Budget 2021 gives a message of a more self-reliant, digitally-led India: Corporates

The Union Budget for 2021-22, presented by Finance Minister Nirmala Sitharaman in Parliament earlier today, 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.

Nikhil Rungta, Country Manager, India, Verizon Media:

“This is a ‘get well’ Budget with an expansionary outlook and focused on growth. Given the times, it might not be a radical Budget, but it is practical and thoughtful, which will propel consumption and growth of business. This Budget has also rightly signalled the need for greater inclusion in India’s workforce. Women being allowed to work in all sectors and in night-shifts with adequate protection, and social security benefits extended to gig workers will provide an impetus for women to step up their contribution towards Aatmanirbhar Bharat.”

Dinesh Chhabra, CEO, Usha International:

“We welcome this Budget, India’s first post-COVID-19 Budget, which is expansionary and focuses on the nation’s growth, bringing a positive sentiment to the overall economy. Strengthening the healthcare facility of the country is the need of the hour and it is heartening to see the Government’s commitment to the welfare of the society. The Government’s announcement on providing financial incentive to promote digital mode of payment will further boost the ‘Digital Revolution’ in India and is tailored to further accelerate growth rate. Furthermore, the exemption duty on steel and copper scrap, up to March 2022, will also help control the rise in price of consumer goods that will translate into healthy sales in the coming summer season. Giving a boost to agriculture and rural on the one hand and the MSME sector on the other will go a long way in strengthening the India we want to build. We are confident that the Budget allocation for FY2021-22 will provide the much needed thrust to the V-shaped growth trajectory of Indian economy. This Budget clearly indicates the Government’s intent on rebuilding a new India.”

Kunal Lakhara, VP - Finance and Operations, Pocket Aces:

“The Union Budget 2021-2022’s revised fiscal deficit estimate for FY21, which is pegged at 9.5% of the GDP, seems promising, and has taken on a realistic approach that is focused on spends which are much needed to revive the economy. The tax holiday given to start-ups for an additional one year brings relief to enabling the sector to sustain and grow, as we recover from the pandemic. Furthermore, the move to encourage one-person companies without any restrictions is a step in the right direction. This will go a long way in encouraging more people to come forward to set up innovative businesses that solve the challenge of the day, and grow the high-potential start-up ecosystem within the country.”

Satish Kumar Agarwal, Chairman and Managing Director, Kamdhenu Group:

“We are quite positive on the future with the government very bullish and focused on building infrastructure in the country in various areas – agriculture, railways,  health, roads, housing and affordable housing ,  etc. So overall there is expected to be a lot of infrastructure building activities in the coming future and all that would need our products including paints.  The recovery of our economy will be construction and capex led and we are well prepared to play our role. We are back to our pre covid manufacturing capacity and ready to take on the new opportunities that may come our way and contribute our best to the mission of a $5 trillion economy and nation building”.

Rohan Bhansali, Co-Founder & Director, Gozoop:

“While I would not term it as a ‘Never Seen Before Budget’, the good news is that there were no negative surprises for the corporates, start-up as well as Digital India. The FM further reaffirmed the Government’s commitment towards Digital India by announcing India’s first Digital census. While there were a lot of encouraging macro narratives of disinvestments, infrastructure, NCLT strengthening, etc., perhaps the biggest takeaway was that the Budget speech was delivered by the Finance Minister on a ‘Made in India’ tablet. The medium itself is a message of a more confident, self-reliant and digitally-led India.

Siddharth Devnani, Co-founder, Director, SoCheers:

“Overall, the correct seeding strategy seems to be in place for a growing economy. I applaud the FM for making progressive moves for the benefit of the overall workforce. There are three points that I believe will have a direct impact on our industry as well.

Social security benefits to be extended to gig and platform workers for the first time. Minimum wages will apply to all categories of workers: FM

Customers have been beneficiaries of the digital economy along with the food delivery and app-cab start-ups and their investors. This move in the Budget will ensure the real workforce behind this also benefits from the exponential growth of these industries. Looking forward to the socio-economic mobility of this massive workforce. This will now be at par with the most progressive legislations in the world.

Digital census budget allocated Rs 3,700 crore

As an advertiser, the data which will be made public after the census would be instrumental in understanding the demographics of the country. The data mining capabilities have evolved manifold since the last census. This has the potential to lead to a lot of new insights.

Tax benefits for start-ups

The announcements under this sector are promising. Though one will have to wait for the details before making a conclusive opinion about it. But if all of them are implemented, they will definitely be extremely helpful for start-ups – the future of the country and MSMEs – the backbone of the economy.”

Aditya Anand, Chief Revenue Officer, Viral Fission:

“The institutional efforts to reinstill the consumer’s faith and increase consumer spending in the post-COVID-19 world are commendable. The year 2020 saw a spike in the ad-spends on digital mediums, while other mediums saw a decline and in my opinion, 2021 will be the year where brands will invest heavily in digital advertising due to its effectiveness and mass reach.

Efforts by the Government to create a digital first mind-set for the youth across the country will shape a new-generation of consumers who are digital-natives, which will further give birth to start-ups offering innovative marketing methods to create 360-degree branded-experiences bridging offline and online advertising seamlessly. The most seamless way to tap into the fastest growing digital population is to use the strong sense of community. What the government is doing is creating one of the world’s largest digital communities waiting to be tapped.”

Monica Malhotra Kandhari, MD, MBD group:

“Finance Minister Nirmala Sitharaman, while presenting the Union Budget 2021-22, announced that over 15,000 schools are to be qualitatively strengthened to include all components of the National Education Policy. This is indeed a commendable step by the government for the effective Implementation of NEP as these schools will mentor and work as a model for the policy implementation across the country. The announcement of setting up of 100 new Sainik schools in collaboration with NGOs and private organizations, setting up of Higher Education Commission for better synergy in the higher education institutes are welcome initiatives by the govt to further strengthen the education sector in India. In addition, the proposed 750 Ekalavya residential schools in the Tribal Areas, Fund allocated for Skill Development for students from Diploma in Engineering and Research & Development will help in creating a large pool of skilled manpower. The Union Budget has also proposed National Digital Educational Architecture (NDEAR) which will support teaching and learning activities, Simultaneously, the National Initiative for School Heads and Teachers for Holistic Advancement (NISTHA) that will train 56 lakh school teachers in 2021-22 digitally is a promising move”.

Neelesh Talathi, Chief Financial Officer, Pepperfry:

“The honourable Finance Minister has unequivocally focused the economic direction of our country to deliver double digit real GDP growth in FY22. The unprecedented allocation at Rs 1.18 Lakh crore behind development of road infrastructure has a built in multiplier to boost GDP growth in FY22 and beyond. A strong economy is always built on the shoulders of a strong workforce. This Budget seeks to make every Indian Aatmanirbhar as is reflected in the Rs 2.23 lakh crore allocation to the Healthcare sector. However, the boldest aspect of the Union Budget 2021 is the confidence to manage a higher fiscal deficit at 6.8%, but not impose any additional taxes on corporates or citizens. The Budget has all the ingredients to set India firmly on the path to being a $5 trillion economy.”

Apoorv Jain, CEO, and Co-Founder, Express Stores:

“The Budget gave major emphasis to healthcare and infra sectors. Besides, a host of substantial announcements were made on the divestment front, including the coming IPO of Life Insurance Corporation. Incentivisation to one person company by removing capital limits, free conversions and overhauling residency limits definitely will boost the start-up ecosystem in India. We welcome the move to help India’s start-ups beat pandemic blues, the tax holiday extended by one more year to March 2022 during Budget presentations today. The capital gains exemption given to start-ups was also extended by a year more.”

Rajan Navani, Vice Chairman & Managing Director, JetSynthesys:

“I’m happy to see the Union Budget 2021 is a forward-looking one, with massive spend commitment by the Government across many sectors, combined with large divestment and monetisation, along with the privatisation of two public banks and one insurance company. This is a great trajectory for banking in India. Also, the increase in FDI in insurance to 74% with management control will help in attracting FDI from the world, further boosting the economy. I’m particularly excited about the Government’s commitment to set aside an outlay of Rs 50,000 crore for the National Research Foundation, the setting up of a new Fintech hub, and an allocation to incentivise digital payments.

Also, as we complete 75 years of independence, the move to exempt senior citizens over 75 years from filing tax returns if they are only on pension is a great tribute to their contribution to India. The Budget also had a number of bold initiatives to simplify tax processes for businesses and honest tax-payers. The extension of the tax holiday and exemption of capital gains will also enable businesses and start-ups to focus on growing their business. Most importantly, the proposed use of data analytics, Artificial Intelligence and Machine Learning, optimising the Ministry of Corporate Affairs and tax portals, is indicative of the New India of 2022. I hope this forward-looking Budget will help revive India’s economy, propelling it further towards a digitally empowered tomorrow.”

Kamal Johari, Managing Director, Nobel Hygiene:

“The tax rate has not been changed, neither has a COVID surcharge been imposed – both of which come as a pleasant surprise and will reflect positively in the stock market movement. The Government’s decision to focus on infrastructure spending is very good for both overall growth and the economy. We also appreciate the Faceless Income Tax tribunal and the Government’s step to disinvest from two PSU Banks. In this Annual Budget, the Government has also provided Rs 15,700 crore to the MSME sector – over twice the amount from last year – which we expect will further fuel growth MSME growth.”

Sameet Chavan, Chief Analyst - Technical and Derivatives, Angel Broking:

“Market has given complete thumbs up to this mega event and has recovered fair bit of ground. Banking has been the major charioteer in this move. For Nifty 14200 is the level to watch on a closing basis. If ir manages to surpass, we may see it heading higher. However, a close below 14000 will not bode well for the bulls.”