Centers of Excellence that would assist in Urban Sector Development, and skilling programmes and collaborations, hoping to strengthen our education system.

Raghav Gupta, Managing Director, India and APAC, Coursera

The Union budget 2022 has laid much needed focus on the education sector. From assuring funds for R&D, innovation, and growth, to emphasizing the need for digitization, the Government has taken a practical and contemporary view to benefit masses across the spectrum of elementary, secondary, and higher education. The pandemic affected learning at numerous levels – from academic exposure to the medium of instruction to evaluation of the core course content and construct in some cases, education institutions, academicians, online platforms, and other key stakeholders have worked together in the past 2 years to innovate and offer solutions on the back of technology to keep the learning going. Enhancing e-content quality, launching a portal for upskilling, instituting digital universities, and easing operations of foreign universities will not only enhance a student / learner’s exposure but will seamlessly integrate offline and online modes of education to enhance learning outcomes. We congratulate the Indian Government for presenting a progressive and promising budget that furthers the cause of digitization, governances and learning and growth for all. We are confident that the year 2022-23 will be a turning point in the history of Indian education as we move towards building an inclusive, digitally empowered and technologically advanced education system for all.

Milan Ganatra, Founder & CEO, 1SilverBullet

Firstly, I would like to express my appreciation and welcome the Budget presented by the government, which has been tremendously encouraging for India’s startup ecosystem. Bringing in the unlisted equity taxation at par to the listed, will encourage more Mergers and Acquisitions (M&A) in India, allowing a substantial quantity of wealth to flow into the pockets of founders and investors, bettering the appeal for investors to invest in unlisted equities or startups in the country. The administration is also proposing to form a committee to develop a framework for attracting more investments and monitoring regulations, which is a wonderful step forward from the eyes of the Fintech startup entrepreneur.

Finally, opening various things at the Indian Financial System Code (IFSC) will allow it to become a worldwide financial services centre, fueling a slew of Fintech-related operations. The government has been extremely pro-infrastructure, and they have granted industry data centres status, which is a great move with multiple benefits. Overall, the government has recognised the importance of technology, startups and has assured that there will be adequate and more entrepreneurial opportunities, which will be backed up by government assistance.

Sanjay Gupta, Vice President and India Managing Director, NXP Semiconductors

The Union Budget 2022 has recognized the digital growth of the country as a primary focus. In order to promote cleaner mobility, the battery swapping policy and interoperability standards that government plans to introduce, incorporates the concept of energy/battery as a service. This will also help in developing the charging station ecosystem which is imperative for massification of EVs. The announcement will give impetus to the private sector to develop sustainable and innovative business models for battery and energy as a service.The scheme for design led manufacturing to be launched for 5G ecosystem as part of PLI will be a boost to the overall telecom and electronic sectors. It will also provide and promote research and development of technology and solutions and will enable affordable broadband and mobile communication.

The plan to roll out E- passports with embedded chip and futuristic technology, digital rupee using blockchain by RBI, Drone Shakti and Kisaan Drones and opening Defence R&D for industry, startups and academia are welcome moves that will accelerate the growth and development of the semiconductor industry in the country. As the government continues to accentuate focus on Atmanirbhar Bharat and Digital India, we are hopeful that this year’s budget will propel India towards becoming a global electronic hub.

Yogesh Mudras, Managing Director, Informa Markets in India

This year, the Union Budget has been one of recovery and stabilization from the impact of COVID-19. The Budget has taken some initiatives for MSMEs and India Inc for start-ups. The extension of ECLGS scheme is a welcome move for MSMEs. The tax concession period has been extended by one more year, which in my opinion is a very positive move. A tax rate of 15% has been decided for the newly incorporated manufacturing unit which will further boost manufacturing activities. Healthcare and infrastructure were the main highlights of Budget 2022 and immense investment has been allocated for the expansion of roadways and logistics networks. Introduction of ‘Digital Rupee’ using blockchain technology sends a strong message that India is at the forefront of technology implementation. A digital currency issuance by the RBI will result in a structured approach with controlled regulation and bring in transparency to transactions enabling accounting of all money. The push on digitization will make way for more inclusion in the ecosystem. The focus on ‘Ease of doing business’ is a great step, as it will further promote entrepreneurship in the economy. India is to grow at 9.27%, the highest among all large economies. With a focus on contributing to the environment, chemical-free natural farming focusing on soil, biodiversity and human well-being is a welcome move. The budget is growth-oriented with an impetus on capital expenditure to fuel economic growth and employment generation. SEZ Act to be replaced with the new legislation is a much-needed announcement. Introduction of the battery swapping policy and recognizing battery and energy as a service will help to develop charging infrastructure and increase the use of EVs in public transportation. This would motivate businesses to incorporate EVs into their fleet and create new avenues for companies to venture into the business of battery swapping. The formation of a strong charging infrastructure alongside the highways across the country would promote the use of EVs for interstate travel. An additional allocation of Rs 19,500 crore to boost manufacturing of solar modules under the government’s flagship PLI scheme has the potential to create 60 lakh new jobs, while producing 30 lakh crore jobs during next five years. International travel has been severely impacted during the pandemic. We are pleased with the introduction of e-passports as it will provide a boost to the travel industry and add convenience. Extension of ECLGS scheme with an additional allocation for the hospitality sector is a positive move as it would help small and mid-size hotels overcome liquidity issues and pave way for growth.

Ravi Annavarapu, President, FMC India

We welcome this budget as it focuses on growth and inclusive development of farmers and rural communities by emphasizing on technological advancement, infrastructure and access to services for better productivity and cost-efficiency. The increased access to digital and high-tech services, use of kisan drones for crop assessment and increasing input use efficiency under the drone-shakti program, reduction of logistics costs via PM Gatti Shakti program will increase overall production and cost efficiency for farmers across the country. Further, provision for capital allocation towards aid for agri and rural start-ups, FPOs and Custom Machinery Hiring Centers for farmers will enhance access of small holder farmers to affordable mechanization. Enhanced focus on the production of oilseeds and promoting adoption of suitable varieties of fruits and vegetables will support farmers. However, we do feel the country needs more cohesive and impactful initiatives for crop diversification. The government should also consider rationalization of GST rate on pesticides in-line with other agricultural inputs to reduce the cost burden on the farmers. Additionally, there are opportunities to harness solar power for agriculture, which can reduce its CO2 footprint significantly, in-line with the sustainability goals set by the honorable PM at COP26. Incentivizing innovation by allowing income tax waiver on 200% of the R&D and extension investment by private companies would be positive for advancement of agriculture.

Vinay Thadani – Chief Financial Officer, Vishal Fabrics Ltd

The Budget highlighted India’s positive growth rate of 9.2%, which is the highest among other large economies. Capital expenditure was increased by 35.4% to 7.5 lakh crores as is a key driver to bringing sustainable economic revival and generating jobs for the youths. The budget provided additional allocation of Rs. 50000 crore under Emergency Credit Line Guarantee Scheme (ECLGS) which benefited more than 130 lakh MSMEs from the Emergency Credit Line Guarantee Scheme (ECLGS) and the Credit Guarantee Trust for Micro and Small Enterprises (CGTMSE) plan. Exemptions are being provided to encourage exports on items such as embellishment, trimming, fasteners, buttons, zipper, lining material, specified leather, furniture fittings, and packaging boxes that may be required by bona fide exporters of handicrafts, textiles and leather garments, leather footwear, and other goods. The production linked incentive (PLI) in 14 industries is expected to create 60 lakh jobs with the potential to produce 30 lakh crore in production over the next five years.

 Aman Mittal, Vice President, LPU
This year’s  budget recognizes 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
Harsh Bhuta, Partner at Bhuta Shah & Co LLP:-

The launch of the digital rupee, which is a digital form of Fiat currency backed by blockchain is encouraging, but we will have to wait for the Crypto Bill to see the Government’s stance on other private Cryptocurrencies. The Budget, on the other hand, has included a new plan for taxing virtual digital assets such as cryptocurrencies and NFTs. The proposed section 115BBH seeks to specify that where an assessee includes any income from the transfer of any virtual digital asset, the income tax shall be 30% after deducting the cost of the acquisition of such asset. No other deduction in respect of any expenditure or allowance or set-off of any loss shall be allowed while computing income from the transfer of such asset. Further, no set-off of any loss arising from the transfer of virtual digital assets shall be allowed against any income for the current year, and such loss shall not be allowed to be carried forward to subsequent assessment years.
Further, TDS u/s 194S is provided for at1% on payment for the transfer of virtual digital assets to a resident > Rs 50,000 with certain conditions.

Mr. Jitendra Suvagia, Partner at Bhuta Shah & Co LLP

Provisions to nudge the taxpayer for voluntary compliance. Under the existing provisions, a taxpayer is required to file income-tax return before the end of the subsequent financial year. Given the voluminous transactional data collected by the Government from different sources, the Government feels that the taxpayer may miss out reporting income from a few transactions due to limited time granted under the existing return filing provisions. In such a case, the Government has proposed to provide an extended time limit to file an updated income-tax return. The gist of newly proposed provisions is as under:

1. An updated return can be filed within 3 years from the end of the relevant financial year.

2. The opportunity is available to all taxpayers, irrespective, whether they have filed their return or not. However, the avenue is not available in following scenarios

2.1. To claim losses remaining to be claimed

2.2. Decrease tax liability, or increase the refund due, as per return already filed

2.3. Taxpayer is subjected to search, seizure or survey by the Taxman

2.4. Taxpayer has already filed an updated return once for a particular year

2.5. If the assessment or reassessment is pending or completed for the relevant year

2.6. The Taxman has information on the person’s income from specified sources and the same is communicated to the taxpayer prior to due date of filing updated return

2.7. Any prosecution proceedings are initiated against the taxpayer for the relevant year

3. Taxpayers are liable to pay tax and applicable interest before filing the updated income-tax return. Further, additional tax ranging from 25-50% of the aggregate tax and interest, depending upon the timing of filing the return, is required to be paid along with the updated return

4. Time limit for regular scrutiny assessment pursuant to filing updated return is 9 months from the end of the financial year in which the updated return is furnished

While the newly introduced provisions provide extended time to genuine taxpayers who have missed reporting any particular income, a high overall tax rate may weigh in for a taxpayer to decide on voluntary compliance.

Factoring the base tax, surcharge, education cess, interests and additional tax, the gross tax of additional income reported in updated tax return could exceed 50% of the reported income. Such high tax incidence may act as deterrence for taxpayers. With increased digitization of transactions, use of big data analytics to trace evaders, the taxpayer is bound to land in the long arm’s of the taxman, sooner than later. Thus, considering the high tax applicable on undisclosed income detected by the taxman, penalty and prosecution involved, the 50% tax rate seems to go with the Department’s slogan, “Pay tax Karo relax”.

However, additional tax could be a burden to genuine small taxpayers, who are stressed to catch up with high inflation. Hence, it is recommended to reduce the additional tax in case of small taxpayers, who miss out on nominal incomes such as bank interest. The Government could introduce threshold limits to address this.

Harshil Salot, Co-founder, The Sleep Company
The budget announced by the government today has been an incredibly encouraging one for India’s startup ecosystem and is an encouraging indication of the future roadmap of India’s digital transformation. As a made-in-India startup, the ECLGS 1 year extension is a great initiative that can aid SMEs to help sustain some semblance of normalcy and business momentum in these challenging times. Furthermore, the launch of the 5G spectrum can be a game-changer in increasing the speed of digital transformations across different spheres;  specifically for the D2C ecosystem that has y-o-y been making significant in-roads into India’s heartland, connecting more consumers to products and essentials that they otherwise would not have access to.
Tarusha Mittal- COO & Co-Founder, UniFarm

Digital currency seems to have finally caught the government’s attention. This signifies a good step and it is a welcome step towards the sentiments regarding cryptocurrencies as there are considerably fewer chances of a ‘ban’ or ‘prohibition’ of it, which is untenable anyway.

According to our Finance Minister, Income from the transfer of digital assets is to be charged 30% tax, plus 1% tax on the transaction. So, we now at least know what the retail users can expect this year. At the same time, the tax bracket is a bit concerning as it is on the higher end and individuals might have wanted lower LTCG taxes and carry forward of losses similar to equity or housing.

I believe the overall outcome will revolve around how the tax regime will be implemented. We would like to see the finer print to really understand the implications for asset classes- corporates and retail users.

But this is at least a start. The introduction of digital rupee using blockchain technology will further help in reducing financial and physical efforts required for money management and increase the awareness around the technology.

Rajesh Venkat, Co-Founder, Coin Wealth.

Excellent step forward on the Virtual Digital Assets front by the Indian Government

With the announcements on virtual digital assets, the Indian Finance Minister, Ms. Nirmala Sitharaman, has hit three birds with one stone.

  • India has been a leader in the technology efforts in the segment and these pronouncements further cement the path to making India a thriving economic ecosystem.
  • Two, we believe that clear tax guidelines are the first step to further policy in an asset class. The proposal to include clause 47A defining a Virtual Digital Asset is an affirmative step in that regard. Taxation will also provide vital info to the government about the transaction volumes and direction of flows to be able to make better decisions around future regulations.
  • Three, there is new-found legitimacy attached to crypto that will galvanize startups and new projects in this sector to choose India as the destination to operate from. The FinMin has taken commendable steps towards this goal.

We are deeply appreciative and thank India’s Finance Minister for today’s pronouncement.

Rakesh Goyal, Managing Director, Probus Insurance

The most important announcement in today’s Union Budget was that Finance Minister has announced that initial public offering (IPO) of the Life Insurance Corporation of India (LIC) will come out soon.
Apart from that, the FM also announced an open platform, for the National Digital Health Ecosystem will be rolled out. It will consist of digital registries of health providers and health facilities, unique health identity, consent framework, and universal access to health facilities. This move will create a strong digital framework for universal healthcare in India.

Government has also announced a ‘National Tele Mental Health Programme’, this will give access to quality mental health counselling and care services. The budget also widens progress for MSMEs and Agriculture sector. We are optimistic that collectively these steps will aid in improving insurance penetration in the country.

Vinaya Varma, MD, mjunction services limited

Providing a broad-spectrum booster shot to the economy, Budget 2022-23 is progressive – especially with its emphasis on building the country’s infrastructure. It clearly emphasised the top priorities of the government – PM Gati Shakti for sustainable growth, inclusive development, productivity enhancement, and financing of investments.

Following India’s Net Zero commitment articulated at the COP26 summit, this year’s Union Budget speech rightly focuses on the key themes of energy transition and climate action. The announcement of the setting up of four pilot projects for coal gasification and conversion of coal into chemicals highlights the country’s stance that there should be mindful utilisation of resources.

Energy transition requires major investments and the planned issuance of sovereign green bonds will help raise the required funds at competitive rates to support the massive green infrastructure initiative needed to progressively bring down our carbon footprint.

The Budget has made a strong push for infrastructure-led growth with capital outlay for infrastructure projects raised by 35% in FY2023. Investments centered around the Gati Shakti Master Plan in core sectors have the potential for spurring demand for metals. Cumulative allocation to flagship schemes like PMAY and Jal Jeevan Mission has been increased, which is a positive for long steel and pipe manufacturers.

Focus on self-reliance, especially in Defence and Solar Module manufacturing, remain positives for domestic steel demand. On the raw material side, the extension of customs duty waiver on ferrous scrap in FY2023 is a welcome development for secondary steel manufacturers. However, withdrawal of ADD/CVD protection on certain stainless steel, coated steel flat products, bars of alloy steel and high speed steel may impact the domestic industry.

Khadim Batti, CEO & Co-Founder, Whatfix

This year’s budget has reiterated how the start-up ecosystem has been one of the key drivers of growth for our economy. The extension of one more year of the current tax incentives and other measures comes as a relief for startups. India’s start-up ecosystem has been witnessing tremendous growth and attracting attention from Venture Capitals and Private Equity players. 2021 saw a record of $42 billion investment from global and domestic players. The most recent Economic survey states that India currently has over 61,400 startups recognised by the Department for Promotion of Industry and Internal Trade (DPIIT) and the previous financial year 2020-21 saw an increase with addition of at least 14,000 recognised startups. India also witnessed the doubling of the unicorn club to 83 start-ups with 42 new ones.

With the focus on the start-up ecosystem, the budget has also called for an expert committee to examine and suggest appropriate measures in scaling up the investments from the VC/PE community. Such a move will streamline the investments in start-ups and provide greater benefits to employees. The start-up ecosystem is also getting capital gains exemption and extension in the eligibility for claiming tax holiday by one more year to 31 March 2023. Employees who join start-ups at the various stages of growth can avail more equity and less cash in terms of salary compensation. This will help the Indian start-up base continue to witness steady growth and a more promising talent pool.

A report published by CBInsights indicates that there are plenty of opportunities for industries in the technology services, fintech, mobile services, IT, and other sectors to achieve unicorn status. With this year’s budget measures, tax incentives and the continue unicorn wave in India, entrepreneurs are striving not to be the best in India, but to be the best in the world.

Suman Reddy, Managing Director and Country Head, Pegasystems India

The Union Budget for 2022 laid the foundation for a growth-supportive plan as the nation commences its exit from a pandemic-induced slump. India’s growth is highest among all major economies, and we are in a strong position to withstand challenges. With a keen focus on health, education and startups, we are truly on our way to encouraging further digital adoption, particularly in semi-urban and rural markets. I am delighted with the focus of Budget 2022 on digital and technology. It is a forward-looking blueprint of India’s resilience, capabilities, and determination. The Indian tech startup space continues to witness steady growth, accounting for 70 unicorns with most of them in the IT/knowledge-based sectors. The provisions outlined in this year’s Budget will provide them a game-changing economic transformation opportunity. Additionally, the framework outlined for citizens to skill, reskill or upskill through online training will open up a sophisticated pipeline of jobs and entrepreneurial opportunities. The introduction of central bank digital currency will boost the digital economy and will hugely benefit the Fintech ecosystem. With setting up of 75 digital banking units India is set to become a robust digital economy in the next two years.

The ongoing race to deploy 5G will be crucial in addressing and streamlining the avalanche of data and the multitudes of IoT connections that will power the smart cities, utilities, education, healthcare, transportation, and enterprise needs of today and tomorrow. We are truly on our way to building an open, digital and inclusive India within the next 25 years.”

Anshuman Rai, Area Vice President, India, and South Asia, Commvault

The Budget 2022 is a futuristic step taken by the government to complement nation’s macro-growth encompassing digital economy, tech-enabled development, and inclusive sustainable actions.

The announcement of data centres being awarded an infrastructure status is truly commendable as this move will be a major thrust to data localization. The new status will enable the data centre sector to get credit at competitive rates and on a long-term basis with enhanced limits. This move will also be a catalyst in realizing India’s vision of attaining the position of a global data centre hub.

The establishment of an open national digital health ecosystem, inclusive core financial approach, and digital currency will be instrumental in bridging the digital gap and bolster the Digital India vision further. With an increased focus on digital ecosystem for skilling, through API-based skill credentials and digital universities, we will see a talent surge that is equipped for the jobs of the future. The initiatives for telecom services and modernization for agri sector through land record digitization will be critical in modernizing and broadening the scope of data generation, management, and protection.

All these measures will, ultimately, result in a massive amount of data generation which will drive the demand for a robust and unified data management and protection technology further.”

Sudhindra Holla, Director, Axis Communications, India and SAARC

With the goal to complement macro-growth with micro-all-inclusive welfare and tech-enabled development, we are optimistic that these measures will further strengthen India’s power as a global digital hub. With technology serving as the pivot in this year’s budget, there will be a renewed focus on the criticality of a robust cybersecurity solution.

The seven engines of the PM Gati Shakti masterplan encompassing the launch of 400 new-generation Vande Bharat trains and the national highway network will be key drivers in the demand for top notch surveillance solutions. We are upbeat on the slew of recommendations for urban infrastructure development as this will be an impetus for not only generating employment but also reinvigorate the development of smart cities. The rollout of 5G services will further the potential of technology and aid in promoting R&D and commercialization of tech and solutions.

The launch of the National Ropeways Development Programme will be a major thrust to the tourism sector and the vision towards developing a self-reliant defence sector will additionally boost the demand of hi-tech surveillance and security solutions.

Sushant Gupta, Founder & CEO of SG Analytics

The Union budget 2022 is certainly growth-oriented & futuristic as it covers different facets of technology and embraces digital adoption widely.Whether it is the introduction of a New Digital Rupee or Central Bank Digital Currency (CBDC), legitimizing private cryptocurrencies & NFT (with 30% tax imposition on virtual assets), Digital Universities, or Digitization of Post Offices, the list is ambitious and futuristic. The thrust and focus on digital technology are certainly welcomed and appreciated.
Also, very timely and heartening is the focus on inclusive development, energy transition, and climate action as three of the four pillars of development. I wholeheartedly welcome the decision regarding the provision of green jobs and the acknowledgment of new-age entrepreneurship and its drivers.

Richa Singh, CEO & Co-founder, YourDOST

YourDOST is thrilled to witness the keen and continued interest of the government in addressing mental health issues. The announcement of the setting up of a National Tele Mental Health Program by the Finance Minister is in the right direction and will offer a strong support system for the mental wellness issues that people of all ages in the country are going through. This will play a significant role in removing the stigma attached to the topic of mental wellness in the country.

Additionally, the rolling out of an open platform for the National Digital Health Ecosystem will also assist in connecting the relevant health providers and health facilities through the digital registry, thereby, making required health assistance more accessible.

Anshuman Panwar, Co-Founder, Creditas Solutions

Union Budget 2022-23 has laid focus on promoting fintech and technology-based developments which will play a major role in boosting the digital economy. The introduction of 75 digital banking systems in 75 districts by scheduled commercial banks will empower the population digitally in a consumer-friendly manner, supporting inter-operability and financial inclusion. This will enable many consumers to experience digital banking for the first time at their convenience. When customers are empowered by digital experiences specific to their needs, the repayment process also becomes seamless and pain-free.

Unsoo Kim, MD, Hyundai Motors India Ltd.

Hyundai Motor India welcomes the progressive Union Budget announced today. Government’s strong approach towards accelerating infrastructure development, sustainability along with digitalisation in every-sphere of business will give strong impetus to overall economy while empowering consumerism in India. The vision for clean mobility creating electric vehicle ecosystem is a positive indicator for auto Industry and for its large supply chain. The forward-looking budget will lay modular economic structure for every section of business and society in India.

Aanand Srinivas, Founder & CEO, StayQrious

We welcome the Finance Minister making announcement for all the major sectors to pave the path of economic recovery and growth. The recommendations to promote digitization in education sector shows a futuristic approach towards teaching and learning to make world-class quality education available for all the students. Adapting to a hybrid approach as we recover from the pandemic and ensuring that students are adequately supported is the need of the hour. It will widen opportunities to fill knowledge gaps and supplement essential skills needed for the 21st century. With the pandemic having increased the adoption of digital education, one can scale the model to many more children than before.

Shishir Dixit, MD, Centurion Education Pvt. Ltd.

The education sector, which is the cornerstone of progressive economies, expects structural reforms in every budget session. Undoubtedly, the government is working on improving digital learning, but there is a pressing need to strengthen the connectivity issues of the rural and underprivileged areas first. The government’s commitment to provide supplementary teaching and establish a resilience mechanism for imparting education is commendable, however, this is a long-term process. Furthermore, considering the prevailing crisis caused by the global pandemic, there is an urgent need to exempt students from the existing 18 percent GST rate thereby easing the route to private education. Moreover, establishing a Digital University is a time-consuming process, thus, the government could have provided a reduction in internet charges to boost connectivity as an immediate response. Additionally, more efforts could have been put into action to provide relaxation to students preparing for competitive exams thereby reducing the unemployment graph of the country.

Rajesh Khosla, President and CEO, AGI glaspac

The Indian government this year has presented a growth-oriented budget with a special focus on boosting manufacturing sector to create massive employment opportunities and to maintain India’s status as world’s fastest-growing economy. The concessional corporate tax for newly incorporated manufacturing companies is a positive move towards promoting the Make in India initiative as this will encourage new manufacturing industries as well as increase private investment in this industry. The PLI Scheme(Production Linked Incentive scheme) in 14 sectors with the aim of creating 6 million jobs can be predicted to improve the performance of the manufacturing industries in the country by 4X in the next four quarters. We congratulate FM, Nirmala Sitharaman for presenting a budget that has laid a roadmap for the economic revival of India – despite the pandemic crisis.

Dharmesh Kapasi, President, Shanti Educational Initiatives Limited (SEIL)

The Union finance minister presented a growth-oriented budget for the upcoming financial year. We are happy to see that the budget focused on encouraging digital education in the COVID-era, especially for rural India, which is the worst hit in the past two years. In fact, “digital” was the theme for all education initiatives in the speech, both for school and higher education. The expansion of the “One Class One TV Channel” programme under PMeVIDYA initiative from the existing 12 educational channels to 200 channels across India will provide significantly easier access to world-class quality education to the students.

The government’s plan to set up a digital university and focus on collaborations with the best institutions in the country is a great initiative. In line with our expectations, the thrust has been given on providing a platform to the digital teachers for developing competent content for imparting education virtually. Considering the impact of the pandemic on students and the education sector, it is an important decision to develop high-quality e-content that can be delivered through various modes and equip teachers so that they can use digital tools.

Kavitha Subramanian, Co-Founder, Upstox

The Hon’ble Finance Minister has presented a digital-first Budget that focuses on quick, holistic, and inclusive economic growth. The focus on start-ups and fintech in this year’s Budget is a fantastic step that will help these sectors grow further.

The introduction of 5G and the spread of optical fiber to villages would provide a boost to the Fintech industry. It encourages digital investment platforms like ours to expand their services, resulting in an increase in retail activity in Tier 2-Tier 3 cities and towns. The Central Bank Digital Money (CBDC) will help to enhance the digital economy by making currency management more efficient and less expensive. The capping of surcharge at 15% on Long-Term Capital Gains (LTCG) tax for all listed and unlisted corporations responds to a long-standing demand for new-age businesses.

Abhinav Sinha, Co-founder Eko

As part of the latest budget announcements, MSMEs like Udyam, e-shram, NCS & Aseem portals will be inter-linked, and their scope will be widened. These MSMEs will now work as portals with live organic databases, providing G-C, B-C & B-B services like credit facilitation and enhancing entrepreneurial opportunities. Another beneficial initiative from the budget is the extension of the Emergency Credit Line Guarantee Scheme to March 2023 with a guarantee cover that will be expanded by INR 50K Crore to a total cover of INR 50,000 Crore. This scheme has already helped 130 lakh MSMEs mitigate the worst impact of the pandemic. The announcement of rolling out 6,000 crore rupees programme to rate MSMEs over the next 5 years shall help the sector become more resilient, efficient and competitive.

Another welcome move is the launch of India’s own blockchain-based digital currency by the RBI. Digital currency will lead to more efficient and cheaper currency management proposed to introduce digital rupee, using blockchain and other technologies to be issued by the Reserve Bank of India starting 2022-23.

Kulmeet Bawa, President and Managing Director, SAP Indian Subcontinent

The budget announcement deserves applause as it takes a stance to address the two biggest needs of the hour: inclusive digital development and climate action. This monumental decision will help drive the country towards a self-reliant future, by prioritizing positive economic growth and an optimistic outlook towards sustainability. Overall, India is setting itself up for a digital first approach by focusing on the much needed digital push that results in holistic job creation, skilling and overall improvement of the population’s livelihood as the nation recovers from the impact of the pandemic.

Shivansh Bhasin, Founder and CEO, The Investrology

I feel, taxing crypto is a big step forward. Surely in the short term, investors would take a hit but long term it is a step in the right direction and in alignment with the western economies (USA) informally recognising digital assets and currencies. This definitely is a step forward towards digitalisation of economies accepting technology and its benefits in the widespread aspects for businesses. IT stocks like TCS & INFY with particular interest in digital assets would see significant opportunity in adoption of digital assets.

Rajiv Tandon, CEO-Executive Education, BITS Pilani WILP

Digital Desh e-portal for skilling, upskilling and reskilling the youth is a powerful idea, however I feel chances of its success can be greatly enhanced by adopting best practices on offering e-learning programmes and content from both Desh and Videsh. For the Digital Desh e-portal, the concerned Gov stakeholders must consult with top tier Indian and international universities and corporations that already have a rich and long experience with offering programmes over e-learning platforms. Be it curriculum, pedagogy or content the Digital Desh e-portal must incorporate the best practices from all over the world to make its intended impact.

Cyrus Katgara, Managing Partner, Jeena & Co.

Budget 2022 is a progressive budget and will benefit everyone. The Budget aims to boost growth amid continued disruption from Covid-19 and rising inflation. It will especially empower the poor and those from backward sections of the society. This budget addresses the immediate need of more investment, more infrastructures and more growth. The gross GST collections for the month of January 2022 are Rs 1,40,986 crore, considered the highest since the inception of the Goods and Services Tax in July 2017. This indicates good progressive growth. India Inc is expected to grow at 9.27 per cent in the coming year. Biggest focus of the Budget was on infrastructure spending. India will also bring out battery swapping policy and the Private sector will be encouraged to create sustainable and innovative business models for battery and energy as a service, improving the efficiency in the EV ecosystem. The Budget has also incorporated a new provision to allow taxpayers to file an updated return. This Updated return can be filed within 2 years from the end of the relevant assessment year to correct any mistakes or errors. This is a major step towards voluntary compliance. This new provision will ensure voluntary tax filing and reduce litigation. The Budget has not increased tax rates. The Budget also sees the debut of India’s Digital currency. Overall this Budget is in line with the government’s policy of social justice and equality.

Dhruv Agarwala, Group CEO, Housing.com, Makaan.com and Proptiger.com

In a Budget that aspired to boost private consumption and create jobs to improve the economy in the backdrop of the third wave of the coronavirus pandemic, a variety of measures have been announced by Hon’ble FM Smt. Nirmala Sitharaman that would go a long way in meeting the twin targets.The provision of Rs. 48000 crore under Prime Minister Awas Yojana for completion of 80 lakh houses will help the government in achieving its target of Housing For All.The government’s proposal to cut down the approval time related to land and construction will bring ease of doing business.The real estate sector will also be benefitted from announcements related to industrial & logistics and data centers, enabling them to aggressively diversify into these two upcoming asset classes in the overall real estate sector.A lot of emphasis has also been given on better land record management.Steps such as tax exemption to start-ups extended to March 2023 will go a long way in invigorating the entrepreneurial spirit in the country.However, the industry did expect some tweaks in tax slab, a move that would have resulted in greater savings for people, which would have consequently boosted consumption, especially in the real estate sector. The Budget has also been largely mute on any direct support for the housing sector.

Manoj Gaur, CMD, Gaurs Group and Vice-President, North, CREDAI National

The Union Budget 2022-23 was balanced and focused on the overall nation’s economy and not just extending benefits to particular sectors. We believe that when all industries stay on the path of recovery and growth, sustenance gains strong ground and all industries get boosted equally. The focus on affordable housing and housing for all looked very strong in today’s budget. Allocation of 48,000 crore for PMAY will go a long way in helping people satisfy their basic need of owning a home. Another important aspect which was the day’s highlight and we really appreciate as a developer who develops not just group housing but also townships, is the push on infrastructure and urban planning. With a committee being formed for urban capacity building and planning, I am sure India’s real estate development will no longer be confined to a few big metros only. Our long standing demand of industry status for the real estate sector remains unaddressed this year and we hope authorities look into it in the coming years.

Pradeep Aggarwal, founder and chairman of Signature Global Group and chairman, Assocham – National Council on Real Estate, Housing and Urban Development

The Government has always focused on affordable housing, and in this Budget, the announcement was made regarding the allocation of Rs 48, 000 crore for PM Awas Yojana, and completing 80 lakh houses in 2022-23. It was a balanced Budget that took care of the overall economic development, including improving multi-model transportation in cities and increasing the highways by 25000 km. The improvement in transportation will generate employment in cities, leading to a growth in demand for housing. The affordable segment will also benefit from the announcement of reduction of time for land and construction related approvals in urban areas which was earlier a matter of concern for the industry. The Government has also talked about tier II and III cities and that it will work with urban planners to ensure that these cities witness economic growth and employment. The Government will also work with Financial Sector regulators to expand access to capital along with reduction in cost of intermediaries; this will help the sector have access to funds to finish projects on time. Through this, a common man can complete his dream to have a home.

Amarjit Bakshi, CMD Central Park

We anticipated a budget that is both people and business-friendly; the current Budget made it clear that economic growth is the prime focus as the Economic Survey projected a GDP growth of 8-8.5 per cent in the next fiscal. The emphasis on improving transport infrastructure, including highways, will go a long way in creating sustainable pockets of real estate development. Though there was no announcement related to the sector, we are hopeful that job creation and the announcement of Ease of Doing Business 2.0 will lead to increased demand.

Uddhav Poddar, MD, Bhumika Group

This year’s budget focus was more on boosting the overall infrastructure, urban planning etc. not just in metros but also to Tier II-III cities. The measure of setting up a high-level committee for urban planners and economists to be formed for recommendations on urban capacity building, planning implementation, and governance is a giant leap to introduce modern urban planning structures. Overall, the Union Budget 2022-23 had a mixed bag of announcements for the real estate sector, much was expected on the terms of single window clearance, industry status and tax incentives which did not come through.

Nayan Raheja, Raheja Developers

The real estate sector’s long-standing demand has not been addressed in Budget 22-23. We’ve been requesting industry status for the entire sector as well as single-window clearance to ensure smooth operations, but the government has yet to respond. Overall, Hon’ble FM’s budget announcements appear to be a mixed bag from a real estate standpoint. While the anticipated expansion of smaller cities and infrastructural improvements can be considered as favorable developments for the sector

Amit Modi, Director ABA Corp, President Elect, CREDAI Western UP

The sector had hoped for some tangible announcements like industry status and GST input tax credits for developers in this year’s Budget, but these did not happen. At the same time, we welcome Rs 48, 000 crore as allocation for PM Awas Yojana and identification of nearly 80 lakh households for the affordable housing scheme in 2022-23. We also look forward to recommendations of the government formed high-level committee for urban planners and economists to be formed for urban capacity building, planning implementation, and governance.Following a challenging year, it was critical to allocate resources to job creation and the strengthening of employment-creating industries, which the government has attempted to do, but real estate sector being one of the largest employers in the country had hoped for more fiscal and policy support to not only bounce back from the pandemic induced slowdown, but also be a sizeable contributor to governments 60 lakh job creation target and $5 trillion economy scale

Abhishek Bansal, Executive Director, Pacific Group

We congratulate the FM for coming up with a Budget with a focus on overall economic health; the announcement will lead to better-earning opportunities for people directly impacting the retail sector. We can see the retail and commercial segment moving to more Indian cities as infrastructure will improve after various announcements in the Budget. Though there was not much in terms of tax savings for people, overall economic growth will lead to increased income that will support retail consumption.

Ankit Kansal Founder and MD, 360 Realtors

Despite very high hopes, the budget so far has been a little disappointing for the Indian Real Estate industry. There has been a slew of sector-specific policies for industries such as chemicals & fertilizers, gems & stones, steel, defense, animation, electronic appliances, etc. Meanwhile, nothing very concrete has been announced about real estate. However, there have been a couple of positive outcomes. Firstly GOIs commitment to further develop urban infrastructure in a robust but sustainable fashion is a welcome step. Secondly, GOI has rationalized custom duties for a host of steel products including steel scarp for secondary steel producers. Lowering steel prices might be helpful in optimizing input costs. Another icing on the cake has been the Indian economic comeback. The Honorable Finance Minister during the budget session suggested the GST collection of over 140,000 Crores during JAN 2022, the highest after the implementation of the GST regime. The spike in GST collection resonates with a healthy economic outlook, which will drive demand for real estate. Meanwhile, the government has also extended one more year for availing tax benefits for newly incorporated manufacturing units. This might help drive demand for industrial lands, warehouses, and commercial assets.

Prateek Mittal, Executive Director, IIT Alumni at Sushma Group

Indirectly, the real estate sector will benefit from focusing on infrastructure, innovation, and job growth. The Government also talked about urban development, where it will nurture the megacities as centres of economic growth and focus on tier II-III cities to develop a sustainable growth environment. We foresee an influx of financial Institutions will focus and invest in tier II – III cities which will ease the liquidity and boost the sector, providing people with varied housing options; the players already working in these areas will benefit from the first-mover advantage and their working experience in these regions.

Sanjay Sharma, Director,SKA Group

As expected, Affordable Housing was once again the focus as the Government is moving towards ‘Housing for all’ by announcing the completion of 80 lakh houses under PMAY and allocation of Rs 48,000 crore under the PM Housing scheme. The Central Government will work with state govt for reduction of time for land and construction related approvals promoting affordable housing for middle class and economically weaker section in urban areas. We are sure that the work on the segment will speed up, and people will realize the dream of owning a home.

Vikas Garg, DMD, MRG World

We are happy that the focus of the Government is on providing affordable housing; the announcement to come up with 80 lakh houses under PMAY for urban and rural areas calls for a concerted effort of Government and the developers. The focus on improving transport will definitely help develop affordable houses, which is a precondition of the buyers. The Government has also said that it will work with the financial sector to reduce the cost of intermediaries, which will further streamline the process and control the cost.

Aman Sharma, Director Spaze Group

One step to encourage people to buy homes is to improve the economy, and Budget 22-23 had everything required to kick start a healthy economic growth. Improved transportation and expansion of highways will lead to the demand for more commercial real estate. Support to startups and MSMEs will create an environment that will require more office spaces, even in Tier II-II cities.

LC Mittal, Director, Motia Group

Improvement in transport infrastructure and highways will go a long way in making people move to smaller cities; the announcement regarding developing a sustainable growth environment for these cities will further lead to a uniform economic development creating real estate demand. We welcome the Budget as it works towards overall growth of the economy and reaches the target of 8-8.5 per cent GDP growth as predicted in the Economic Survey.

Akshay Taneja – MD, TDI Infratech

We are delighted that the Government has talked about strengthening tier II and III cities; we are sure that this will encompass job generation and business development in these cities leading to the increased demand for quality housing. There was no particular incentive for the real estate sector, but the probability of increased demand in smaller cities points towards a healthy growth for realty.

Rajeev Singh, MD, BenQ India

The budget paves way for a digital savvy India, impacting betterment and quality of life and ease of doing business. We are glad that the Government of India, is cognizant and working towards boosting the digital infrastructure and economy. The emphasis on e-infrastructure in education is laudable. Fostering creativity with virtual labs and skilling e-labs for simulated learning environment will uplift education standards. Expansion of PM’s one class, one TV channel program – eVIDYA from 12 to 200 TV channels, Digital University and the initiative of laying optical fiber by 2025 under Bharat Net will uplift broadband connectivity in rural areas, enabling all states to provide supplementary education in regional languages for K-12 classes. This will further increase the demand for advanced hybrid displays which in turn will give a boost to the virtual classroom and Blended & Hybrid Learning. Further, reduced alternate minimum tax rates, surcharges, concessional tax, and new tax schemes for newly incorporated manufacturing entities will uplift the ‘Gati’ of domestic manufacturing and fasten up economic growth. We look forward to a digital-first India in every front.

Gaurav Chadha, EY Business Tax Partner

Given that start-ups have emerged as drivers for growth, to give further push to the sector, time limit for incorporation for eligible start-up for claiming income-tax holiday incentive has been extended by one more year to March 31, 2023.

Reorientation of skilling framework, by introduction of Digital DESH e-portal for skilling, upskilling & reskilling of youth, ‘One Class One TV Channel’ programme of 200 TV channels for providing supplementary education in regional languages for class 1-12 and digital university to provide access to students with world-class quality education with ISTE Standards will go a long way in bridging the urban and rural divide.

Siddhartha Gupta, CEO, Mercer Mettl

Aligning Skill programs with Industry is very positive news. Covid has taken the wind out of the Skilling initiatives of GOI over the last 2 years and there was a need to promote continuous skilling avenues, sustainability, and employability. Another welcome move is to re-look the national skill qualification framework (NSQF). This will further improve the Skill levels of youth and their ability to get jobs. We are proud of our partnership with GOI on Digital Literacy. Budget speaks about empowering citizens to skill, reskill or upskill through online training. It will also provide API-based trusted skill credentials, payment, and discovery to find relevant jobs and entrepreneurial opportunities. We have been working on Digital Credentials and would love to expand this to Skill credentials through Digital means as well and bridge the gap between Education and Industry. The launch of Digital University recognizes the role Tech would play in keeping education disruption less in the future. An announcement in this direction augurs well for the Ed Tech startups which have recognized this gap and are trying to innovate and transform the segment.

Vishwakumara Kayargadde, Co-Founder and COO, Saankhya Labs

5G in India is soon going to be a reality, as one of the major highlights in the Union Budget was the government’s assurance to conduct the required spectrum auction in 2022. This will help facilitate the rollout of 5G mobile services within 2022-23. We welcome the Finance Ministry’s intent to launch a design-led manufacturing scheme that will help build a strong ecosystem for 5G in the country. In addition to this, the government’s measures towards promoting a semiconductor manufacturing ecosystem will attract young talent, and make the industry more efficient and competitive. This will further boost fabless companies such as ours and other MSMEs working in the deep tech space, helping them engage in product R&D and design. Another laudable move by the government is to promote R&D and commercialization of technologies and solutions by enabling affordable broadband and mobile service proliferation in rural and remote areas.

Himanshu Mody, Founder and CEO, Tekno Point

Startups are increasingly positioned as key enablers of job creation, technical innovation, and economic growth in India. With over 61,000 startups in India currently, we anticipate more potential and innovative firms from young entrepreneurs around the country. Tax reforms for startups will assist aspiring entrepreneurs in managing the fundraising and financial aspects more efficiently in order to strategically attract investors and join the unicorn club. Similarly, the government’s emphasis on Digital University and skilling is intriguing because it provides equal possibilities for students and working professionals of all levels and industries to brush up on their abilities and stay relevant in their field. These reforms also significantly contribute to the ease of doing business and the ease of living by introducing structural discipline into the core of corporate operations.

Ondrej Kubik, CEO, Home Credit India

The Union Budget is progressive with an expansionary approach, touching upon all sectors both traditional and sunrise, giving a pragmatic push to financial inclusion, made-in India, digital and green economy to strengthen the economic growth stimulus achieved in pandemic years. The finance minister has hit the bullseye by laying the foundation for growth-oriented investment with the announcement of 35% rise in government’s capital expenditure for FY 23, which will surely have a multiplier effect on the economy. Complementing the rising allocation towards infrastructure boost, supporting MSME fund scheme extension and increased PLIs for building domestic industries, the budget lays much-needed emphasis on sunrise sectors. Support for digital economy expansion, financial inclusion, skilling & upskilling through digital learning and fillip to be a driver of clean energy & mobility, shows the government’s affirmative action and foresighted outlook to keep the economic growth engines on accelerated path.

Sarbojit mallick, Founder and CBO, Instahyre

The Production-Linked Incentive (PLI) scheme across 14 sectors, including IT hardware manufacturing, has the potential to generate at least 60 lakh new job opportunities in covering key sectors like pharmaceuticals, medical devices, large-scale electronics manufacturing, food products, solar EV modules, automobiles/auto components, ACC battery, textile products, etc. More emphasis on technologies like deeptech, agritech, EV tech, defence & digital payments will help tech startups. The “Digital Rupee” is a book boost to the blockchain. The Indian startups will be at the forefront and global fintech firms will also be targeting Indian talent on this. More funds have been allocated to the power and manufacturing segments. We will also see that the hiring will be boosted with the increase in technology adoption in the above sectors. The Digital university on the hub and spoke model to provide skill-based education will smoothen the overall recruitment process.”

Vikram Singh, CEO & Founder, TechEagle

We are happy to see, finally with Budget 2022, Govt. shows focus around Drones for masses in agriculture, healthcare and logistics applications with the announcement of following things in Budget 2022 by FM :
Kisan Drones: It will promote use of Drones for crop assessment, digitization of land records, spraying of insecticides, and nutrients. Kisan Drones, in my opinion, should involve improving healthcare access in rural and remote India with the help of drone-based medical item delivery, as well as delivering agricultural products from farm to warehouse for better pricing and transportation. This will aid in the mainstream adoption of drone technology.
Drone Shakti: Start-ups will be promoted to facilitate ‘Drone Shakti’ through varied applications like Healthcare Drone Delivery, Air Taxis, Drone based on-demand delivery of parcels, Agriculture, Survey, Mapping etc. Drone-as-a-Service (DAAS) is a business concept that is comparable to the commonly used term Software as a Service (SaaS) (Saas). Drone-as-a-service eliminates the need for government departments to purchase items and instead rents them out as a service, allowing them to become asset light and take advantage of the greatest available capability and technology on the market. As technology advances on a daily basis, government departments’ assets are becoming increasingly cluttered with old technology. As a result, it’s a win-win situation for both the government and drone start-ups. For instance, TechEagle is constructing a unique On-Demand Drone logistics Airline and selling it on a Drone-as-a-Service basis to Government organisations and business companies for altering healthcare and logistics to save and improve a billion lives.
Overall, a solid budget in TechEagle’s opinion, as it addressed all elements in a positive light.”

Vipul Agarwal, Co-founder, unlu

It’s great to see that the budget allocates significant funds to education and places a strong emphasis on empowering teachers through digitization. The government is concentrating on digitization to expand education penetration and access across the country, as seen by the extension of PM E-Vidya to 200 channels and the construction of a digital university. To make up for the education shortfall during the last two years, the Finance Minister has proposed new TV channels for extra teaching (PM eVidya). This is little in comparison to the huge learning loss that our children have experienced. Both the One-Class-One channel through PM eVidya for supplementary education in regional languages and fibre optic connectivity for last-mile digital reach in communities are important for rural development.

 Varun Mohan CEO, Definite

India’s economy is to grow at 9.2%. which is a huge thing and will show growth in all the sectors. Investment in infra would be guided by Gati Shakti, a remarkable government initiative that will accelerate the infra sector growth of the Indian economy. Inclusion of Data Centres in the list of Infrastructure, will give immense confidence and boost to people looking to participate in the new upcoming asset class, this action is a very welcome step of the government and the speed with which they have taken into consideration the experts to include Data Centre in infrastructure is commendable. This will facilitate the digital infrastructure in the country and boosts confidence in the PM’s vision of Digital India. The confidence the government has shown towards the Infra sector will encourage others to invest in the sector.

Shivjeet Ghatge, CEO, StepSetGo

The Union Budget 2022 presented by our Honourable Finance Minister, Mrs. Nirmala Sitharaman, has projected an encouraging mega push to the start-up economy in India. In fact, some of the transformative policies such as the 100% tax rebate on the profit made for a period of three years can help us conducively tackle our working capital requirements and grow steadily. This will also largely expedite the start-up revolution in the country.

The focus on 5g connectivity as a part of the ‘Digital India’ initiative will pose as a game changer to players like us and enable us to contribute more significantly to the economy while leading India to a healthier way of living. Moreover, it will help us change the face of fitness in the country and will allow us to make fitness more inclusive and infrastructure-agnostic. It will provide us the opportunity to mitigate any tech related inadequacies caused due to data speed and help us augment our product offerings by aiding comprehensive R&D in smaller pockets of the country.

Additionally, we believe that the Union budget has taken into consideration the plight of the entrepreneur and is focussed on both relief and recovery. The extension of the tax incentives till 2023 and the impetus to digitalization will give us the financial freedom to focus on innovation and scale up operations. We are glad that the government is extremely enthusiastic about fuelling the aspirations of young entrepreneurial India as we believe that we have it in us to become the start-up superpower of the world.

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.

Arundhati Bhattacharya, Chairperson & CEO, Salesforce India

Overall, this is a budget with a long-term vision supported by growth oriented policies driving job creation, digital inclusion, climate action and infrastructure development and therefore, is very timely for our country. As we continue to digitally transform, the focus on bolstering digital payments with a consumer-friendly lens, will continue to augment digital adoption across regional India. As a knowledge economy, I cannot emphasise enough on the importance of skilling to lead the digital disruption. Initiatives to drive skilling, reskilling and upskilling, digitally, will ensure we are ready for the digital future much ahead of the curve. Lastly, climate change is the most pressing global crisis that humanity is facing today impacting every individual, institution, government, community, and business. Investments in energy transition and climate action will take us on our path to sustainable development.

Anshuman Das, CEO & Co-founder, Longhouse Consulting

“Budget 2022 has created a plethora of new opportunities for startups looking to conduct business in India as they have emerged as an economic growth driver. To facilitate Drone Shakti through various applications was a significant push for drone startups. The allocation of 25% of India’s defense R&D budget to private industry, startups, and academia was significant and very encouraging. It is applaudable that Union Budget 2022 laid an emphasis on NABARD who will support a fund to finance agricultural and rural enterprise startups relevant to the farm produce value chain wherein these startups will assist FPOs and supply farmers with technology. Furthermore, extending the eligibility for claiming a tax holiday for startups and the capital gains exemption for investment in startups by one year until March 31, 2022, in order to incentivize funding was undoubtedly welcome news for the burgeoning startup ecosystem.

Sudhindra Holla, Director, Axis Communications, India & SAARC.

With the goal to complement macro-growth with micro-all-inclusive welfare and tech-enabled development, we are optimistic that these measures will further strengthen India’s power as a global digital hub. With technology serving as the pivot in this year’s budget, there will be a renewed focus on the criticality of a robust cybersecurity solution.

The seven engines of the PM Gati Shakti masterplan encompassing the launch of 400 new-generation Vande Bharat trains and the national highway network will be key drivers in the demand for top notch surveillance solutions. We are upbeat on the slew of recommendations for urban infrastructure development as this will be an impetus for not only generating employment but also reinvigorate the development of smart cities. The rollout of 5G services will further the potential of technology and aid in promoting R&D and commercialization of tech and solutions.

The launch of the National Ropeways Development Programme will be a major thrust to the tourism sector and the vision towards developing a self-reliant defence sector will additionally boost the demand of hi-tech surveillance and security solutions.

Padmaja Ruparel, Co-founder, Indian Angel Network & Founding Partner, IAN Fund

IAN is glad that our demand for an expert committee to look at regulatory frameworks for the VC industry is addressed in the Union Budget 2022. This budget opens up huge opportunity for start-ups across Defence, Agriculture, Drone, Fintech and mobility sectors. The focus on digitization across sectors will lead the way towards innovation for start-ups. Introduction of digital rupee using blockchain and other technology will further boost opportunities for start-ups in India. We appreciate the FM’s empathy, in light of covid, by extending the period by a year for startups to avail tax incentives.

Ashish Agarwal, Director & CEO, SEROS Logistics

We at Seros Logistics welcome and support govt mission towards a sustainable future. Government commitment towards Capex hike of 35.4% and a focus on smart expenditure has ensured the acceleration of what the economy has received will continue.

As announced in the interim budget 2022, India has emerged as the fastest highway developer in the entire world. The Gati Shakti master plan for expansion of highways/expressways by 25,000 kms in FY23 will go a long way for the logistic sector which will not only boom transport but will also strengthen connectivity between Urban and Rural sectors. Introduction of 100 Cargo Terminals under PM Gati Shakti will boost supply chain for local products and enable efficient logistics for small farmers & enterprises. Focus on green logistics by supporting the EV Market and addressing energy transition and climate action & financing of investments in this space is a brilliant step

Tanmay Kumar, Chief Financial Officer, Shiprocket

We appreciate Government’s empathy towards the start-ups by extending the period by a year for start-ups to avail tax incentives around the tough times of Covid. The announcement of ‘One station, one product’ under the PM Gati Shakti plan will help the supply chain of local products. The budget has focused on the development of infra projects which will boost the logistics system in India and will help us to become enablers of effective logistic system. The Government has emphasized on digitisation of payments and it’s a good news for small businesses and entrepreneurs who wants to start their business.

Kartik Shah, CEO, Coldrush Logistics

The vision of the Indian Government around the “Gati Shakti” plan to expand roads and highways give an impetus to the road transport sector. Highway infrastructure is crucial for the benefit of roadways as they help in time as well as fuel savings and are a path to the prosperity of the nation. The focus on logistics parks that are announced will also surely be a path breaker to build a more integrated logistics system within the country while optimizing overall costs.

Kapil Makhija, CEO, Unicommerce

The budget’s elaborate focus on building digital economy and technology-enabled development is extremely encouraging. As mentioned during the budget that start-ups have emerged as growth drivers for our economy showcases the immense potential of India’s startup ecosystem. Its evident that the government’s push on 5G, connectivity and logistics will help the ecommerce industry to develop and grow further. Technology will be a key enabler here leading to improve logistics and ensure faster deliveries. We are excited to see this growth journey and are extremely optimistic about the future. Brands and companies’ increased focus on Tier 2 and Tier 3 cities will prove to be the real game changer. We look forward to continue to partner with the ecosystem players and simplify ecommerce selling with our technology solutions that will support the nation’s growth objectives, generate employment and strengthen India’s digital economy.

Iesh Dixit, Founder & CEO, Powerplay

Union Budget 2022 is progressive – especially with its emphasis on Digitization across India which will benefit the startup ecosystem in the longer run. The FM clearly emphasized the top priorities of the government – PM Gati Shakti for sustainable growth, inclusive development, productivity enhancement, and financing of investments which will not only boost the construction ecosystem but also create a lot of jobs in the construction sector

Anil Nagar, CEO and Founder, Adda247

After a tumultuous two years in the education sector the government is increasing support through the Union Budget 2022. We welcome the path breaking initiatives of government to revive the education sector:
1. Building digital university will overcome the barriers in class room teaching especially during pandemic and provide universal learning to students across the country.
2. “One Class One TV Channel” scheme will act as a supplementary medium for education in rural areas. This will surely help to cover the loss learning due to covid in last two years.

Mohammad Azhar, Lead Government & Public Sector Initiatives, Villgro

“The tax incentives and effective redressal of issues like payment of Tax even after the country lockdown are one of the more debatable concerns for 2-3 years old startups. The startups differ from traditional businesses and they are focused on innovation, technology, and exponential scaling/sustainability. Therefore, their tax issues are also slightly different from other businesses. Proposal of tax holidays from 3 years to 4 years is a welcoming step from going good to great in bringing sustainability in the startup ecosystem.

Amit Nigam, COO & Executive Director, BANKIT

FinTech industry is an ever-growing sector of the society. As per one of the ideologies of budget 2022 “Aatma Nirbhar Bharat Ka Budget”, the FinTech industry also strives to make everyone self-reliant. According to the budget 2022-2023, India’s growth is expected to grow by 9.27% including high-yielding opportunities for start-ups. As digital payments have grown at rapid pace, the benefits of digital banking should reach every nook and corner. So, 75 digital banking units will be set up in 75 districts by scheduled commercial banks that will be like icing on the cake. Focus on the usage of Digital Payment Apps will also be enhanced from our end. All the 1.5 lakh post offices in India will be connected to the core banking system that will enable people to access their accounts online and transfer money within post office accounts and to other banks also. As tax incentives for start-ups to be incorporated until March 31, 2023, Union Budget sounds favorable for FinTech start-ups. Next phase of “Ease of Doing Business, Ease of Living” is also ready to be launched. Hence, we are looking forward to making the best use of new technological and advantageous opportunities designated by the Union Budget 2022-2023.

Yagnesh Sanghrajka, Founder and CFO,100X.VC

Well, I think it’s a great budget in terms of the infra & the capital goods push so every startup that is probably serving these industries will get a leg up. The extension of the one-year period for new startups is a welcome move. The taxation of digital assets was anyway expected. A lot of positive announcements for Health-tech, Ed-tech, and EV startups; The whole digital push will benefit startups overall. It was a good budget by the FM

Dr. Angeli Misra (MD Path), Founder & Director, Lifeline Laboratory

The diagnostics industry has been ignored in the new budget. There is a deep sense of disappointment at no significant allocation of additional funds to boost India’s healthcare infrastructure. The diagnostic equipment manufacturing industry continues to bear a heavy tax burden, as there is no reduction in customs and excise duty and tax exemptions on imports for an industry that is heavily dependent on imports (86%). The launch of an open platform for a National Digital Health Ecosystem, a focus on building domestic capacities by encouraging public-private partnership, and the promotion of R&D to provide universal access to health facilities for all, is however, a welcome move.

Mahalakshmi Satish, Director, Prodigy Education India

What stands out to us is the boost to digital infrastructure across the nation through PPP mode – optic fibre networks, 5G spectrum and other services which can be a game changer in the level of internet penetration across tier 3 cities and towns – giving edtech the necessary boost in access and affordability. Also, with PPP, chances are that the private component of the partnerships can help speed up the completion rate of these projects.

Varun Mahna, Founder and CEO Dangal Games

We feel that in the latest budget, the startup ecosystem has been given a great boost along with acknowledging the employment potential that creative domains such as animation, visual effects, gaming, and comic (AVGC) sector hold for the youth. We are eagerly awaiting now for the recommendations that the AVGC promotion task force will be setting-up .We have always been great supporters for India’s Atma Nirbhar vision, and are committed towards enhancing our technological capabilities for serving the domestic and international demands.

Vikas Bhasin, MD, SAYA

The Union Budget 2022-23 is progressive, providing a broad-spectrum boost to the economy, particularly with its emphasis on improving the country’s infrastructure. The government has increased the Capex target by 35.4 percent, from INR 5.54 lakh crore to INR 7.50 lakh crore, potentially boosting overall spending for economic growth. The budget also emphasises the importance of appropriate urban planning, while simultaneously providing some assistance to states and keeping the budgetary deficit in check. Another significant plus is that the government’s goal of creating 6 million new jobs over the next five years will allow residential real estate to expand across the country. In a post-covid era, it’s a good budget since it hasn’t altered the tax system, leaving individual discretionary incomes unaffected and the government has continued on its stated path to job creation. However, a few pressing issues in the real estate sector remain unaddressed such as granting the sector industrial status and tax breaks on home loans to enhance buyer confidence.

Akshat Jain, CTO & Co-founder, Cyware

Tax incentives and relaxation for startups were one of the most awaited announcements. The extension of one more year of the current tax incentives comes as a welcome respite for startups. It is important to understand how the ecosystem has been one of the key drivers of GDP and will continue to have an immense impact this year as well. Emerging economy companies raised a record $42 billion in global and domestic financing in 2021 and with the addition of 42 new companies to the unicorn club, there are 83 currently doubling the count.

Yesterday’s economic survey highlighted the remarkable growth of startups in India during the past six years, especially in the IT/knowledge-based sectors. With the tax incentives being extended, it will enable Indian startups to recover from the effects of the challenges of the ongoing Covid-19 Pandemic. The budget has emphasized accelerating and bringing back growth to overcome challenges faced in the past two years.

With the increased focus on digital infrastructure and digital economy, the need for secure cyberinfrastructure will become all the more important. The time to focus extensively on cybersecurity and the support needed for companies building ‘Collective Cyber Defense’ technologies is now. Considering the record number of cyberattacks and ransomware threats that India faced last year, wish the government expands and extends its focus on strengthening the cyber security infrastructure and empower companies that have been making continued strides in building these solutions.

Shiv Sharma, VP International, Stocktwits

The plan to introduce digital rupee using blockchain and other technologies is exciting. This will be a key industry milestone and impact the Indian fintech landscape. We are looking forward to seeing how digital currency applications can support existing retail investors and provide easy access to those who are not currently participating in financial markets,

Dayapatra Nevatia, COO and President, Infogain

As expected, thanks to digital tech’s incredible support in helping India Inc. brave the pandemic, this year’s budget takes a ‘digital first’ stance. A significant focus on new initiatives and progressive policy interventions, such as opening defence R&D, promoting drone start-ups, digital university, giving datacentres infra status will propel further adoption of technology across industries.

The budget highlights the Governments’ focus on digital inclusion, quite evident with the introduction of the Digital Rupee. This progressive move will give a big boost to India’s digital economy. This also reaffirms our vision and approach to leverage emerging technologies like blockchain to build future-ready solutions with our team at Nggawe Nirman Technologies (recent acquisition).

I believe digital literacy will be the key to realizing India’s 5 trillion-dollar economy dream. To create a digital ecosystem for skilling and focus on digital inclusion through 5G and investment in technologies such as Artificial Intelligence and infrastructure, the government will continue strengthening the development of entrepreneurship, productivity, and quality of IT talent in the country, thereby scaling the adoption of new-age technologies across industries.

James Forbes-May, VP Sales APAC, Barracuda Networks

“The budget rolled out this year is a significant step towards the right direction. It outlays a strong focus on almost all sectors, especially focusing on digitization and tech-driven areas. As India is well poised to play an important role in Cybersecurity and Data Protection, the push towards complementing macro-growth with micro-all-inclusive welfare, digital economy and fintech, tech-enabled development, energy transition and climate action would play a crucial role. The Government’s proposal to launch a Digital ecosystem for skilling and livelihood and Desh stack e-portal will encourage growth in the sector, apart from promoting the digital infra. Taking insights from the new budget, we are looking forward to the next phase of Tech-Savvy India, which will be a big growth driver for Cybersecurity businesses and customers alike.”

SK Chaudhary, Founder Director, Safex Chemicals

This year’s budget is highly built on the foundation of new visions and technologies. A renewed focus on agriculture and infrastructure would mean accelerated economic development, which cannot be accomplished without digital disruptions. The initiative to promote chemical-free natural farming throughout the country will help in strengthening the agriculture industry. Considering the financial aspects of things, 2022-2023 would prove to be a highly crucial period for the agriculture industry. Farm procurement value for FY23 would be Rs 2.37 lakh crore. This would help agrochemical companies like us focus more on building reliability and march towards higher growth.

With rapid channelisation of the Agrotech sector and encouragement of domestic production of oilseeds, it is an opportune time to enhance our spending in training our youths with essential skill sets related to agriculture and the use of chemicals and pesticides to catch hold of the opportunity. The government’s plan to align Rs 2.37 lakh crore towards procuring wheat and paddy under MSP operations is a huge relief to the farmers and agro players. Moreover, the year 2022-23 has been announced as the International Year of Millets. The rationalised scheme to increase domestic oilseed production to cut down imports will foster the growth of the agrochemical industry. The key areas where we expected reform were ensuring predictability, consistency, and rationalization of levies and taxes. The announcement of Ken Betwa river linking project worth Rs 44,605 crore alongwith Kisan Drones for crop assessment, land records, spraying of insecticides will drive a wave of technology in the agri sector. All these new measures and policies make this budget wholesome, which would further help us promote innovation and investments in the industry to achieve a better productivity vision.

Rajat Gandhi, Founder & CEO, Faircent.com

The Union Budget 2022-2023 tabled a multitude of policies such as setting up 75 digital banking units in 75 districts to encourage public investment and boost digital financial inclusion in India. With the Government announcing RBI’s roadmap to launch the Central Bank Digital Currency, we expect the digital lending landscape to get further impetus. This will lead to a growth in collaborations and partnerships between banks and fintechs to address the plaguing gap of organized credit in the system. These initiatives will open up the lending space in India and provide a shot in the arm to Fintechs, particularly Pro and NeoBanks.

Sumit Jha, founder, Fantasy Akhada

This year’s budget seems holistic and promising with an extension of forward-looking government schemes. It is encouraging to see the special mention of the AVGC segment this year. We also applaud FM’s proposal for The AICTE’s responsibility to curate syllabi for urban planning courses which will further support the youth and strengthen the AVGC ecosystem in India. It is a great move to tap the industry’s booming demand globally. Also, the initiative to set up an AVGC specific task force will help bolster our domestic capacity, helping us to meet the burgeoning market demands on a national and an international level.We are very optimistic about the focus on innovation and we firmly believe that the AVGC Task Force will seek recommendations on the way forward.

The growth of digital adoption and the role of new age technologies in accelerating AVGC in Digital India will give importance to greater drive on digital skills and better practices to give rise to highly innovative gaming platforms. This sector will also be booming for the people who are taking gaming & tech as a career opportunity.

Karan Khairajani, Head of Studio, CrazyLabs India

We welcome the announcements by the Hon’ble FM pertaining to the AVGC sector, as it will help in boosting the already growing Gaming sector. It is an opportune moment for us to see that the Government has recognized the importance of setting up an Animation, Visual Effects, Gamic and Comics (AVGC) taskforce. This would assist us in building the domestic capacity to serve the Indian market as well as meet the global demands. We also applaud FM’s proposal for All India Council for Technical Education (AICTE), India’s regulatory body for technical education, to be responsible for shaping up the syllabi for Urban Planning courses. Having said that, given the growth of digital adoption and the role of new-age technologies in accelerating AVGC in Digital India, both businesses and the public particularly in Tier II and Tier III cities would value greater impetus on digital skilling and improved processes, in a bid to give rise to highly innovative gaming platforms. As the country gears up to rise from the global pandemic and chart the next chapter, CrazyLabs will continue to work in tandem with the government to help bolster India’s entrepreneurial and AVGC ecosystem, by providing all the help and tools needed to succeed online. We are very optimistic with the focus given on innovation and we strongly believe that the AVGC task force would seek recommendations to create the way forward. Also, CrazyHubs will remain a strong and reliable Hyper-casual gaming partner with tailor-made creative gaming activities to fulfil international market demands.

Alok Bansal, Visionet Systems India’s MD and Global Head,  BFSI Business

Digital transformation is the way forward and the news that digital rupee using blockchain and other technologies will be issued by RBI starting 2022-23, is something that will have lasting impact as far as the BFSI industry is concerned. I also find the idea of 75 digital banks in 75 districts to be interesting because as an industry, we have been asking for a policy boost that would increase inclusive banking. It would be also exciting to watch how post offices that will be linked now with a core banking solution will help push financial inclusion. Data exchange among all-mode operators that will now be brought under the umbrella of a unified logistics interface, will hopefully serve industries and consumers well. As an industry leader, I have been vocal about the need to upskill the youth and so the launch of a Skilling & Livelihood e-portal is something I have great expectations from.

Jesal Doshi, Deputy CEO, B Medical Systems

With India in the midst of a third wave of the pandemic, healthcare, including digital healthcare, and mental health has been a focus in Budget 2022-23. The Finance Minister Nirmala Sitharaman launchedan open platform for the National Digital Health Ecosystem, which includes digital registries of health providers and facilitates a unique health identity, a consent framework, and universal access to health services. The Finance Minister also stated that 95% of the 112 aspirational districts had made substantial progress in key sectors such as health, nutrition, infrastructure etc. and that efforts would now be focused on areas that were underperforming. We are hopeful that the Government impetus will improve India’s ability to access world-class medical cold chain products while also improving India’s export competitiveness in this industry.

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.

Arjun Khazanchi, CLO and Co-Founder, Rooba Finance

The 2022 budget presented by the Hon’ble Finance Minister is one that is inclusive and well thought-out. With Consumer Price Inflation currently under 5 % which is modest and manageable, the Government has opened spending through zero-interest loans to States and expanded infrastructure funding by stating their intention to build 24,000 Km of roads. The Government has also been conscious of the needs of the Agri sector and provided adequate relief. Thereby covering core sectors along with sunrise sectors. One of the biggest changes which will positively impact the Indian economy in the years to come is the taxation of virtual and digital assets. By taxing the transfer of virtual assets at 30% the Government has set the ball rolling for the formalization of the sector and bringing it out of the fringe. By keeping the tax at 30% the Government has addressed fears of a 40% taxation which would effectively penalize the industry, prima facie. The Government given the economic survey noting that there was a 67% increase in revenue from tax collection is clearly not starved for income through taxation.

Also, taxing virtual assets by virtue of ‘transfer’ which is defined u/s 2(47) of the Income Tax Act, 1961 is broad and inclusive. ‘Transfer’ is used in the context of the transfer of ‘capital asset’ under the lens of Income Tax. Transfer under the Act includes any form of sale, exchange, or relinquishment of an Asset. Whereas Capital assets are defined under the Income Tax Act u/s 2(14). Therefore, it is reasonable to assume that this taxation brings about a form of temporary classifications of Virtual assets as an asset class under the Income Tax Act. This would bring a wave of Institutional Money which was waiting for regulatory clarity. It will open banks to participate as partners with exchanges and businesses and open India to a web3 future. Players like Rooba finance which has been building specifically to cater to the needs of these institutions for the last couple of years are extremely excited by the announcements of the Hon’ble Finance Minister. Our product would address all the security, cost, regulatory and practical concerns such institutions may have while entering into this space. We believe that the best of the Web3 space and India is yet to come. The inclusion of taxation on gifting such assets is also future-looking and makes holding the asset less stressful. This is because a gift in the future and its taxation shows the legislative intent to allow for such a transaction in the years to come and bring it under the tax net.

The regulation of virtual and digital assets has finally started in India, and this is just a first step. The voices from the industry have been heard and the space has been given the requisite room to grow that it needs while the government is not left as a bystander. The rollout of the Central Bank Digital Currency by the Reserve Bank of India is a great step moving forward. Though significant issues such as security, custody of keys, and access start to come into the forefront of the discussion. However, India has firmly taken a seat in the front to lead the charge towards financial innovation, ease of doing business, and regulatory certainty with regards to the Web3 space. The Government also seems to have taken note of the popular tax-loss harvesting strategy employed by investors to avoid paying or reducing actual taxable amounts. This seems to be one of the reasons to not allow setting off losses. However, this may be quite complicated because it will complicate some business models and the inability to offset a loss in a period of bear markets may have practical issues which can be solved with consultations and more clarity as it comes out.

Founder & CEO, Tushar Aggarwal, StashFin

The Finance Minister has announced support for digital payment and banking in the Union Budget 2022-2023, which will be welcomed by the sector. The measures include introducing a Digital Rupee that is to be issued by the RBI, prioritizing digital economy and fintech industries. We, at Stashfin, are grateful to the Government of India for this decision of extending support towards neo-banking start-ups.

The government is taking steps to ensure that digital services reach even remote areas in the country. India’s digital payment and banking industry has shown stellar growth, and Stashfin along with the government would like to bridge the gap between financial institutions and users across the country.

Building awareness of digital payments and promoting financial literacy is critical to India achieving the vision of a $1-trillion digital economy. We look forward to strengthening the payment ecosystem and go along with the government vision for financial inclusion via digitalization.

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.

George Sam, Business Head & Co-Founder, Mindgate Solutions Pvt. Ltd

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 realized.

Furthermore, the introduction of Digital Rupee is a landmark decision. We expect this will potentially be more disruptive like UPI. While it will enable efficient currency management as an immediate benefit, it will also accelerate the target of a digital and financially inclusive India.

Subodh Garg, CFO and Growth leader Pickrr

Union Budget 2022, with its strong impetus to technology and startups, is future-driven. The Gati Shakti scheme proposed by the Finance Minister in today’s budget will play a crucial role in shaping the logistics sector in the coming years. This scheme will provide a boost to the overall infrastructure landscape in India and will subsequently foster the advancement of the logistic segment. The announcement of the expansion of the highway network by 25000KMS and the development of 100 new cargo terminals will increase the connectivity and will help in the swift movement of goods across the country.

We believe that the Gati Shakti scheme will propel the economy by leading to more jobs and opportunities for the youth.

With technology playing a crucial role in shaping the country’s startups, it was great to see that the Union Budget 2022 introduced various start-up-friendly policies, tax relaxations to enable innovation and ease-of-doing-business and reduce compliance costs.

Miten Kakaiya, Fitness coach & Founder, Miten Says Fitness

A great initiative has been taken during this Union Budget to digitize every possible industry. I am really delighted with the introduced the ‘National Tele Mental Health Programme’. Health is the top priority at the moment, and rolling out of ‘National Digital Health Ecosystem’ will be a great help to quickly access to health facilities.

Also for Startups, exemption from taxes from three years has now been extended for one more year which is a helpful step for entrepreneurs during such a critical time of the pandemic, as the fitness industry no doubt demanded benefits for gyms and respective startup.

Shayak Mazumder, CEO & Co-Founder, Eunimart

The MSME industry has been at the forefront when it comes to facing issues and struggling to meet business needs as the pandemic hit. Over the last two years of the Union Budget, enough emphasis has been laid on schemes aimed at empowering these small and medium businesses. This year’s budget focuses on extending the ECGLS scheme, which is a big boon for the sector. We can anticipate growth and see these businesses have a fair chance at recovering, growing, and achieving. One can say that the Union Budget 2022 is pro-MSME.

K R Sekar, President-BCIC and Partner, Deloitte Touche Tohmatsu India LLP

The Union budget certainly looked growth-oriented from the perspective of a recovering post-pandemic economy. We are happy to announce that recommendations made by BCIC have been considered by the Finance Minister and have been brought into the Union Budget 2022. The proposals suggested that for India to grow, the increased focus and higher allocation for R&D, a cap on surcharge at 15% on capital gains, and deferment of litigation in the high court and supreme court in case of taxpayers having favourable orders. The fiscal deficit has also been maintained at 6.9% due to GST & direct tax collection. There has been no increase in the tax rates, the liquidation for corporates is now becoming easy. Taxing digital assets is a strong move by the government. However, taxing at 30% is not appropriate and it is recommended the taxation rate on digital assets should be pegged at normal corporate tax rate or capital gains tax rate particularly due to non-availability of any deductions other than the cost of acquisition of the asset. Also, a major initiative to digitize and interlink all government and finance ministries’ payments will enable transparency and help to create better administration.

Arjun Ranga, Managing Director, Cycle Pure Agarbathi

The Make in India initiative to create 6mn jobs will boost our economy and strengthen India’s Atma Nirbhar Bharat dream. The focus on ease of living will boost Naya Bharat and enable more businesses to flourish. The move to repeal union laws to make it easier for businesses will uplift the employment scenario of the nation. As we are already in the jobs creation space, it will be a notable moment to witness industries coming together to create 60 lakh new jobs. The move to create a Special Economic Zones Act to enable states to become partners in ‘Development of Enterprise and Service Hubs’ will enhance the competitiveness of exports. New businesses and brands should now take climate change seriously and align their brand’s vision to minimise the effect on the environment. It is our responsibility to take India towards a more sustainable development path.

Allan Andersen, Director, Chaman Bhartiya School

The pandemic has highlighted the fact that digital can be an efficient resource for delivery of quality education. Hence in this scenario, it was expected that the government would have initiated a specific action plan to bridge the digital divide not only between the urban and rural, but also between the high-income and low-income population of India. The Finance Minister today in her Union Budget 2022 speech acknowledged the serious impact of the pandemic on crores of children, who have lost almost two years of formal schooling. The government recognized the need to build supplementary teaching resources and expand the PM e-vidya scheme from the existing 12 educational television channels to 200. This would allow all States to provide extensive content in regional languages. We are also ecstatic to see the Government’s focus on creating enriching e-content & content delivery platforms clubbed with better offline pedagogical methods by training teachers in order to create a holistic learning ecosystem. Also, the expansion of “One Class One TV Channel” will help in tackling continued learning even in a pandemic. We at Chaman Bhartiya School look forward to the positive impact this will make.

Pavan Ranga, Director, Rangsons LLP

The Union Budget 2022 looks promising for private industry in the Defence Sector. The move to allow private firms to take part in the R&D will encourage more players to take part in the growth of the nation’s defence sector. This will shorten the buying cycle of manufacturing products from foreign countries and make India capable of producing world class products in the defence and aerospace segment. The allocation of 25% of defence R&D budget will push more startups and academia to set incubation centres and accelerate new solutions in India that will be aligned to promoting Atma Nirbhar Bharat dream.

Sunil Bist – CEO, NetConnect Global

We see enormous potential in the next digital transformation era, fuelled by fields such as 5G-enabled internet of vehicles, internet of things, and industrial internet, and in India, we will see upcoming growth opportunities for a range of small and medium-sized enterprises, which can explore the innovative 5G applications in various industries.

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