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Budget Reaction

This budget signifies correcting and working towards some basic priorities in terms of providing more power and support to our internal growth engine. The government has shown a clear intent on revitalizing agriculture, infrastructure, skill development and higher education sectors. This bodes well for creating a highly skilled labour force to drive the ‘Make in India’ mission in the country.The deployment of Massive Open Online Courses to promote Entrepreneurship Education and Training will help Indian youth connect with mentors and credit markets. It is an encouraging move aimed at promoting entrepreneurial spirit, especially among youth from rural areas.Amendments in the Companies Act and the ‘Stand up India’ scheme will boost the entrepreneurial ecosystem. Most importantly, the government has indeed offered unique opportunities to Start-ups, categorizing them as critical partners to the ‘Make in India’ programme. The proposed 100% tax deduction for new startups for the first 3 years, along with the speedy registration mechanism is quite noteworthy.

- Bhavin Turakhia – CEO and Cofounder, Directi .

The Government has tried to keep a healthy balance between inclusive growth and fiscal consolidation amidst global volatility and additional burden on account of the 7th pay commission, OROP. With an important focus on digitation, the government has shown good intent in keeping up the momentum of the Make In India and Digital India Mission. The government has shifted its focus from large cities to rural areas showing a clear intent to uplift those who belong to the bottom of the pyramid, especially the agricultural sector and focus on creating skilled labor.The effort to incentivize the Make In India program by way of domestic value adding in the Electronics Manufacturing Systems segment is a step in the positive direction as is the removing of custom duties. This augurs well for us as majority of the spending in our industry is on imported ESDM Electronic System Design & Manufacturing items. From a taxation standpoint, lowering of Corporate IT Tax for companies not exceeding Rs. 5 crore turnover to 25% plus surcharge is a positive move as it offers incentives to SMEs and SMBs in the country to focus on their growth. Another proposal that will benefit the country and stimulate start-ups on the growth trajectory is the amendments to the taxation for new manufacturing companies incorporated after is 1ST March 2016 as they will now have the option to be taxed at 25% plus surcharge and cess provided they do not claim profit linked to investment.

- Sunil Khanna, President and Managing Director of Emerson Network Power India.

Today’s announcement of Digital Literacy Mission Scheme in rural areas is a key stepping stone to achieve next level of human capital transformation. India is going through a massive transformation with Smart Cities, Make in India and Digital India initiatives that will have far reaching impact in the growth of urban and rural India. Technology is not only the backbone for these initiatives but also a critical stakeholder for the success and sustainability of these programs. We welcome the government's initiative as this will help in building digital infrastructure from the ground up that will help India grow much faster and better to enable economic growth. Dell being a global leader in ICT Technology and end user computing, we consider this as a good opportunity to work with both the government and private sector and be an active player in this journey. We are committed to support these initiatives by providing the next generation of technology solutions and being the digital architects for such programs

- Ravinder P Singh, Director – Solutions Strategy & Business Development, IoT, Smart Cities & Digitization, Dell India.

The thrust on Agriculture and Rural along with rural electrification and Digital literacy is well-founded since it has scope for absorbing investments and importantly yielding multiplier benefits. Keeping the fiscal deficit target intact sends a reassuring message to the international community on the Govt’s rectitude for prudence in managing the economy. One did expect some good income tax relief for the salaried class; that’s been a letdown. And on IT hardware like PCs, the focus on enabling manufacturing, while encouraging, falls short of its scope by excluding PC products and limiting it to rather insignificant things like batteries and adaptors.

- S. Rajendran, CMO, ACER India.

The budget presented by the Finance Minister is well-balanced. Particularly with respect to the global economy this last year, it’s commendable that the fiscal deficit is maintained at 3.5%. It’s heartening to see the impetus this budget intends to provide to the rural economy and the importance given to social security. The budget has been in alignment with the government’s vision of making the environment for business much more conducive and encouraging the rising entrepreneurial spirit amongst the Indian people.Initiatives like Smart Cities, Make in India and Digital India have already opened up hordes of opportunities for Persistent and other companies, and this budget carries forward the government’s vision of using technology to help the country continue on its growth trajectory. Initiatives like the launch of a new Digital Literacy Mission Scheme to cover around 6 crore additional households within the next 3 years to spread digital literacy in rural India will truly help to bring the Digital India mission at grassroots level.I’m confident that this budget will help the country continue its ascendency which will better the lives of citizens.

- Mritunjay Singh, COO and Executive Director, Persistent Systems.

The large budget outlay for infrastructure segment, smart cities, Digital India, education, healthcare, citizen service projects, insurance and Skill India will give boost to modernisation programmes. This will create a spinoff effect on an enterprise’s IT spend too. Besides, bank recapitalisation will help in improving the health of banks, and thereby allow them to finance old as well as new-age ventures.

- Ramesh Mamgain, Area VP – Commvault.

The Budget is not just a collection of numbers, but an expression of our values and aspirations. Union Budget 2016-17 is a very well thought out budget, I am happy to see the focus on infrastructure development, which will further give a boost to our domain. Moreover, Honorable Finance Minister mentioned Public Transport needs in his speech, which is a very encouraging sign for us. We are looking forward to benefit from Start-Ups programs and will try our level best to contribute to Indian growth story. Overall satisfied with the Budget; but will look forward to its implementation.

- Vineet Yadav, Co-Founder of Rideji (India's Personal Time-Saver App).

We are happy that the budget establishes a strong emphasis on technology in almost all the development areas highlighted by the Finance Minister. Technology has been recognized as an important enabler across initiatives ranging from agriculture to skill development to PDS to public procurement. Also, the announcements on the Rural Digital Literacy and the Digital Saksharta Abhiyan are positive strides to bolster the ‘Digital India’ vision.‘Make in India’ and ‘Digital India’ remained important items on the agenda in the Budget this year. The changes in the customs and excise duty rates on components & sub-components reaffirm the ‘Make in India’ vision of the government. This will help in building a robust component ecosystem in the country, which is very important for becoming a manufacturing hub.While the government’s focus has remained on giving an impetus to domestic manufacturing, we were hoping to see the duty differential policy being extended to PC manufacturing but could not happen. We will have to engage further with the government in this area.

- Rahul Agarwal, MD, Lenovo India.

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