2020 Budget reaction from experts
Naveen Chava, CEO, IDSign reacted, "With the union budget themed around three strong aspects- Aspirational India, Economic Development and Caring Society, the Government of India has reassured its promise in promoting the Indian startup ecosystem for a vibrant and inclusive economy. The proposals aimed at bringing fundamental structural reforms and digital governance such as a provision to set up investment advisory online cell to help young entrepreneurs with faster clearance and launch of seed fund to support early-stage startups come as a major booster for the sector. The decision to relax much-awaited Esops is a laudable move which will now help startups to attract new talent pool. Additionally, the allocation of 3000 crore for development of skill India programme testifies the government's urge to embrace the proliferation of future-readying technologies- Analytics, IoT, AI Quantum Computing and so on among rural youths to make them part of digital India. Also, the government's step to mandate aadhaar-based verification on indirect taxes would certainly widen lucrative business opportunities for companies like us operating in the area of digital signing and verification management."
“Given the slowing economy, the finance minister has tried to stimulate consumption by reducing tax rates esp. to the persons in the lower tax bracket. The continued focus on rural areas and infrastructure is welcome. The government has been reasonable in forecasting the nominal GDP and the growth in tax rates.”The views expressed and information herein are independent views of the Fund Manager and for informative purpose only and under no circumstances should be construed as an opinion or Investment advice. The information contained herein is not intended to be an offer to seek solicitation for purchase or sale of any financial product or instrument. Investors are requested to consult their investment advisor and arrive at an informed investment decision before making any investments. Mutual Fund investments are subject to market risks, read all scheme related documents carefully. Rajat Jain, CIO, Principal Mutual Fund on the Union Budget Please also find attached Mr. Jain’s image.Speaking about the budget, Mr. Shailesh Gupta, CEO YOLO Travel Tech Pvt Ltd"This union budget has some well thought out initiatives such as reduce income tax for individuals, emphasis on connecting India, saying No to pollution et al. The union budget's emphasis on making transport sector more conducive by proposing INR 1.7 lakh crore for improving transport infrastructure and provisioning INR 2,500 crores to develop tourism industry is a welcome move. Strategic initiatives such as the development of Delhi-Mumbai expressway and 2 other corridors by 2023 will increase trade and commercial activities and provide livelihood to hundreds of thousands of families. It is a big boost to transport economy."Speaking about the budget, Mr. Shobhit Mathur, Dean at Rashtram School of Public Leadership"The announcement in the Union Budget of almost 1 Lakh Crore for the education sector is most welcome. Supporting research and innovation and increasing access to high quality higher education should be the priorities. The government should use the funds to set up a National Research Foundation (as suggested in the Draft New Education Policy) focussed exclusively on improving research and innovation. Additionally, to make higher education accessible, the government should subsidize student loans (rather than fund institutions). This will reduce the burden on households, promote competition for quality as students are free to choose high-quality institutions for their education." Sharing budget reactions from Schneider Electric India -“The government’s intent to rollout a policy to enable private sector to build data center parks throughout the country is a welcome move. We believe this is in view of government’s efforts to push data localization as data will be one of the key drivers of economy. Localized data centers which can be accessed and controlled from a centralized system will significantly improve data privacy and security allowing free flow of data within borders. We at Schneider Electric shall be happy to partner with the government in furthering this initiative.”- Venkatraman Swaminathan, Vice President & Country General Manager at Schneider Electric IT Business India.“As per Union Budget 2020, the allocation of INR 6,000 Crores for BharatNet to digitize 1 lakh gram panchayats is a step towards making India digitally more connected. These new initiatives will help improve telecom and internet services in rural and remote regions of India. Digital India initiative will see a new wave as citizens in deeper pockets will gain further access to services like e-governance, e-health, e-education, and e-banking amongst others. In addition, the announcement of allowing private sector set up data center parks across the country will help in data localization and protection. We welcome the government’s decision in announcing additional Smart cities in building a robust digital infrastructure. This also aligns with the Internet of Things (IoT) taking over the lives as automation has made lives simpler and buildings smarter. Schneider Electric is committed towards working hand in hand with the government of India in this digital transformation journey.”
- Sanjay Sudhakaran, Vice President - Digital Energy, Greater India Zone at Schneider Electric.“The Union Budget provides a major boost to the interests of broadband services enablers and aligned stakeholders as one of the major takeaways that evidently emerged was the fact of connectivity being at the core of all key pursuits planned by the government. Towards this, initiatives announced such as providing push to smart metering, setting up five new smart cities, establishing new data centres across the country and more importantly the allocation of Rs.6000 crore towards BharatNet to provide connectivity to 100,000 gram panchayats within this year itself, augers well for the telecom industry.
“We welcome government’s focus on providing easier working capital to MSMEs. Enabling easier access to working capital through a digital framework can be a great boost for MSMEs. This can emerge as simple on-tap financing for B2B Ecosystems. Amending the Factoring Regulations Act to allow NBFCs to bid on the TReDS platforms can help widen the coverage of Corporate supply chains benefitting from these platforms. Specific sectors that could see growth revival include electronics manufacturing, healthcare and medical devices, and export driven sectors like pharma, auto-components, marine & fisheries, etc. We will continue to work closely with all institutions and stakeholders to take the fruits of these measures to the last mile MSMEs.”
R N Iyer, Founder and CEO, Vayana Network, Pune based Trade Finance Platform.
“Rajiv Kapoor, Vice President, India & SAARC, Cambium Networks" The Government's attempt to boost consumption by cutting the Income Tax rates could have a knock-on effect on the automotive sector. The cut in Income Tax rates could leave more money in the hands of people, encouraging them to spend. Also, the Finance Minister's attempt at offering some support to the auto component manufacturers could give an impetus to the indigenous manufacture of auto components, but that would take a while. We had expected this year’s Budget to propel the auto industry to a higher orbit and help it recover from the lows it has touched last year. We were also hoping for a much-required push to EVs and greater clarity on the EV plans with a longer-term perspective as an industry." said Mr. Nishant Arya, Executive Director, JBM Group. Nishant Arya, Executive Director, JBM GroupEducation and SkillingMr Subrat Mohanty, Group President, Manipal Education and Medical Group (MEMG)The Union Budget 2020 has boosted the education sector with the allocation of INR 99,300 Cr. We, at the Manipal Group, are heartened by the government's investment (of Rs 3000 Cr) in the skill development sector. We believe it will bring focus on some new age skills that will be invaluable in training the world's largest working-age population.Another progressive change we look forward to is that degrees can be taken online and will be offered by the Top 100 NIRF ranked institutes. As a NIRF Top 10 institute with strong tech credentials, we believe this change will have a significant impact in the coming years. The proposal by the FM to attract external commercial borrowing and FDI into the education sector would boost funding and thus infrastructure in the educational institutions in the country. Also, the announcement that the government will hold an IND-SAT exam for Asian and African students for scholarships to ‘Study in India’ would help internationalise the Indian student community. It will also help build India's reputation as a leading global education destination.Start-upKushal Agarwal, Co-Founder & Chief Strategy Officer, XOXODAYThe Department for Promotion of Industry and Internal Trade (DPIIT) has suggested several measures to the finance ministry for start-ups in the Budget. The initiatives in Esop vesting is a big relief for employees who want to join startups and for companies to hire high-quality talent by offering esops. We also look forward to Income tax brackets improvements will further benefit with disposable cash flow for individuals and help boost spends in economy. The budget could have been better from structural reforms to boost levers for growth which is in struggle now. Education and Design TechJD Institute of Fashion Technology- Nealesh Dalal - Managing Trustee"The Union Budget 2020 has proposed aspirational changes that have the capability to turnaround the education sector. Apart from allocating considerable finance to the educational sector as a whole- INR 99,300, an intriguing aspect is the budget’s focus on skill development with an allocation of 3,000 crores. Design Technology has longed for this demeanor of development where we hope to see the youth of India and especially women choosing it as a career to sharpen their skills. We are eager to see the government’s involvement in bringing more impetus in the design sector. The budget’s focus on encouraging entrepreneurship and boosting internship prospects is another progressive reform for the youth of India and the Make in India initiative.”Education and HRAmbrish Sinha, CEO, MeritTrac ServicesThe Union budget 2020 has proposed propitious changes that have the potential to revolutionize the education sector. The budget of INR 99,300, allocated to the sector will help to improve the overall quality of education and create employment opportunities. An appreciative step of the government is the proposal to set up a national recruitment agency for the conduct of computer-based online common eligibility tests for recruitment to the non-gazetted posts. This is a step in the right direction to bring transparency, efficiency and ‘best in class’ technology-enabled solutions to the recruitment process. MeritTrac as a leader in CBT assessments welcomes this initiative and we hope to leverage this opportunity.The plan to allow degree level full-fledged online education programme by institutions ranked in the top 100 NIRF ranking would only facilitate the process of increasing employable talent. The 3000 crores budget allocated on skill development will help to produce industry-ready graduates to address employability gaps. The FM also focused on how technology like machine learning, robotics, and AI along with the number of productive age groups (15-65 years) are crossing streams in India. The Union Budget 2020 has taken care of all majority reforms and we look forward to a quick uptake in this period of the economic slowdown. The government's proposal to start a programme for urban local bodies to provide opportunities for internships to young engineers can increase the talent pool of employable people at a time when unemployment is a major cause for concern. The Finance Minister's proposal for a National Police University and National Forensic University is also a welcomed step. Education and SkillingVishwanathan Iyer, Professor – Finance Area, Associate Dean (Academics), TAPMI“Overall it is a bold pro-middle class, pro-corporate and forward-looking budget. The big message is that Wealth Creators shall be respected. Big and bold moves such as raising the threshold for Income tax as well as the abolition of DDT. Simplified GST norms, revisiting Rule of Origin requirements and also tightening of regulations relating to dumping of goods greatly benefit the MSME sector. Multiple reforms for improving the financial architecture. Partial Divestment of LIC and IDBI proposed should bring more retail participation in the market.The key thing to be kept in mind is that FM has not allowed Fiscal Deficit to spiral out of control.This should definitely boost business sentiment”Rajiv V. Shah, Professor, Chairperson-Finance Area, TAPMI“The focus on transport infrastructure development is welcome and needs to be pushed forward with even more vigour. This leads to immediate benefits such as employment, and in the long run, also helps to develop the economy through reduced transportation costs and improved connectivity. The proposal to rationalize the tax structure by giving an option to pay tax at reduced rates if deductions are not claimed can be a double-edged sword. On the one hand, it definitely leads to simplification of the return filing activity and saving manpower and energy on verification of claims of deductions. However, it can also lead to a shift in the investing and savings pattern of the taxpayer as the current investments have the added benefit of tax savings built into the returns. This could possibly be replaced by other savings options or even enhanced spending. While this could be beneficial in the short run, it could affect the post-retirement corpus building activity.”
KT Prasad, Country Sales Director, Zendesk India
"I believe the Union Budget 2020 will have a positive impact on helping further drive Indian businesses, given the current local and international market conditions. The startup sector will benefit greatly from the tax breaks, and the move to tax ESOPs on liquidation will encourage the retention of talent in the sector, poising it for continued growth on the global stage. We are happy to see the push for adopting AI and ML particularly in the healthcare sector, which will help boost access to services as well as quality of care for more people, and further infuse growth in the economy. It is also interesting to see that the government has invested Rs. 8000 crore to the National Mission on Quantum Technologies, which will ensure India remains a key global technology player. This move aligns and propels India into the future with an eye on data, communications, cybersecurity, and technology, and from Zendesk's position as a global Saas company, this is particularly encouraging.
“The budget this year has given a major boost to startup ecosystem that will ensure them to propel and grow faster. By incorporating incorporated the proposed schemes of easing the tax burden on the employees, benefits to foreign investors, tax deferments, etc. show that Startups are getting some serious attention. Furthermore, several other schemes like allocation of seed fund to support early allocation of 3,000 crore for skill development of youth empowerment will encourage the young entrepreneurs, ultimately generating new jobs in the market. On the other hand, the reduction in the Income Tax slabs is a step in the right direction as it will boost consumption in the market for an overall economic growth.”
Seema Prem, CEO, FIA Global.
Covestro welcomes the moves proposed by the Finance Minister to boost the growth of the Indian Economy by catalysing domestic manufacturing sector. Since electronics is critical to several industries, policies that promote domestic manufacturing of electronics, mobile phones and semi-conductors will have a direct impact on import reduction, and will
give a fillip to many related industries as well, while creating jobs at the same time.
Also, the government’s move to shut power plants that have high polluting emissions is an encouraging step to help India move towards building a safer environment for its future generations.
The Budget also has allocated funds towards making healthcare more accessible by increasing healthcare infrastructure spends as compared to last year. Setting up hospitals in tier 2 & tier 3 cities under PPP model is a step that will bring healthcare to the dorsteps of a large section of the population which can dramatically improve the health index of India. Additionally, medical device indegenization focus will save valuable foreign exchange, also giving our unique country an opportunity to create new and relevant technologies that are applicable in a complex environment like India.
Water and Sanitation was another key focus area in the Union Budget 2020 under ‘Aspirational India’ theme. Both water and sanitation infrastructures are essential to protect the health of India's future generations, and should be given maximum priority to ensure speedy implementation of projects.
Overall, the Budget has created a good balance between the immediate priorities as well as the future
Anand Srinivasan, MD, Covestro India
Hon’ble Finance Minister Nirmala Sitharaman in her Union Budget presentation, focused more on the infrastructure development by allocating INR 1.7 lakh crore. The government has taken many measures which will help fulfil the aspirations and vision of most of the sectors but the real estate sector has not been discussed much during the Budget. Measures on the repo rate deduction, GST rate reduction on construction materials etc. were not mentioned. Deduction on housing loans in affordable housing segment has extended by one year. The provision of tax holiday for the developers of affordable housing sector will further boost the segment. Also the concession provided to the real estate transactions will bring in more investment to the sector. The government did not announce schemes or policies to fulfil the promise of ‘’Housing for all by 2022”, within two years. Real Estate being one of the key contributors to the country’s economy, it is important to address the problems faced by the sector.
Kishore Jain, President, CREDAI Bengaluru
"The Budget 2020 by finance minister Nirmala Sitharaman claims to have provided an annual benefit of Rs 1 lakh crore on account of GST where every average household saves monthly 4% on account of reduced GST. This improves the consumption and saving for each individual.
In a bid to brand the technological sector, budget 2020 will prove to be an incentive for foreign investors. Addressing the retail sector specifically, the National Logistics Policy will now advance towards making MSMEs more competitive as the policy will be released soon. More, the new budget dynamics will act as a booster for Food Corporation of India and Warehousing Corporation of India. Furthermore, the Government has increased the infrastructure spend which will definitely improve reachability for e-commerce companies.
As a substantial influence of the GST, tax incidence has come down substantially which has become a launchpad for various investments. If the retail sector gets some substantial budget; the retail industry will be able to deliver a great consumer experience. However, few dramatic proposals on this, are still awaited."
Sunny Nandwani, Founder, Managing Partner, Acuver
"With an increase in the allocation of funds from 94,800 cr last year to 99300 this year, the government continues to invest more in the education sector to infuse growth in the country. Addressing the severe skill shortage that businesses across India are facing at present, focus on skill development will lead to progress in the nation. We are also very affirmative with regards to the new education policy that will ensure quality education to students. Also, the introduction of degree-level full-fledged online education will empower the disadvantaged sections of the society in acquiring employable skills and for upskilling.
The taxation of ESOP for employees that has been one of the top demands and will be a boon in the start-up ecosystem."
Nikhil Barshikar, Founder and Managing Director, Imarticus
"As a member of the startup community in India, it is exciting and welcome to hear our Finance Minister recognize startups as a bedrock of the economy and yto acknowledge our role in job and wealth creation. It is commendable that ESOPs will only be taxed on liquidation as opposed to exercise. This will serve as a lucrative incentive that helps attract and retain talent in our space. The move to remove DDT is another great proposal as it will make Indian equities more appealing for investors and also encourage FDIs. We are confident that these measures will lead to a boost in investments and consequentially quicken the economy."
Aditya Agarwal, Co-Founder, Wealthy:
"As per our expectations, the Budget 2020 has proposed a slew of measures to propel the economy towards growth. The government’s sustained push for tech innovation and entrepreneurship is encouraging from a market perspective. The Budget has particularly proposed a conducive environment for the start-up sector in India and these measures are sure to cement India’s position as a hotbed of startups. The market also stands to gain from the revised Income Tax structure as it indicates a higher disposable income in the hands of the common man. This could prove to be positive in terms of investments and could potentially boost the capital market."
Basavaraj Puttappa, Founder and CEO, Zeva Astras:
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Disappointment of the equity market appears an overreaction, but there are sentimental issues as regards the selling pressures gaining momentum across the board. In what way the removal of dividend distribution tax(DDT) helps the tax burden of investors, as they might pay up more by way of income tax. While small savings will be hit given the option to shift to the new income tax slabs, there is no clarity as regards the net flows into the equity market with the net reduction of income tax. Market was eagerly hoping for a correction in the Long Term Capital Gains Tax (LTCG) which the FM silently ignored. Government passes on the hard choice to the middle class in so far as their tax savings versus direct tax savings from income.
Most importantly the fall in the Bank Nifty due to the additional burden on the banking sector due to five times hike in the deposit insurance costs, up to Rs 5 lakh per depositor. There are no clear policy measures as regards the banking sector is concerned, except that they are encouraged to raised borrowing from the market for additional capitalization. Disinvestment of the Life Insurance Corporation to the extent of 10 percent will bring substantial money for the Government given their valuation which stands over 29 Lakh crore. This along with the dilution of Government remaining share in the IDBI Bank and the sale of Air India that has already announced which will add to Government’s kitty.
The macro worries still remain, given that fiscal deficit targets raised to 3.5 per cent of GDP along with a lower target of nominal GDP growth target of 10 per cent for the FY21, and the unclear roadmap for the higher borrowing programme of the Government. Inflation is already catching up and the lowering of the interest rates path will be held back, the RBI’s Monetary Policy Committee (MPC) is expected to keep the Repo rate steady. The Budget has not addressed the present demand slackening that has contributed to the growth slowdown, and particularly rural consumption, which might delay the revival of the economy in the near term. There is not much structural reform agenda in the Budget proposal, though there are no freebies and hike in the unproductive expenditures. The FM leaves the challenges of the growth revival to the market, as factors that would hinder would be higher interest rates going forward, unclear infrastructure financing plan, and specific measures to enhance credit flows from the banks and NBFC sector.
There is considerable focus on attracting foreign portfolio investment flows are placed in the Budget, in the form of raising their share from 9 per cent to 15 per cent, opening up of Government securities to NRIs, and most importantly the incentives for the Sovereign Wealth Funds (SWFs) in financing infrastructure. There are definitely scope for the growth of the corporate bond market, by way of FPI inflows and particularly into the companies that would benefit from the abolition of dividend distribution taxes.
-Dr. H. K.Pradhan, Professor of Finance and Economics at XLRI – Xavier School of Management
“Acknowledging the influence of technology in shaping new age economy is a distinct aspect of the Union budget. Focus on artificial intelligence and targets set for quantum computing is a step in the right direction to strengthen India’s position as a frontrunner in exponential technologies. From IT services perspective, it will be interesting to see if setting up more export hubs is encouraged by incentives for the industry that has been at the forefront of exports for the country.”
Sanjay Jalona CEO&MD, LTI (L&T Infotech)
Mr. Satish Gupta, Executive Director, JK Technosoft Ltd. said, “In the era of globalization, the Union Budget 2020 focused deeply on ‘Aspirational India’ and ‘Digital Revolution’ with emphasis on evolving the economy digitally by skilling India and increasing job opportunities in the budding as well as cross-cutting fields of Data Analytics, Artificial Intelligence (AI) Robotics and Machine Learning (ML). The Government also announced building of data centre parks throughout the country along with allocation of INR 8,000 crore to set up for the National Mission on Quantum Computing and Technology. Furthermore, the use of AI in 'Ayushman Bharat' Yojana, will help in developing the healthcare industry using advanced technology such as AI and other enterprise solutions, thereby achieving seamless delivery of services. We also applaud the Government’s move to empower Rural India by helping 20 lakh farmers set up standalone solar pumps and 15 lakh solarise grid-connected pump sets.”
Amarsh Chaturvedi, Co-Founder & Director, Transerve Technologies Pvt. Ltd. said, “The Government’s vision of ‘Vibrant India’ bought in immense focus on ‘Digital Governance’ that is likely to bring in a paradigm shift in the overall economy. We are delighted to hear that the Government ULB’s (Urban Local Bodies) internship opportunities for civic-welfare programs will help in increasing job opportunities and in turn Skilling the Indian Youth."
Ashwani Rawat, Co-Founder & Director, Transerve Technologies Pvt. Ltd. said, “We commend the Government’s announcement of proposed budget allocation in setting up 5 new Smart Cities under PPP model and further extend our support to this initiative. While the Government proposed to expand the horizon of ongoing ‘Swachh Bharat Mission’ in order to undertake sustainable solid waste management harnessing latest technology in every village, we further hope that this initiative highlighted by the FM would be extended to urban areas as well.”
Ruchi Garg, CEO, Co-Founder, Venuelook, an online marketplace for venue booking and event planning said,“The full-fledged 2020 budget is commendable as it has all the right points for the Indian economy to be a game changer in the year ahead. With emphasis on ‘entrepreneurship’ and ‘startups,’ we are glad the Government has opened a path to creating more job opportunities in the country. Furthermore, more regime in technology will help startups and the private sector to reach Tier I and Tier II cities, as it will give more opportunities to young talents. Observing the proposed mission-vision on women centric developments and targets to boost the Indian economy, this budget will motivate many women to come forward and embrace women entrepreneurship in India.”
Gaurav Bahl, Co-Founder & CEO, KOOLCHAS, a QSR chain said, “India has one of the strongest startup ecosystems in which entrepreneurship takes the core position. Hence, one of the measures taken in the new Union 2020 budget to increase the turnover limits for startups from 25 crore to 100 crore shall be instrumental to create employment opportunities. The cold storage initiative taken by the Government is another great move which will reduce the cost of manufacturing food, and will further boost the overall income for us. The new taxpayer charter is great relief as it would ensure harassment-free taxes, and will mark a breakthrough in the startup ecosystem with more transparency and efficiency. The Government’s firm agenda of stable business, building of advisory cells and investment clearance will add to the advantage of expanding new businesses with the budget.”
Commenting on Post Budget 2020 announcement made today Mr. Vinay Jain, Founder and CEO, Grafdoer said, "We appreciate the Government's focus on sanitation industry under Swachh Bharat Abhiyan campaign committing to Open Defecation Free Country by allocating INR 12,300 crore. This is an exceptional move towards the development of our nation. The Government’s emphasis on supporting the MSME sector by providing employment opportunities and providing a subordinate debt by banks is a much appreciated move. We are positive about the Government’s focus on boosting the domestic manufacturing sector, as that will further boost Made In India. Also, the reduction in the Income Tax Slab has given a relief to the middle class sector of our Society, as it will increase their buying power and boost the market.”
Sachin Mittal CEO & Founder, Loanwalle.com said, “In the recently proposed Union Budget 2020, the Government’s focus on entrepreneurship for startup businesses is commendable, as that will generate more job opportunities in our country. Speaking on the financial side, the Government emphasised on more liquidity flow within NBFCs which will help boost the current slopping NBFC and private lending sector. Further, it will allow increased lending opportunities with greater ease. We applaud the new announcement by the FM where NBFCs having turnover of INR 100 crore will now be eligible for SARFAESI (The Securitisation and Reconstruction of Financial Assets and Enforcement of Securities Interest Act). While earlier, only companies with a turnover of INR 500 crore were eligible to recover their debts by selling properties of the defaulters, going forward, the new Budget announcement will allow smaller companies as well to recover their debts. This will further offer more capital flow in the market.”
Ayyushman Mehta, Managing Director, Mavox Helmets - Sandhar Amkin Industries (P) Ltd said, “The second budget by Finance Minister, Nirmala Sitharaman catered mostly to the demand side of the economy. By putting in more money in the hands of the individuals, Hon’ble Finance Minister’s take on abolishing the Dividend Distribution Tax (DDT) is surely a tax relief for the middle class and lower middle-class segments, while on the corporate side it is highly positive for all consumption-linked Auto sector companies, and the overall market. The simplification of the tax regime is sure to improve public sentiment and boost the economy. This budget is likely to revive our country’s economic growth and create new job opportunities.”
AI Digital Marketing
Kuldeep Chaudhary CEO & Co-Founder, ADOHM AI-Marketing & Sales platform said, “With emphasis on evolving the economy digitally, the Union Budget 2020-2021 focus on Technological Development by skilling India in cross-cutting fields such as Artificial Intelligence (AI) was a commendable move. Moreover, thanks to Finance Minister Nirmala Sitharaman's announcement on promoting entrepreneurship through startup businesses, as that will create more job opportunities in the country. Many Indian startups can now breathe a sigh of relief as the turnover limits has increased to INR 100 crore from INR 25 crore. This initiative will provide relief on the tax burden to employees eligible for employee stock options (ESOPs).”
Dr. Arvind Singhatiya, LegalKart (Founder and CEO) said, "We feel that in 2020 the focus will be on the consumer market—the supply of legal services directly to individuals and businesses will be stronger and the concept of ‘Marketplaces’ will grow. Artificial intelligence in finding and engaging a lawyer or legal firm will evolve to solve the difficulty of consumers often. Being a Startup company we are also expecting a relaxation in the taxation and more funding for startup incubators."
Travel & Tourism
In tune with the present government vision to encourage Indian travellers to travel more and contribute towards the nation's growth, this budget takes it a step ahead. The budget has focused on promoting tourism & travel with an overall budget of Rs. 2500 crores in year 2020-21. Government aims to develop 100 more domestic airports under the UDAN scheme. To promote travel via railways, government will focus on more Tejas type trains that will connect tourist destinations in India.
The Finance Minister has also laid stress on the development of archaeological sites into iconic sites with on-site museums. Five such sites are- Rakhigarhi, Hastinapur, Shivsagar, Dholavira and Adichanallur. Government has also announced renovation of 4 key museums. Rs,150 crore have been allocated for the ministry of culture in 2020-21.
We are hopeful that this budget will open new avenues for the travel industry.
Nishant Pitti, Co-Founder & CEO, EaseMyTrip