Budget 2017 Reaction - by Shilpa Mahna Bhatnagar, CEO & Co-Founder, Evoxyz Technologies
Shilpa Mahna Bhatnagar, CEO & Co-Founder Evoxyz Technologies says “The Union Budget 2017 gives me a mixed feeling, certainly more on the positive side. On the positive side, there has been tax reduction on MSMEs, these concessions will also build a platform for MSMEs to embrace the company’s format, reduction of custom duties on hardware for Fintech innovation and increase in child and women healthcare fund, the only concern which advances is that whether we as startups will be able to use them. The processes to leverage these reforms are so complex that entrepreneurs find it extremely difficult to use them; hence there should be more focus now on ease of execution of these reforms for startups to flourish.”
For instance, Evoxyz working for the cause of child security can create a better and faster impact in case we get this support from the Government of India.
Budget reaction-Godrej Appliances
Quote from Mr Kamal Nandi, Business Head & EVP, Godrej Appliances on the budget:
“We believe the recently announced budget will have a positive effect on the consumer appliances segment through increased demand for such products and push towards domestic manufacturing. After the recent demonetisation move and resultant fall in demand for consumer appliances there was an urgent need to spur demand and revive the segment. Lower tax rates for individuals within 2.5 – 5 lakh income segment and rebate for others should give a fillip to consumer spending and demand for consumer appliances.
Additionally, the government’s move to tweak customs and central excise duty structure to promote its flagship ‘Make in India’ scheme will benefit domestic manufacturers like us, thereby reducing reliance on import of such products. The increased focus on boosting agricultural income as well as a greater thrust on rural economy is welcome as it will help in rural penetration. Infrastructure focus will also help in furthering adoption of home appliances”
Budget 2017 Reaction from Evoxyz Technologies,Godrej Appliances,Association of Hospitals,IPE Global, Shapoorji Paloonji Real Estate, Mahindra Logistics, betterU, Hester Biosciences
Post-Budget expectation quote from Dr. P. M. Bhujang, President, Association of Hospitals
“Healthcare is one of the major sectors which requires additional focus in India as public health spending in India is one of the lowest in the world, an ironic reality is that public health systems are unable to utilize the meagre budgets allocated to them. Few points highlighted in the Union Budget 2017 for the healthcare sector like eradication of major disease like Tuberculosis, Measles, Kala Azar, and Filariasis is a major necessity. Also the provision of 1.5 lakhs health centres and health sub-centres to be created to improvise the quality service will surely help in the betterment of the healthcare sector if implemented and funded properly, says” , Dr. P. M. Bhujang, President, Association of Hospitals "
“Apart from the budget being helpful for the rural development; few concerns which should have had more focus were the infrastructure required in hospitals. If you check the statics there are hardly beds available for the number of patients in the hospitals. The number of nurses and doctors are also very less in private as well as government hospitals. The decision in opening new AIIMS in Jharkhand and Gujarat is a good step but only restricting to these two cannot match the number of doctors and nurses required in India”, he further added
Reaction of IPE Global, an internal development consulting group, on affordable housing being granted infrastructure status in the Union Budget 2017-18.
Additional refinance of Rs 20,000 crore from National Housing Bank will boost the current housing supply and stock, in addition to its promotion into Infrastructure sector, this in turn will lower housing interest rates resulting from increased liquidity in the banking sector, developers getting preferential and lower borrowing rates from banks, long term financing reducing the cost of construction for developers allowing them to pass the benefits to end consumers. This in turn would allow better access to institutional financing, higher limit on external borrowings, attracting investments assuring sustained growth in affordable housing arena, making it the core driving factor for our Country’s growth. As an icing to the cake, is the new credit-linked subsidy scheme for middle income group with allocation of Rs 1,000 crore in the Union Budget for 2017-18, would make a large section happy and have a “Apna Ghar”. – Anil Bansal, Director - Urban Infrastructure, IPE Global
Mr. Venkatesh Gopalakrishnan, President - Business Development & Chief Investment Officer – Shapoorji Paloonji Real Estate
Mr. Venkatesh Gopalakrishnan, President - Business Development & Chief Investment Officer – Shapoorji Paloonji Real Estate, on the announcement of the Union Budget 2017.
“The Government believes that the impact of demonetization is transient. The increased liquidity in the banking system and the increase in the net of taxable income for people and corporates, has resulted in the Government stipulating an aggressive fiscal deficit of 3.2% in 2017-18 despite the total increase in expenditure especially in the infrastructure and defence sectors where the outlay has been increased by 10% over the last year. In case the Government is able to follow through on the remonetisation inter-alias as per the plan, it will definitely impact the economic growth positively.
Coming to the Real Estate sector, the moves including the reduction in the tenure of long-term capital gain tax from 3 years to 2 years, rationalization of capital gains JDA agreement, infrastructure status to the affordable housing segment and most importantly the SOPS inter-alia, the increase of the size of the affordable housing unit and enhancing the universe for the 60sqm stipulation in the segment, are all positive steps for the real estate sector and will definitely help in giving the much needed push to the affordable housing segment.”
Quote from Mr Pirojshaw Sarkari, CEO, Mahindra Logistics on budget:
“The recent budget has been extremely positive for logistics sector since it puts huge emphasis on infrastructure segments such as highways, railways, ports and aviation. Any expansion or enhancement of transportation infrastructure or even increase in consumption directly benefits the logistics sector.
The construction of PMGSY roads will be accelerated to 133 km per day in 2016-17, against an average of 73 km during 2011-2014. This will ensure expansion of logistics activities to the under penetrated rural areas nationwide.
For transportation sector as a whole, including rail, roads, shipping - a massive provision of Rs. 2,41,387 crore has been made in 2017-18. Better transportation infrastructure means lower logistics costs thereby making domestic manufacturing activity competitive in an increasingly competitive global marketplace.
The restructured scheme focused on export infrastructure, namely, Trade Infrastructure for Export Scheme (TIES) will provide further growth opportunities to the logistics sector.
To promote its flagship ‘Make in India’ scheme, the government has tweaked customs and central excise duty structure. We expect this move to benefit domestic manufacturing activity and lead to enhanced demand for logistics activity to support increased production and supply-chain needs.
The announcement of GST Council finalising its recommendations on almost all issues and timely preparation of IT system needs to be welcomed. In an endeavour to create awareness about the new GST led taxation system, we support the government’s move to reach-out to trade and industry.”
Post Union Budget Quote | betterU- Edutech Startup
post budget quote by Mr. Pankaj Raina, COO, betterU.
“The Finance minister’s opening remarks on the need for quality education to encourage the youth garners praise. We welcome the steps taken by the government to promote digital learning as part of the Union Budget 2017-18. The focus on educational reforms by introducing better measurement system of the outcomes, skill development to push job creation and provide vocational training for livelihood programme are all bold moves in the right direction. The Government’s endeavour to introduce 350 virtual courses on the SWAYAM platform will spur learning opportunities for the youth. In line with skill development, we also appreciate the initiation of the SANKALP program which will give a strategic boost by training over 1 crore youth. We strongly believe these measures will further uplift India’s education sector.”
Comments on Budget 2017 from Mr. Rajiv Gandhi, CEO & MD, Hester Biosciences Ltd
Mr. Rajiv Gandhi, CEO & MD, Hester Biosciences Ltd
Government’s objective is long term growth and it is trying to rationalize all issues for a good sustainable growth in years to come. High allocation to rural sector has set the right tone. Giving relief to smaller businesses and taxpayer was much needed to widen the tax net as well as incentivize businesses to come into the main stream of financial legitimacy. Initiatives on women empowerment, rural electrification, housing for all, more roads for villages and focus on employment generation will definitely strengthen the rural economy.