The Union Budget 2022 is getting mixed reactions. Here are some reactions from the industry leaders over Budget 2022!
Akshay Chaturvedi, Founder & CEO, Leverage Edu
I believe the 2022 budget is focused around smart digital expenditures in not just education, but across sectors! A very forward-looking budget in my opinion that will enable startups take lead in India’s next phase of development. Introduction of the e-passport facility will decrease friction in the immigration process and I look forward to Indians getting access to such world-class tech. Lastly, steps like capping off long-term capital gains at 15% clearly position this as a document which heard and implemented feedback from all quarters, and that’s amazing!
Vidya Narayanan, Co-Founder & CEO, Rizzle
We welcome the well-balanced budget, which attempts to focus on all the sectors, to accelerate economic recovery. While acknowledging the start-up sector as a growth driver of India’s economy, the finance minister has reaffirmed the Government’s support for the sector by extending the eligibility for claiming tax holidays by another year. Similarly, it has extended the capital gains exemption for investment in start-ups by one more year. This will help boost funding. On the whole, this year’s budget is pro-growth, with an emphasis on digitalization and ease of doing business.
Vikas Bhasin, MD, SAYA Homes
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.
Aashka Goradia Goble, Co-founder, RENEE Cosmetics
The Budget has granted the most popular wish of startups for extension of tax holiday. Now the Hon’ble FM has extended the startup tax holiday scheme to startups incorporated till March 31, 2023. This was also important as the last 2 years have been challenging for those who had just stepped into entrepreneurship and are struggling to keep their startup alive. Additionally, the surcharge on long-term capital gains (LTCG) tax has been capped at 15%. This will reduce the burden on startups in terms of ESOPs and other transactions too.
Apurv Agrawal, Co-Founder, Avni- Traditional Menstrual Care Brand
The pandemic has unravelled a lot of loopholes in the Indian healthcare system. Certainly, health was to stay a priority in the budget. The Budget announced the launch of an open platform for the National Digital Health Ecosystem. This will provide easy access to the available health facilities and health providers. The absence of the right information had created a ruckus during the first and second waves of covid. We are glad that the government took note of the same and has now resolved the challenge too.
Gurpreet Singh, Co-Founder & CRO, Awign
Our Honourable Finance Minister, Nirmala Sitharaman, has pushed the engine of digitization forward with a focus on addressing the frothing issue of Employment and Skill Development through this budget presentation.
With the digital ecosystem expanding into more sectors, the government is focusing on skilling, reskilling, and upskilling Indian citizens through online training, which will be the source of their livelihood. This initiative will undoubtedly have a positive impact on the gig economy, as digital integration will aid in further crossing the borders between urban and rural geographies.
These efforts to formalise growth into an opportunity are progressing, thanks to its ongoing support in the form of increased budget allocation for skill development and job creation. We at Awign believe that with this boost for skill development, businesses will be more focused on investing in gigification, allowing them to have a stronger presence in Tier-II and Tier-III markets.
Kamal Bali, President & MD, Volvo Group, India
A progressive, thoughtful, imaginative, and growth-oriented budget that touches all socio-economic segments, while embracing technology & modern tools of governance. The budget has rightly allocated the highest ever Capex of 100 billion dollars (Rs 7.5 lac crore), up 34% over the last year, aimed at creating & improving our logistics infrastructure through PM Gati Shakti NMP, as well as social sectors of health, education, women, housing and the needs of our 112 aspirational districts. This, while following the agreed pathway on the fiscal deficit (4.5% by FY 25-26).
Focus on logistics will help solve supply-side challenges and curb structural inflationary challenges. Public transport, urban infrastructure push, and inter-operable battery swapping policy are big positives. Extension of ECLGS credit guarantee to MSME and hospitality sectors is a welcome step. Great to hear the mention of sustainable solutions in public procurement policy with due credence to clean & green tech, quality, and cost (instead of simply L1 approach). The Capex of 7.5 lac crore (if implemented with speed) will have a huge multiplier effect on jobs and will further kick in a virtuous cycle of consumption growth.
Finally, the digital rupee is in the right direction. Thankfully, no major negative surprises in this purposeful budget.
Bala Sarda, Founder & CEO, VAHDAM India
A growth-oriented budget with boosting manufacturing and building infrastructure. A 35.4% increase in capital expenditure is a step in the right direction. Execution will be key. I look forward to the government launching the next phase of ease of doing business. The use of Kisan drones for crop assessment, digitization of land records, spraying of insecticides and nutrients will give a boost to natural farming. Additionally, the Rs 6,000 crores program to be rolled out for MSMEs over the next 5 years is a very positive move. The move to extend the 15% concessional tax rate for new manufacturing companies to start production till March 31st, 2024 is positive. This is truly the decade of startups and entrepreneurship in the country and an expert committee being set up to suggest measures to help attract investment will go a long way. I hope the government reduces long-term capital gain tax on private equity soon.
Pranav Goel, CEO, Porter
The Union Budget 2022-23 announced today has restored the much-needed confidence in the startups and logistics sector in the country. The focus on the PM Gati Shakti Master Plan to fortify the logistics infrastructure with the help of digitization, will benefit young digital startups under this space. With enhancement of this multimodal national plan, the country hopes to ease bureaucracy and create seamless logistics infrastructure. The proposed unification of data exchange among all-mode operators will enable a positive momentum in efficient movement of goods. Furthermore, by laying focus on accelerating the capacity building of EV infrastructure, the announcement of the Battery Swapping Policy for electrifying urban mobility and clean public transport, comes as a welcome sign for companies hoping to move towards an electrified future. By extending the tax incentives to boost the startup ecosystem by one more year, the Union Budget has once again helped startups by providing the support for sustained growth.
Ravichandran Purushothaman, President, Danfoss India
We welcome the progressive and growth-oriented budget presented by the Finance Minister Nirmala Sitharaman for 2022-23. As part of India’s new blueprint of infra growth for the ‘Amrit Kaal’, the increased capital expenditure, 35.40 percent above last year, will create more infrastructure, which will have a huge multiplier effect on the economy. With economic growth pegged at 9.2%, ahead of other large economies, and a sharp focus on sustainability and circular economy, India is well poised to withstand the challenges and reach closer to the $5 trillion GDP ambition.
With capital expenditure estimated at INR 10.68 lakh crore for 2022-23, the government has laid out the roadmap to boost India’s holistic growth. The Budget has also given the much-needed impetus to India’s agriculture and education sector with measures such as 2.37 lakh crore direct MSP payment to farmers, DESH stack, One Class One Channel. By promoting chemical – free natural farming, industries can now lead the way in boosting sustainable productivity and increased income of farmers.
While the highlight of the budget was on healthcare and infrastructure sector, some prudent initiatives for MSMEs and India Inc for start-ups have also been announced. The announcements related to green bonds and energy savings for commercial buildings, highlights India’s commitment towards reduction of carbon emissions.
To facilitate energy management, Government of India has promoted the adoption of the Energy Service Company business model for large commercial buildings. By enabling capacity building and energy audits, performance contracts, common measurement and verification protocols, this service helps in imbibing energy savings as a core value in industries across India. By providing major financial allocations to energy efficiency and data centres the path towards clean energy storage is clearer than ever. We hope that Budget 2022 acts as a guiding force to lead our government’s ‘[email protected]’ initiatives.
Kamaljeet Rastogi, Chief Executive Officer, Manipal Business Solutions
We have witnessed some noteworthy initiatives in the Union Budget 2022 – 23, focused on laying a solid foundation for [email protected] with a commitment to creating a highly inclusive fiscal state. The policies implemented towards financial inclusion will benefit the fintech industry by enabling post offices to provide digital financial services and setting up dedicated digital banking units across the country. These policies will strengthen Manipal Business Solutions’ (MBS) vision of accelerating the Digital India Initiative and providing the right platform for boosting financial inclusion.
Another important step taken is the inclusion of universities around the world to offer specialized courses in finance, management, and fintech, creating highly skilled individuals to further the sector growth in the country. Digital currency backed by blockchain technology initiative by RBI will help the sector grow rapidly.
Sonit Jain, CEO, GajShield Infotech
The impact of Covid on the electronic supply chain has impacted production for many industries. In the upcoming budget, we would like to see a major push and incentive for setting up electronic and chip manufacturing in India, reducing our dependency on imports and helping to create an eco-system to drive innovations in India. To make India a global player in the high tech industry, we look forward to export incentives for Made in India, networking and security products. Skilled manpower is a key requirement for every industry, we expect an increase in budget allocation for higher education and R&D which would make our country future-ready and build a work-force ready to innovate and create products for the world. With reduced spending during the pandemic, we are looking forward to an increase in tax slab so that salaried class will have more money in hand, fuelling further growth in the new financial year.
Alain SPOHR, Managing Director, Alstom India & South Asia
We welcome the progressive and growth-oriented Union Budget presented by the Finance Minister for 2022-23. India is poised to regain its title of the fastest-growing large economy with a 9.2% GDP growth estimated for the coming year. With an enhanced capital expenditure outlay of 35% as compared to last year, core infrastructure segments including Railways and Urban Transport stand to benefit and will have a huge multiplier effect on the economy.
Highlight of the budget was the announcement to introduce 400 new Vande Bharat trains over the next three years, introduction of the state-of-the-art KAVACH TCAS signalling systems over 2000 kms of railway network, larger investments to provide for sustainable and integrated urban transport systems. The total budget estimates of Rs 23,875 crore for MRTS & Metro Projects will incentivise faster implementation of projects and the standardisation of metro design systems will provide the much-needed stability for manufacturers.
The development of 100 Cargo terminals over the next 3 years will also improve India’s competitiveness in faster and cleaner logistics and freight movement by rail. The announcement of a new legislation regarding Special Economic Zones is a welcome step as it will help India enhance the competitiveness of its exports and integrate successfully with global supply chains.
From a policy standpoint, launch of the next phase of Ease of Doing Business (EoDB 2.0), is a step in the right direction. Modernized rules for evaluation of complex tenders especially transparent quality criteria and provisions for payment of 75% of running bills mandatorily within 10 days will encourage faster dispute resolution.
Introducing PLI scheme for railway manufacturers and exporters promoting Make-in-India would have been ideal for fast-tracking the implementation of projects and supporting the manufacturing ecosystem. We were anticipating FM’s announcement regarding plans for the private train operations; however, this budget provides the overall push towards economic growth and addresses the key priorities of the Government.
George Rajkumar, Country President, Grundfos India
Budget 2022 has laid the foundation for [email protected] with the Government showing its commitment towards a sustainable and a greener future for Indians. With India expected to grow at 9.27%, the much needed impetus towards climate action has been observed in this year’s budget. The allocation of INR 60,000 crores towards the ‘Har Ghar Nal Se Jal’ initiative to connect 3.8 crore households with tap water connection is commendable and will also boost the country’s water infrastructure. While nearly half of our population is residing in urban areas, the focus on sustainable measures for megacities must also include sustainable management of water and wastewater to prevent loss of water, improve recycling and also reduce destruction from natural calamities such as floods and droughts. The roadmap of transitioning towards a circular economy across sectors is also a welcoming move and will have a direct impact on our fight against climate change. The introduction of sovereign green bonds for funding of green infrastructure and the energy audit mechanisms for large commercial buildings will be a game-changer for infrastructure projects, enabling further carbon reduction while we grow our economy by leaps and bounds.
Aman Tekriwal, Co-founder, Supertails
There has been a great focus on growth and sustainability in this year’s budget, which is going to drive India’s overall development. Notably, the tax exemption for startups extended to March-2023 and the reduction in surcharge on capital gain tax from 37% to 15% is positive and welcome news for startups.
Steps such as the highway network to grow by 25,000 km with an ambitious goal of 280 GW solar capacity by 2030 are going to be big drivers of growth. Further, allocating INR 1500 crore for development in northeast India is a huge step in fast tracking inclusive economic development for the nation.
Kartik Shahani, Country Manager, Tenable India
The 2022 Union Budget looks promising and paves the path to economic recovery. As India aims to achieve competitive success in the global economy through budget allocations in critical infrastructure, healthcare, technology and innovation, securing the digital infrastructure that binds society in modern times needs to become the primordial priority for organizations, across the private and public sectors. This means that organizations in India must take a good hard look at their cyber hygiene practices and have the ability to continuously monitor and verify every attempt to request access to corporate data at all levels, whether that’s a device, app, user or network attempting to make that connection.
The expected 5G spectrum auction this year, coupled with the Indian government’s goal to digitize processes for citizens through e-passports and e-registration services, presents manifold cybersecurity challenges. Increased adoption of IoT, in critical sectors and industries only pose greater challenges and threats that could have a direct and huge impact on society. Furthermore, the proposed launch of the Digital Rupee using blockchain technology opens fresh avenues for cyberattackers seeking payment from victims with only a modest risk of detection. If there is one thing we learned from 2021, it’s that cybercriminals are relentless and lucrative in testing the resilience of India’s digital systems. It’s more important now than ever that technological advancement and innovation must be guided by security in mind to protect India’s interests but more importantly establish deterrence against threat actors.
Vasudeva Rao Munnaluri, RVP India & SAARC, Zendesk
We welcome this technology-focused budget, which will help boost India’s growth. The Union budget 2022-23, with its support for businesses, will have a constructive impact, considering the unprecedented times we live in. The continuation of tax breaks for the startup sector and push for 5G in manufacturing is promising for the continued growth of these sectors on a global scale. The focus on digital transactions coupled with measures for ease of doing business will give Indian fintech startups the much-needed thrust. The concessions for intelligent devices is also an important step towards increasing IoT adoption across sectors. All in, we are encouraged by the focus on enabling transformational technologies that will allow Indian businesses to harness the opportunities for growth.
Aayur Kaul, Market Head, Skillshare India
The focus on online learning in the Union budget 2022-23 will propel growth in India’s edtech industry. The pandemic changed the atmosphere of learning in India, with most classes being conducted online. The focus on online-learning is a step towards democratizing learning in India. Skill-based online learning took the center stage in this year’s budget, highlighting the importance of vocational and creative classes that online learning enables. The announcement to launch a Digital University and dedicated online videos, quality online content will see a higher demand, creating a positive environment for online learning companies to grow in India. Skillshare being an online learning community for creatively-inclined people, we welcome the focus on edtech in the budget.
Subodh Parulekar, CEO and Co-Founder, Afour Technologies
In an effort to propel growth, the budget for 2022–23 provides tax sops for startups and supports digital transformation across industries. The tax exemption for the startup sector has shown the government’s commitment to building a dynamic and robust startup ecosystem. The announcement of the digital currency is a historic move in India’s financial history and promises to open up new vistas of growth and innovation in the sector. The impetus on design-led manufacturing for 5G is another important sector that could nudge India’s economy toward sustained growth. The budget is timely and futuristic. We believe that these measures will make India a fast-growing, digitally empowered, and forward-looking economy.
Naman Shah, Founder & CEO, NowPurchase
Given the unusual times we live in, the Union budget for 2022–23 has been quite positive for Indian enterprises. The government’s decision to push skill development through the DESH Stack e-portal is commendable. The proposal to extend a 6,000-crore RAMP programme for Micro, Small, and Medium Enterprises (MSMEs) over the next five years is encouraging for increasing competitiveness of this sector. We expect that the government’s efforts to interconnect MSMEs’ portals such as Udyam, e-Shram, NCS, and Aseem in order to broaden the scope will aid the formidable growth of the MSME sector. Along with this, the gradual phase out of some custom duties should definitely bolster manufacturing. The government’s support for India’s startup and MSME sectors has continued this year, and the industry is poised to be back on a growth trajectory after an unprecedented last financial year.
The PLI Schemes, which now cover fourteen sectors, are expected to contribute to increased production of Rupees Thirty Lakh Crores, with the potential to create sixty lakh new jobs over the next five years. Because of the government’s strong push for PLI Schemes, India may incentivise international investors to set up manufacturing units in India and support local manufacturers to expand their units and generate jobs, enhancing India’s global competitiveness. As a technology-driven procurement platform, NowPurchase finds the budget to be extremely satisfactory.
Sripad Nandiraj, Founder, Hocomoco
The Union Budget 2022-2023 presented by FM Sitharaman for the affordable housing sector will undoubtedly encourage the sector’s next stage of growth. The announcement that an urban planning panel would be established and that 80 lakh affordable houses will be built at a cost of Rs 48,000 crore under the PM Awas Yojna in 2022-23 is a positive move. This would help to enhance the affordable housing market and promote affordable housing in metropolitan areas for the economically weak and middle class. The challenge, however, according to the Economic Survey, is to significantly increase infrastructure spending. India spent $1.1 trillion on infrastructure during fiscal years 2008 and 2017. It will now need to spend $1.4 trillion to reach a GDP of $5 trillion by 2024-25, according to its recent report. Additionally, the Gati Shakti plan, which aims to bring 16 ministries together to work on infrastructure and connectivity projects, is also a beneficial move that will aid the affordable housing plan. From Hocomoco’s standpoint as a construction aggregator company, the budget is extremely encouraging.
Namrata Reddy Sirupa, Co-founder, Satliva
As a startup, we are pleased with the FM’s budget announcement. The FM has declared that the incentives offered to them would be extended for another year. Startups have emerged as an economic development engine. In light of the pandemic, tax benefits for entrepreneurs have been doubled from three to four years after incorporation,” the minister said while unveiling the Union Budget 2022. I believe that the one-year extension of the startup incentives will be a game changer because the epidemic has affected all sectors, and this relief will allow startups to plan for the future more efficiently.
Emerging-market companies raised a record $42 billion in global and domestic financing in 2021. The number of Unicorns, or companies with a billion-dollar valuation, nearly quadrupled this year, with 42 new companies joining the exclusive club, bringing the total to 83.
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.
Rakesh Saraf – Founder and Director, Windsor Digital
Budgets should not be a surprise. However, in India, we have been accustomed to surprises in the budget. The less surprises there are in the budget, the better it is for the economy and the country.
This budget contained few surprises, either good or bad. The recognition of digital transactions as being part of the mainstream economy is a step in the right direction. Cryptocurrency whether issued by bitcoin, ethereum or the RBI is also a positive move.
Dr. Aashish Chaudhry Managing Director, Aakash Healthcare and Aakash Group of Companies, Dwarka
The Union Budget has built the groundwork and provided a blueprint for the economy over the next 25 years. We are happy with the decision to create an open platform for the National Digital Health Ecosystem. This will include digital registers of health professionals and facilities, a unique health identity, and universal access to health care facilities. The pandemic has brought the subject of mental health to the forefront. For this, the government has announced a national telemental health programme. This would include a network of 23 excellence telemental health centres, with Nimhans serving as the nodal centre and IIIT Bangalore providing technical support. This would undoubtedly improve access to high-quality mental health counselling and treatment services.
Dr Gauri Agarwal, Founder & Director, Genestrings Diagnostic and Seeds of Innocence
We are happy with the decision to make the National Digital Health Ecosystem an open platform that will provide universal access to health care facilities through digital health professionals. The government has also announced concessions on the customs duty levied on mobile phone parts making them cheaper which means more people will be able to make use of the digital health ecosystem. Both of these steps combined together will significantly improve the telemedicine sector’s ability to advance even to the most remote corners of the country. Upgrading existing women and child development programmes such as Mission Shakti, Mission Vatsalya, Saksham Anganwadi, and Poshan 2.0 would also significantly improve women’s health and lifestyle. Overall, the health budget forecast for 2022-23 is Rs 86,606 crore, a 16% increase above Rs 74,602 crore in 2021-222. This will assist the nation in upgrading our health infrastructure as well as preparing for various new challenges.
Sugandh Ahluwalia, Chief of Strategy, Indian Spinal Injuries Centres
The digital infra push right from health, banking to education has been the major highlight. The announcement of rolling out the National Digital Health Ecosystem will give a major push to our nationwide digital registries of health providers and health facilities amidst the pandemic. Even the Finance Minister Nirmala Sitharaman acknowledged the unprecedented crisis and began her budget speech by expressing empathy to those who suffered during the pandemic. The implementation of a national tele-mental health program, which will have tech-support from IIT Bangalore, will give an impetus to mental health issues as the pandemic has accentuated problems of stress and depression in the people. Though it shows the government is responsive to the needs of the nation, the government must also focus on health infrastructure.
Shivam Sinha, Founder and CEO, Indiassetz
I’m delighted to see that investment finance has been identified as one of the Budget’s seven pillars. It is critical for investors in all asset classes to identify the right assets and investment patterns in order to maximise their returns on investment. When done correctly, this has an immediate impact on inclusive growth, thereby enhancing society as a whole. The government has also focused on digital asset tax reform. This lays the groundwork for investors to grasp the many types of assets, the tax implications of each, and then select the appropriate asset class to invest in. Furthermore, public investment in infrastructure modernization will enable the economy to grow exponentially, beginning in the most remote corners of the country.
Akarsh Singh, CEO and CoFounder, Tsaaro Academy
The government’s intent to impart critical-thinking skills and creativity through vocational courses is a welcome move. With data privacy becoming a major concern amidst rising digital transformation, there is a dire need to prepare students and professionals with these capabilities. They need to know about privacy, identity theft, or cyberbullying in the digital age. We were expecting the government to put more emphasis on this subject, especially when the Data Protection Bill is under consideration this year.
Nevertheless, moving forward, we urge the government to introduce a few initiatives that create more awareness around the importance of data privacy from an early stage. This could be made part of the curriculum on the TV channels being introduced for online education or even be considered as an important aspect in the framework of the digital university that the government plans to set up.
Kumar Abhishek, Founder and CEO, ToneTag
The budget is in line with the convictions and ambitions of the government to push digital inclusion to the remotest parts of the country.The proposal to set up 75 digital banking units through scheduled commercial banks and connecting post offices to core banking is a step in the right direction and will prove to be a vital probing point for digital reception and acceptance.The allotment of capital for research and development for start-ups and exemption on various tax fronts will provide a much-needed leeway for start-ups to focus more on innovation and product development. It also opens up avenues for start-ups to diversify and expand into new territories.
This advancement in innovation coupled with the massive boost in digital infrastructure will not only reinvigorate the existing digital ecosystem but also provide an easy path for start-ups, especially Fintech firms, to penetrate deeper into the country.
Anurag Garg, Founder and CEO, Nivesh.com
To me it is a very impactful budget, benefits of which will be realized in coming years. In investing, we promote long-term over short-term. I feel this budget is also focused on the long-term future of the economy rather than focusing on short-term populist measures. There has been a strong focus on adoption of digital at all levels, which will go a long way in bringing transparency and efficiency. This includes the initiative of taking e-services to villages and spending on laying optical fibers to all villages for easy and fast internet access. Then the step of introducing a single registration process across the country for land is going to be a major reform. Government is also keen on promoting MSMEs and startups and announced various measures, including extension of tax benefit by one more year. This will boost entrepreneurship and eventual economic growth. January had an all time high GST collection of Rs. 1.4 lakh crore which clearly signals that economic recovery post covid is very much real and this budget will provide more pace to the recovery. No benefits have been provided to the salaried income tax payers, which is likely to disappoint this class.
Yogita Tulsiani-MD& Co-Founder, iXceed Solutions
The years 2020 and 2021 were fraught with ups and downs. The budget for 2022 includes a variety of measures to get the dispersed enterprises back on track. The FM has increased this tax exemption ceiling, accessible under section 80 CCD (2), for this group of employees in the budget 2022. This advantage is available under both tax systems. Not just this government’s effort on leading jobs and entrepreneur opportunities will help in reduction of unemployment Furthermore, in order to encourage and welcome investments for startups, the FM extended the capital gains exemption for investment in startups by one year, until March 31, 2022. This will undoubtedly be a relief for them and a significant step for the betterment of the community.
Ashish Bhatia- Co- Founder, India Accelerator
The budget looks like a big boost for startups in India. The Ministry of Finance has extended the tax break for businesses by one year i.e. for the third consecutive year. This will not only assist entrepreneurs to obtain a much-needed boost after the pandemic but will also help them expand financially. Aside from that, Startups serving agricultural and rural sectors will be served with a fund mobilized via NABARD will be another feather in the cap.
Additionally, to promote and welcome funding to the startups, the FM also extended the capital gains exemption for investment in startups by one more year till March 31, 2022. The budget is a pro for drone centric startups because the government will now promote “Drone as a service”.
Siddharth Gurjar, Founder , Minix India
`In the current climate, it’s good to hear the Hon. The Finance Minister speaks more about domestic manufacturing since it is the need of the hour to claim a place globally.Exception on Customs duty rates are being calibrated to provide a graded rate structure to facilitate domestic manufacturing of wearable devices, hearable devices and electronic smart meters is somethings that help wearable market to grow post pandemic.
Kushang, Co-founder & CEO, SupplyNote
Indeed the food & beverage industry in India was bleeding, and it required a lifeline to recover. Though the government certainly announced a number of steps for its resurgence, the Budget announcement of extension ECGL service for the sector will play a significant role to empower the vertical once again and get it up and running. Additionally, a slight consideration on the investors front on funding the F&B startups could have further accelerated the recovery of the industry. We further expect fundamental policies to revive the vertical in the country.
Mukesh Kumar, Chief Executive Officer, Infiniti Mall
The budget 2022-23 presented by the Honourable Finance Minister is a balanced and forward-looking one, supporting the economic recovery of the country. The focal point is to stimulate the capital expenditure that will aid in employment generation and economic growth.
We welcome the decision to initiate the second phase of Ease of Doing Business 2.0, which focuses on making processes more seamless with the encouragement of digitization of the previous manual processes. The conscious decision to eliminate the existing overlapping compliances will definitely ease the functioning of the overall industry. A better policy will create an impact on the retail sector in the long term and will make the country an investment-friendly destination. The focused initiatives brought forward by the government will put India on a sustainable growth path.
Satish Kannan, Co-founder & CEO, MediBuddy
Rising concerns relating to health have been worrisome amongst young individuals and adults alike in the country for quite a while.
The pandemic has only further escalated and triggered these issues, further causing a rise in the same. We warmly welcome the decision taken by the Honourable Finance Minister in the budget to set up a National Tele-Mental Health Programme, to support the mental health grievances of citizens across the country. It is a much-needed initiative that holds the potential to provide assistance and guidance to those who are suffering.
We truly believe that one’s mental health is as important as their physical well-being, and if there is something that’s bothering and affecting them, we want them to know we are here for them. MediBuddy has been a pioneer in the industry at assisting individuals dealing with mental health issues.
We have the teleconsultation infrastructure in place to tackle any health problems and are geared to extend our assistance in any way required to strengthen this initiative. We are confident this will aid in helping people who need support and timely care.
Jayakumar Krishnaswamy, Managing Director, Nuvoco Vistas Corp. Ltd.
The Union Budget 2022-23 presented by the Hon. Finance Minister, Smt. Nirmala Sitaraman provides a much-needed boost in the infrastructure segment. The slew of measures announced will provide the necessary thrust for an infrastructure-led economic revival. Announcements like – allocation of INR 20,000 crores towards Gati Shakti Yojana, public investments for modern infrastructure, plans for the construction of 25,000 km of national highways, urban development and sustainable living, increased budgetary allocations of INR 48,000 crores under the PM housing schemes, the introduction of Modern building by-laws will provide much-needed impetus for India’s building material industry.
Announcements towards the reality segment by allocation of INR 44,000 crores under PM Awas Yojna to complete 80 lakh affordable houses in 2022-23 is a positive to the cement industry. Also, the proposed 35% increase in capital expenditure will definitely help to revive the economy that has been under pressure due to pandemic impact and rising inflation. Overall, the budget will pave the way for the country’s growth going forward.
Maulik Patel, CMD, Meghmani Finechem Limited
Manufacturing and chemical sectors have been at the forefront of ‘Make in India’ initiative in the past two years when there was high volatility and uncertainty due to the COVID-19 pandemic and anti-China sentiments. We are quite happy with the Union Budget 2022, as it culls out quite a few strong highlights, especially for the manufacturing and chemicals sector, that will further drive the country’s economic growth.
The manufacturing and specialty chemicals sectors form the building blocks of many industries. Therefore, the government’s proposal to reduce customs duties on certain key chemicals, including methanol, will be a huge relief for the sector.”
Ronak Chiripal, CEO, Nandan Terry Limited (Chiripal Group)
The Union Budget for the financial year 2022-23 emphasises on economic recovery from the implications of the COVID-19 pandemic and to boost the country’s growth trajectory in the next 25 years. The budget focuses on central expenditure to initiate growth, thereby creating jobs in the infrastructure and rural sectors.
The textile sector was expecting more in terms of cotton policy, tax rebates and central support to the sector to reel over the current cotton and logistics crisis. We support the government in its intention to boost growth and appreciate the budget for being focused on the long-term economic welfare of all.
Gaurav Davda, Head-Corporate Finance & Strategic Initiatives, Jindal Worldwide Ltd
The infrastructure-focused Budget has effectively addressed the issue of economic growth which was severely impacted due to pandemic. Incentives to MSMEs would provide an impetus to manufacturing in a big way. We welcome the move of reviewing and simplifying the customs rate and tariff structure as textiles would be one of the beneficiaries of this. However, the textile manufacturers would have liked the Government to include natural fiber too as part of Product-Linked Incentive scheme to boost the production and export in the wake of strong global & domestic demand.
Ishani Behari, Chief Marketing Officer, Brigentech Consulting
The budget is forward-looking and growth-oriented. Digitalization is one of the major themes of this budget with announcements around the digital economy, digital health eco-system, e-passport, amongst others. The government has recognized technology as a major enabler for India’s economic growth and building one of the most advanced digital economies in the world. We also welcome this budget’s emphasis on strengthening talent capacity through skilling courses and the formation of a digital university to enable India to become a global hub for skilled talent.
The government has also opened its doors to digital currency and thereby will boost the blockchain and crypto ecosystem in the country. This is a great step for further developing the talent pool for emerging technologies
Ankur Gupta, Founder & CEO of Ruptok Fintech Pvt Ltd
Continued incentives for startups will help them curb the impact of COVID. We are glad to see a digital-economy-focused budget. The proposal to set up 75 digital banking units is an incredible push for the lending sector in India. Digital adoption and payments will also expedite the growth of fintech startups in the country. This move will help India to become a digital-first country.
Pratyush Chandramadhur, Chief Business Officer, Fintelle
Setting up 75 digital banking units (DBUs) in 75 districts across India through scheduled commercial banks is a welcome move. The introduction of a digital rupee will also lead to wider digital adoption and enable a digital-first economy. The announcement of the use of emerging technologies like blockchain in RBI will keep the momentum going towards modernizing the technology infrastructure. This will give a push to not only the government sector but also emerging fintech companies and digital ecosystem enablers. Together, these policy changes will take India forward in the direction of financial inclusion and digital transformation at scale.
Vikram Subburaj, CEO, Giottus Crypto Exchange
We are delighted by the announcements today. It gives relief to a lot of investors that the Government is recognizing the crypto asset ecosystem and has taken efforts to give clarity on its taxation. This legitimizes the crypto asset in the country and paves way for a formal umbrella of regulations going forward. A standardized 30% tax treatment is welcome though we await the details on what is a taxable event and what is the threshold for 1% TDS deduction. We do hope that the Government will give exchanges and other businesses a certain time period to enable the tech behind TDS deduction and bookkeeping. Offsetting and carry forwarding losses have worked well in other countries but we are happy to see a consideration given to all such instances. The issuance of a central bank digital currency (CBDC) by the RBI will enable an efficient transfer of digital rupee much like UPI, IMPS or NEFT. This can make transfers cheaper and enable 24×7 serviceability. Overall, we believe that the ecosystem along with its businesses and investors are primed for growth in the upcoming future. The Government, we believe, has already laid the foundation for a future thriving and sustaining industry.
Shrey Aeren, Managing Director & Country Head, Berkshire Hathaway HomeServices Orenda India
The country is estimated to grow at a rate of 9.27 percent this year, thanks to new changes introduced in the annual Union Budget 2022-23. Nirmala Sitharaman, India’s Finance Minister, delivered a growth-oriented budget that attempts to boost the economy despite rising inflationary pressures and the rise of Covid-19 infections. Starting in 2022-23, the Reserve Bank of India will issue a new digital rupee based on blockchain technology. In addition, digital currency will result in a more efficient and cost-effective currency management system. A new and promising type of investment mechanism, ‘Green bonds’ will be a strong way to fund ‘green infrastructure. The government can fund climate resilience and environmentally targeted projects, help sustainable energy initiatives get more funding. Another major reform is the allocation of Rs 48,000 crore under PMAY urban and rural schemes that will give a significant raise to affordable housing. Around 80 lakh houses are expected to be completed by 2023 across the country. In conclusion, the budget seems to have all the right capital investments, leveraging the fiscal space towards rapid GDP growth.
Akshita Gupta, CEO, ABL Workspace
The budget has brought in some remarkable changes for the start-up community. We are elated with the fact that the government has decided to join Udyam, e-Shram, NCS and ASEEM portals to create a larger organic and live database that will help in providing G2C, B2C and B2B services around credit facilitation, skilling, and recruitment. We are also delighted with some of other announcements including the setup of expert committee to suggest measures to help attract investment in the startup ecosystem, and extension in existing tax benefits to startups by 1 more year helping them avail redemption of taxes for 4 consecutive years now. We feel that these steps will not only help in formalising the economy but will further enhance entrepreneurial opportunities for many.
Dr Sunita Maheshwari, Chief Dreamer, The Telerad Group
In today’s budget the aim to provide internet connection in every village that was announced can enable telemedicine services to expand rapidly in rural India. The roll out of the National Digital Health Ecosystem and Tele mental health programs for counselling will further enable the growth of telehealth in India. Some other projects that were announced will also have a positive impact on public health. For example, the Rs 60000 crore allocated to enable tap water supply to 38 million households will allow for cleaner, safer water to homes. This will reduce the chances of diarrhoeal diseases and growth stunting apart from making living easier for millions of households.
Dr Manoj Singh, CEO, RUBIKA India
Very intrigued to know about setting up of the digital university and the AVGC task force that the government has announced in the budget today. The budget certainly looks to be forward looking and promising as the AVGC (Animation, Visual Effects, Gaming and Comics) industry in India happens to be worth about 40 billion dollars today and would be growing to about 60-70 billion dollars by 2027/28. This is a very welcoming step keeping in mind the growth in AVGC industry, augmenting global demands for quality content and the current resource crunch of the trained and skilled individuals. We sincerely look forward to seeing an ecosystem being developed for the same.
Vandana Luthra, Founder, VLCC Group
As a leading player in the Wellness services and products domain it is gratifying for us at VLCC to note the key initiatives in this year’s annual Budget specifically with regard to Healthcare and Skill Development.The allocation of INR Rs 64,180 crore over the next six years to improve healthcare services and the National Tele Mental Health program are welcome and critical steps in the pandemic era. Also, the roll out of the National Digital Health Ecosystem will go a long way in ensuring universal access to health facilities and it is an expectation that it will also expand to bring in preventive healthcare services under its ambit.
The launch of the Digital Ecosystem for Skilling and Livelihood (DESL) and greater aligning of the National Skill Qualification framework with dynamic industry needs, will not only make the youth gain more relevant job-ready skills but also provide an impetus to growth of Learning & Development players and ed-techs.
Richard Theknath Chairman & Managing Director, Jet Freight
Jet Freight’s plan to focus on engaging more electric vehicles for its last-mile deliveries to reduce carbon emissions is in line with the budget’s blueprint for formulating a growth path and further emphasizing on go-green initiatives. The Battery swapping policy will encourage e-commerce players to opt for EVs as a preferred choice for meeting their delivery requirements in an eco-friendly way. The launch of a Unified Logistics Interface Platform to ease data transmission between the stakeholders in the logistics sector will bring efficiency in the movement of commodities by reducing travel costs and time. Even the building of adequate EV charging stations will be a significant growth driver for change in the logistics sector and enable us to expand our operations beyond the city limits of Mumbai and Pune. The Gati Shakti Masterplan for expressways, 100 new cargo terminals for multi-nodal logistics, and the development of urban metro systems will give a big boost to new warehousing and logistics facilities across the country.
Nimish Gupta, Founder and Co-CEO, GenLeap
The focus on digital and technology integration across sectors including education in Budget 2022 with the announcement of inclusive digital universities and establishment of a digital DESH-e portal for skilling and up-skilling of citizens is a welcome step. However, the lack of specific budget outlays, policy directives and tax incentives for the EdTech sector, which has played a massive role in the revamped education ecosystem, is quite disappointing. We were hoping for favorable taxation policies for the online learning sector with lower GST. Even as the government eyes creation of 60 lakh jobs in the next five years, the budget lacks clear, decisive steps to improve skilling and employability.
Ashutosh Mishra- Head of Research – Institutional Equity, Ashika Stock Broking
The union budget of 2022 is a very capital-intensive budget and bodes well towards the government’s vision of pushing infrastructure and manufacturing as two of the key sectors to be intensified. The greater emphasis on commitments for ‘Made in India’ is revenue generating as well as creating employment opportunities all over the country. With progressive measures being taken towards bolstering the digital transformation in the country, there will be positive effects in sectors of education, healthcare, fintech, banking, and upskilling. The fiscal deficit is estimated at 6.8% of GDP in FY22 (vs 9.5% in FY21). The government intends to narrow this to below 4.5% of GDP by FY26. With the setting up of a DFI with initial capital of INR 200bn, to finance capex, and continuing the PLI schemes, the government is committing itself to a growth manifesto and a holistic budget that is futuristic and not just limited to a fiscal year. With concerted efforts towards boosting infrastructure, logistics, digital transformation, and introduction of digital money, the government intends to reach out to the unbanked and unserved populace of the country. It is a universal budget and an inclusive budget. While it may not be a populist one, but it is a long term, growth-oriented budget and that itself is a positive place to start off with. There is also an added importance to support faster debt resolution and deepen the corporate bond market by the proposal of a permanent institutional framework to purchase IG bonds during stress scenarios.
Viraj Vyas- Technical & Derivatives analyst, Ashika
The union budget overall looks positive and is focusses on an economic recovery mindset, with the pandemic and its repercussions as its premise. However, the budget looks quite moderate, over what was anticipated. Nifty Index has been undergoing price and time correction since October 2021 and while the Budget is usually a strong event, this year’s budget was on a tepid note. The major theme seems positioned in favour of the infrastructure development in India. What particularly stood out was the gusto with which the intraday dip was bought into might signal a change in stance from market participants. Going forward, I would continue to be skeptical on the Index if 18,300-18,500 level is not taken out with a price intense move. Having said that, few pockets in the market look attractive like the Cement, Capital Goods and specialty chemicals space and I would continue to watch stocks in this space. Also, on a positive note, there has been no tax increase, which also comes as a relief. Fiscal austerity overall has been masked by economic growth. The seven engines on which the budget has been outlined as a vision budget are roads, railways, airports, mass transport, ports, waterways, and logistics infrastructure which will be supported by energy transmission, IT, water, sewerage and social infrastructure. These are the areas to look forward to and we will expect to see the government’s commitments to these sectors.
Amit Jain, CEO and Co-Founder, Ashika Wealth Management
This budget looks to be very pragmatic , conservative & growth oriented for the Indian Economy. Apparently, it looks like that government is trying to under commit & over deliver on both Economic & Fiscal front. If I summarise the budget 2022-23 theme, then I will say it is a “ Green-tech “ budget with “ self-sufficiency” as the underlying theme. In my view , in this era of Deglobalisation & re-emerging Geo-political power game between Western World on one side & Russia, China on other side, India has to be a self-reliant Economy by 2040. This budget takes a step further in that direction along with Long term directional move for the Green Energy Economy & making India a manufacturing hub in the medium to long term. From here on Capital Goods, Infrastructure & Defence sector should be in focus. We appreciate the government’s move for raising funds through Green Energy funds, which may be a Game Changer for selected PSU’s , as there are a lot of Global Funds who invest in these ESG bonds & re-engineer the old Economy fossil fuel base business models to new age green Energy business models across the Globe. We welcome the government’s move to digitalise 1.5 lacs post offices across India & creating 75 digital bank units, which will merge the rural informal Economy into the mainstream Economy. Also, blockchain based digital INR is going to be a pride for India as a country. It will place India at par with the elite stature of Western World.
In our view, this ongoing decade of 2030 is going to be decade of capital Expenditure by Indian Corporates, as we are at the verge of beginning new bull run of Indian Economy & this beginning can not be better than this budget as Government itself has surprised by increasing proposed capital expenditure to Rs.7.5 lacs crores, which is an increment of almost 40% compare to last budget & almost double for FY 2019-20. Also, a directional call for targeting fiscal deficit @ 4.5% by FY 2026 & limiting surcharge on long term capital gains at 15%, is a soothing statement for Capital Markets. By taxing digital assets @ 30% , Government has recognised Crypto currencies as an asset class, which may be a relief for 10 crores Indian Investors , as now it will be an accepted Asset Class for Indian Investors.
In my overall evaluation of this budget , I feel this budget will be the foundation stone for the Indian Economy to unfold its locked value in the long run”
Paras Bothra, Personal Finance,Ashika Stock Broking
“This Union Budget has been a positive one with an emphasis on capex boost, which defines the government’s pro-growth stance. The markets are reacting favourably to the budget. If you look at the capital expenditures, that has been raised to 35.4% to fund various infrastructure projects. That bodes well for a balanced and rapid recovery of the economy. The public investment will aid a very resilient India to come out of the pandemic distress. However, the focus on consumption is less emphatic as compared to the capex part of the economy. The fiscal deficit also remains a bit elevated, though it is going to be lower than last year. So, infrastructure, capital goods, manufacturing led companies who have been given investment too, along with the solar production-linked incentive (PLI) scheme, affordable housing amongst others are the areas where the Government has laid major emphasis. The budget aims towards long-term growth with a focus on clean energy, which is also one of the key drivers of the future. The spendings are all growth oriented, focused towards creating employment, and boost overall agri-economy and infrastructure creation
Harsh Tewaney, Auto Sector Analyst, Ashika Stock Broking
The budget envisages a battery swapping policy that will help overcome a key hurdle of setting up charging stations which hitherto has been moving at a slower-than-desired pace thereby acting as a deterrent for customers willing to switch to electric vehicles. Making a provision for interoperability standards as announced by the hon’ble FM will allow industry to collaborate, innovate and expedite a robust battery swapping network around the country. This will act as a catalyst to promote electrification as many customers are apprehensive of the time taken to charge a battery and the availability of a swappable battery will be as good as re-fuelling a conventional vehicle which will go a long way in assuaging their anxiety
Jason Soans- Senior Analyst, Ashika Stock Broking
The budget is a strongly capex-oriented budget and sets the platform for a robust capex cycle. Budget augurs strongly for quality infra and capital goods players with strong execution skills and healthy financial discipline. One of the best news was that there were no new changes to tax slabs and tax rates, which came as a relief. The budget shows the government’s focus on continuing its commitment towards reviving and bolstering the economic health of the country, with a strong focus on climate change policies, inclusive development, infrastructure and health and well-being. If you notice, then all these sectors are revenue generating and have huge scope and potential for job creation and employment, skill upgradation and rooted to the ‘Made in India’ cause. Some key positive announcements steered towards digital currency, PM’s Gati Shakti National Master plan that focuses on logistics and infrastructure, railways, and roadways. Digital education also has been the focus and that shows the government’s commitment to education for all, and all those affected by the pandemic’s remote learning arrangements. With added attention to ‘Digital India’ and introduction to ‘Digital Rupee’ using blockchain technology. This major thrust on digital banking is good news for the underserved regions of India and is a great bolster for the fintech sector. There have been some incredible announcements targeted at mental health programs, digital health ecosystems, benefits to women and children via the Mission Shakti, Mission Vatsalya, Saksham Anganwadi and Poshan 2.0. With an additional boost to the start-ups sector, I reckon, this budget is not just an annual budget, but a visionary one, with a projection for a futuristic India.