Advertising & media stand to gain as economy picks up: Agencies react to Budget 2021

The Union Budget for 2021-22, presented by Finance Minister Nirmala Sitharaman in Parliament yesterday (February 1, 2021), is being seen as a growth-oriented Budget by the industry. The industry has hailed the various provisions in the Budget to give a boost to MSMEs, start-ups and the massive push for Digital and Atmanirbhar India. 

Anurag Bansal, Chief Operating Officer & Chief Financial Officer, DDB Mudra Group:

“The biggest good news coming out from this Union Budget is no negative tax on corporates as well as individuals and no COVID cess. With the big push on infrastructure and healthcare spending, corporates in these sectors stand to gain. Raising resources without increasing taxes, powered by massive borrowings are the key highlights of this Union Budget. It will enable the Government to invest in growth impulses leading to structural changes in the economy. This will help in capital formation in real assets and demand generation. The time limit to reopen tax assessments is reduced to 3 years from 6 years, coupled with ease of tax compliance, which will simplify business challenges.

Overall, Indian economy’s recovery from the impact of Covid-19 has been much better than expected, leading to a spectacular bounce back in consumer sentiments. Advertising and media stand to gain as the economy picks up momentum and clients resume their spends. And with the focus of Budget 2021 on capital expenditure and nation building, it augurs well for consumers, markets and businesses.”

Ajay Verma, Managing Partner and Co-Founder, Enormous Brands:

“A Budget with good intentions – But unlike earlier decisions, hope it is thought through. For example: Scrapping of personal vehicle in 15 years with no mention of the vintage vehicles and its fate. Or extending the start-up tax holiday, without looking at their rich and international investors/ owners. Or increasing the trade deficit but letting go scot free the International (Social) media platforms like FB and Google who are garnering huge revenues but not paying the right taxes. It is important that this Govt understands, evaluates and implements it good intention in a thought through manner. Initiatives like GST and de-monetisation had good intentions, but its poor implementation and a non-thought through approach has led us where we are today.”

Chetan Asher, Co-founder & CEO, Tonic Worldwide:

“The Budget as expected is focused on reviving the economy. Increased spends in infra projects and focus on health, it delivers on both. Focus on promoting digital payments and not losing the momentum will only grow the digital ecosystem. Tax holiday for start ups will give impetus to innovation.”

Jalak Rawal, Partner & COO at Monk Entertainment:

"Fair budget after a bad year, which is opening doors for the startup industry to grow faster, supporting sunrise sectors like solar and drones. Making honest income taxpayers life easier with reduced compliance giving a healing touch. Some good capital raising methods like FDI in insurance raised from 49% to 74% with precautions. Launching IPO for LIC. Support for MSME by increasing customs duty. Feel good factor for senior citizens post 75 years as they receive an exemption from filing returns. Finally, some digital adoption for the first digital census in history receiving an allocation of 3700 cr this year. Overall budget seemed standard and well thought out. We should be able to see more streamlined processes, benefits to the end citizen and development around the nation in the long run with major infrastructure and metro projects. This budget seems like a budding plant, the fruits are to be cherished over years with the right sunlight and watering."

Ashwini Deshpande- Founder, Elephant Design

Design in India is fundamental to Make in India as well as Atmanirbhar India. With government putting emphasis on Atmanirbhar Bharat, and also the budgets and schemes announced for improving health & agriculture sectors, it seems like the best time for design and development in India. Many more opportunities will emerge to design original products and services in India for India. It is now up to the corporate leaders to put faith and money into developing indigenous solutions relevant to Indian needs and make them in India. Unless that happens, design consulting & profession will remain marginalized with no specific ministry or Ayog supporting its growth.