Indian Government has announced its budget for the upcoming year, which is going to be 2016-17. Every year government use to announce several policies which affects the functioning of companies in India, and this year as well, Indian Government has announced several initiative like StartUp India which allows new entrepreneurs to come forward and start their own business with the support from Government.
Several companies have reacted differently to this budget from the government, many are supporting the new taxation policy implemented by company, some are supporting the new initiatives, let see how different companies has responded to budget.
Koichiro Koide, MD, NEC India :- “The Union Budget 2016 has laid out big investments for the infrastructure sector which is a positive in the transformation of India envisaged by the NDA Government. We hope that the investment in infrastructure sector will also focus on execution of the smart and safe cities initiative.”
Pardeep Jain, Managing Director- Karbonn Mobiles :- “With Karbonn’s focus on indigenous manufacturing employing local manpower and skilling them, we are very happy to be an active contributor to the government’s Skill India initiative. However, the withdrawal of BCD, CVD and SAD exemption on mobile phone chargers, adapter, battery, wired headsets and speakers for actual manufacturing is disheartening and is likely to stifle the growth of Indian Smartphone players and impact their price competitiveness. The parts and components ecosystem in the country is still in its nascent stage. While the incentives on local manufacturing announced in the previous budget were welcoming, government should have allowed for a gestation period for local handset players to strengthen their manufacturing capabilities before withdrawing tax exemptions on completely built units”
Virender Aggarwal, CEO, Ramco Systems: “Managing fiscal deficit while addressing sectoral needs has been the focus of this year’s budget. From reforms to uplift Agriculture to providing education and healthcare, focus is on the common man. It is encouraging to see the thrust placed on Infrastructure. Good infrastructure is key to attract global investment and better rail and road connectivity will also give a boost to organized Logistics.”
Mr. Keshav Bansal, Director, Intex Technologies on Budget 2016 – “With a great emphasis on the nine pillars of economy in the FY16-17 Union Budget, the Finance Minister has made a commendable effort towards creating a robust path for the future. We are happy that the budget has walked the talk for Make in India by proposing changes in the customs & excise duty structure in components and sub-components to give fillip to the creation of domestic mobile component ecosystem. The skill development push is another positive as the market demanded and industries have been desperately searching for”
Sudhin Mathur, Director- Smartphone Business, Lenovo Mobile Business Group :- “The Union Budget for FY 2016-17 is a big step in terms of aiding the common man, small entrepreneurs and companies looking to invest in India. Ease of doing business and financial sector reforms being two of the nine pillars that the Government will look towards to transform India, is a welcome move. In addition to this, the rationalisation of custom duties and excise duties for raw materials, manufacturing for the IT and Hardware sector apart from various sectors to boost the Government’s ‘Make In India’ sector are definitely going to boost the manufacturing sector and lower costs for firms looking to do business in India. Passing on duty differential benefits to components and accessories that go into manufacturing of phones is clearly an extension of promoting Make-in-India. It should also help built the domestic component ecosystem in the long term. But till a competitive supplier base is established in India, there may be a marginal increase in cost of the box due to higher cost of accessories.”
Kenny Ye, MD, UCWeb India :- “Finance Minister Arun Jaitley has presented a well-rounded and constructive budget, focusing on most critical aspects of the economy. Thrust on farm sector, increased spending on rural development and infrastructure planning shows that this government means business. The record digitization plan outlined is another major positive. The new digital literacy mission scheme will cover 6 crore additional households and bolster employability of rural youth. There is also the much-needed thrust on entrepreneurship training, higher education and skills development that will help make India a knowledge base. While the reduction in corporate tax is welcome, it is applicable only to select companies and is a minor negative. Measures to reduce tax hassles and address disputes, on the other hand, are a positive. Tax exemption for Start-ups, amendments to Companies Act and allocation for Stand-up India scheme will further aid cost and ease of doing of business in India.”
Mr Gopal Pansari, Director at Savera Marketing :- “We welcome this budget as it is positively. It is a expansive budget covering various sectors and is focused on growth. With respect to IT, few positive aspects are – thrive on innovation and patents from India, increased focus on digital initiatives spend including rural areas are few things to mention. Union Budget 2016-17 is a big step by Government to increase the standard of living of its people and to encourage entrepreneurs and companies to invest in India. In this budget, the government has tried to improve its already announced Start-Up India program which will surely encourage new start-ups to come forward and do business in India. Today, Government has also showed they are trying to make the business operation easier in India so that new companies can come and operate business here in India as well. Government has made several changes to customs duties and excise duties on raw materials, manufacturing for the IT products and Hardware sector which will surely boost Government’s ‘Make in India’ initiative.”
Mr. Pramod Saxena, Chaiman & MD, Oxigen Services, “We are happy with the general direction of the budget as it lays emphasis on development of the rural sector, digitisation and reforms in banking. The digital literacy mission that has been announced which will target 6 crore households with financial literacy, with this the digital connect and payments connect will play an important role. Also, statutory status to Aadhaar will play a very big role in promoting digital payments, social benefit transfers and allowing several services beyond banking & insurance to be also be brought into its fold, whether it is government subsidies or government payments it will open a way for more government payments and subsidies to flow into the financial inclusion program.”
Ambika sharma, Founder, Instappy :- “Government has recently been focusing a lot on the growth of woman Entrepreneurs in the country, cheering them to establish themselves. Allotting funds of Rs. 500 crores especially for them will encourage the startup ecosystem to reach another level. Furthermore, since last budget, service tax has been the topic of discussion and by giving 100% exemption; the Finance Minister has done his bit to act as an enabler. Startups can now more effectively and efficiently concentrate on establishing their businesses and weave their path.”
Soumitra Gupta, CEO, Togofogo :- “We appreciate the Finance Minister’s move on Tax holiday for startups as every startup takes minimum three of five years to setting up the company. We welcome the effort by Indian government for startup industry. It will give a strategic boost to the current ratio of Indian entrepreneurs and will support the Startup India campaign by Modi Government.”
Mr. Puneet Gupta, CEO, Buzzmeeh:- “We welcome the Budget 2016-17 as it’s a well strategized move for Indian startup industry. 100 % deduction on profits for 3 out of first 5 years will definitely strengthen the base as it will assist in setting the right pace for the company. Additionally, the amendment to the Companies Act in order to ensure speedy registrations of fresh startups will also lend a positive boost to the startup ecosystem. These positive moves will surely encourage the entrepreneurs wanting to establish themselves as a key part of the economy.”
Padmanabha Krishnamurthy CFO, Paladion Networks :- “It is a comprehensive budget covering various sectors and is focused on growth. With regards to IT sector to be more specific, few positive aspects are – thrive on innovation and patents from India, extension of SEZ deduction, increased focus on digital initiatives spend including rural areas are few things to mention. Though we will have to wait for more specifics, overall I think it is balanced budget. If government can emphasize on implementation of various schemes announced, it can be a real boost to our economy.”
Mr Sudhin Mathur, Director, Smartphones, Lenovo Mobiles Business Group :- “The Union Budget for FY 2016-17 is a big step in terms of aiding the common man, small entrepreneurs and companies looking to invest in India. Ease of doing business and financial sector reforms being two of the Nine pillars that the Government will look towards to transform India, is a welcome move. In addition, the rationalisation of custom duties and excise duties for raw materials, manufacturing for the IT and Hardware sector apart from various sectors to boost the Government’s ‘Make In India’ sector are definitely going to boost the manufacturing sector and lower costs for firms looking to do business in India.”
Mr Sanjay Joshi Country Manager India & Sub Continent at Edimax Technology :- “2016-17 Budget is a very positive and well-balanced budget. We appreciate the finance minister for covering wide topics and addressing actions in agriculture & social sector and definitely for tax simplification. As expected, Budget 2016-17 supported start-ups and hence vast job creation. Budget’s right focus on rural and infrastructure sector will drive total economic growth. Totally, this is a well-rounded budget which helps Indian economy and growth”
Mr Sanjay Sehgal – V.P. SMB, TP-LINK India :- “I feel the budget announced on 29th Feb is in the right direction and will benefit overall economy in long run. While there has been focus on providing infrastructure to rural areas in India there also has been focus on expanding the reach for internet connectivity. As the impetus is to Make in India I feel there should have been more support by giving exemptions from BCD, CVD and SAD while importing parts, components and accessories required for manufacturing of IT Hardware such as desktop PC and notebook PC. We are satisfied to a certain extent with this budget, but our expectation was with respect to passage of GST bill which did not happen. And while the idea to work towards a Digital India the budget could have spelt out more steps for the same.”
