Outlook for Union Budget 2016-17

As the budget date is approaching, everyone is busy speculating the new reforms and changes it will bring with it. Recently, the Indian government rolled out initiatives like Start up India and Digital India.

AskmeBazaar feels that these are steps in the right direction as such initiatives will help to create a favorable environment for budding entrepreneurs in the country. They are hopeful that such campaigns will aid the economic growth and increase in overall consumption. Also, it is the hope that the government will continue giving thrust to various reforms in this sector in the forthcoming Union Budget 2016-17.

The budget will be looked upon keenly by startups, Micro, Small and Medium Enterprises and the ecommerce sector in particular which is presently on a growth trajectory and expected to grow the fastest globally in the next 3 years as per a latest Morgan Stanley report.

Mr. Mohit Dubey, Co founder & CEO, Carwale says, "The budget is one of the most important tools available to thegovernment to address the current debate on vehicular pollution. In this week’s Auto Expo, car manufacturers have put their best foot forward in terms of offering hybrids and advanced technology to dramatically increase fuel efficiency. Now it is for the government to do their bit by making these cars highly attractive by offering incentives and rebates. We are also hoping that they will address fuel policy - by moving us to global quality standards as soon as possible and using pricing to encourage lesser polluting fuels, rather than a partial ban on diesel-engined vehicles as is currently imposed.”

 
"Budget 2016 is highly awaited where everyone is expecting policy level changes to promote growth. At the juncture where global growth is not so promising, everyone is eying on Indian Growth story and we have to leverage this situation. Government has started great initiatives like “Make in India”, “Startup India Initiative”, the budget has to support at monitory, infrastructure and policy level to realise these dreams. Some of the expectation we have is further easy FDI investment norms, licensing and startup support (tax, documentation, licensing, legal). Entrepreneurs should feel protected and supported on ground level to make actual difference," adds Mr. Vipin Pathak, Co Founder & CEO, Care24.
 
Mr. Manu Agarwal, Founder & CEO, Naaptol believes, “This budget should have some favorable reforms for the emerging industries like e-commerce. There is still a lot of ambiguity with respect to the taxation laws for marketplace companies like ours. I expect this budget to give some clarity on it. Additionally there should be more plans of development of infrastructure. Our industry rely heavily on imports and having good infrastructure and logistic muscle like larger ports and transit systems will help us to get goods faster for our customers.”
 
Mr. Hitesh Doshi, CMD, Waaree Energies says that given the rising demand and the fluctuating supply of coal and petroleum products,the Government of India has underlined the vital role it expects the solar industry to play in the country’s continued growth. He adds, "Boosted by this vote of confidence, the industry expects a clear business opportunity of at least $70 billion in the next five years through sale of solar equipment. Keeping this in mind, there are certain expectations from the upcoming budget that can help the Indian solar industry realize this huge potential. On the manufacturing front, there must be a push for producing a major portion of the industry’s material requirements within the country.Currently, a major chunk of the Indian solar industry’s requirements is being fulfilled by China owing to the difference in pricing, manufacturing capabilities and insurances.The Government must make similar incentives available to the indigenous manufacturers or implement anti-dumping policies along the lines of USA and Europe. If these measures are put into effect, we envisage a target of at least 60% material production taking place within India, which amounts close to $42 million.This ties in well with the Prime Minister’s ambitious ‘Make in India’ project and will serve to drive the national economy and GDP. Moreover, by decreasing the dependence on imported goods, it will serve to improve the country’s balance of trade quotient.Insurance companies need to step up to the plate and deliver viable schemes for insuring solar panels, while there must also be a dedicated effort made to position India as the global R&D hub for solar power.To achieve this, at least 3 percent of the potential investment made into the solar industry will need to be funneled through for R&D and technology. These measures will revitalize the manufacturing sector, and will encourage it to meet the equipment demands made by the developers. The development segment, on the other hand, is also in need of an urgent revamp. This can be achieved by policy reforms that are aimed at reinvigorating the sector. One such policy reform that comes to mind is that of depreciation benefits. Currently, most of the projects and tenders relating to the solar industry see no differentiation between the developers who avail the depreciation benefit and those that do not.Making depreciation trad able can address this gap and will lead to more players playing an active role in the solar development sector. This measure will directly result in better competition and improved service delivery".
 
Amit Mishra, CEO and Co-founder, Quifers states, "Having recently launched the ‘Start Up India, Stand Up India’ initiative, the upcoming Union Budget is a very good platform for the government to come good on all the promises made to the entrepreneurial community. We are expecting clear and transparent implementation of measures that were outlined during the ‘Start Up India, Stand Up India’ speech in order to give the country’s start-up landscape a big boost. With tax on capital deducted at source, start-ups often face a lot of issues with capital locking as well as collecting tax certificates. This, in my opinion, needs to be streamlined in order to facilitate a faster growth for early-stage start-ups. One possible way of doing it is to give first year start-ups the benefit of tax exemption at source. Moreover, decreasing the Service Tax by a certain percentage in the first year of their operations will also be extremely beneficial for ventures, as will increasing the service tax applicability ceiling. This will help them in offering better value services and will trigger a much faster growth for start-ups. Indian start-ups also often face a lot of hurdles in securing investment, particularly during the early phases of their growth. This can be remedied by giving out tax benefits and incentives for early stage investors. This will help establish a much larger, holistic seed and early stage investment ecosystem within the country and will enable Indian start-ups in achieving scale and success."

 

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