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Category: Budget

  • A budget like no other; take a bow Ms Sitharaman

    A budget like no other; take a bow Ms Sitharaman

    MUMBAI: Imagine opening your paycheck and finding an unexpected bonus—except this time, it’s courtesy of the taxman. Looks like all the meme trolling has finally aided the middle class. FM Nirmala Sitharaman’s Union Budget 2025 under section 115BAC has shaken up India’s tax slabs like a well-mixed cocktail, giving middle-class earners a Rs 1 lakh crore collective boost. If last year’s tax regime was a clunky old scooter, this year’s is a turbocharged sedan with better mileage.

    The headline-grabber? The tax-free ceiling now sits at Rs 12 lakh, up from Rs 7 lakh last year, translating into a neat Rs 80,000 annual saving for many households. The 30 per cent tax slab, which kicked in at Rs 15 lakh before, has now been pushed to Rs 24 lakh. That’s a serious upgrade—enough to fund an iPhone 15 Pro Max, a holiday in Bali, or 12 EMIs on a Tata Nexon.

    But here’s the real question: will these extra rupees flood shopping malls and stock markets, or will inflation gobble them up before they can do any real good? While finance honchos cheer, economists are cautiously watching if this fiscal facelift is a lasting glow-up or just a one-time Instagram filter.

    Tax Slabs
    The new tax regime, which now serves as the default for Assessment Year 2025-26, offers a streamlined six-tier structure:
    * 0 per cent tax up to Rs 4 lakh (previously Rs 3 lakh)
    * 5 per cent on Rs 4–8 lakh
    * 10 per cent on Rs 8–12 lakh
    * 15 per cent on Rs 12–16 lakh
    * 20 per cent on Rs 16–20 lakh
    * 25 per cent on Rs 20–24 lakh
    * 30 per cent only above Rs 24 lakh (up from Rs 15 lakh earlier)

    Under the default new regime for assessment year 2025-26, the 30 per cent tax bracket now kicks in at Rs 15 lakh, up from Rs 10 lakh in the old structure (Part I rates). A taxpayer earning Rs 15 lakh saves Rs 37,500 annually versus the old regime. The slabs now have six tiers (vs four earlier), with a 5 per cent rate for Rs 3-7 lakh and 10 per cent for Rs 7-10 lakh. For seniors, the Rs 5 lakh threshold for octogenarians remains a sweetener.

    Sitharaman’s ministry has also played its cards well with surcharge reductions:

    * The surcharge on incomes exceeding Rs 2 crore (excluding dividends/capital gains) has been trimmed to 25 per cent from 37 per cent.
    * The ultra-rich still face the 37 per cent surcharge, but only on incomes exceeding Rs 5 crore.
    * A taxpayer earning Rs 3 crore saves Rs 3.7 lakh in surcharges.
    The government’s objective? A calibrated redistribution of wealth that puts more money in middle-class hands while ensuring high earners see incentives to keep investing.
    Consumer boom: Will it hold?
    A Deloitte study suggests that every Rs 1 saved in taxes results in Rs 0.65 of additional consumer spending. Here’s what that means for the economy:
    * Rs 37,500 savings per taxpayer Rs 24,375 extra spending per household
    * Eight million taxpayers in this bracket  Rs 19,500 crore injected into markets
    * Private consumption growth is forecasted to touch 7.8 per cent YoY in H2 2025, up from 6.7 per cent
     

    Says media veteran Yesudas Pillai: ” a proud Indian, I couldn’t have asked for a more comprehensive and forward-looking budget, setting aside all political narratives.It is visionary, inclusive, and growth-driven—a bold economic catalyst that fuels consumption, empowers communities, and accelerates sustainable development. With its progressive, consumption-led, and investment-focused approach, this blueprint lays the foundation for a resilient and thriving future. The budget ensures no sector is left untouched, with a strong emphasis even on center-state collaboration to drive holistic and inclusive growth. This is, without a doubt, the most transformative budget I have ever seen.

    The stock market is throwing a post-Budget party, and everyone’s invited! Avenue Supermarts (D-Mart’s parent) is up over 10 per cent, clocking its fifth straight day of gains. FMCG heavyweights HUL and ITC saw a five  per cent surge, as investors bet on rising grocery bills. Varun Beverages, PepsiCo’s bottling giant, snapped a two-day losing streak and fizzed up by six  per cent. Not to be left out, Sapphire Foods (operator of KFC and Pizza Hut) is dishing out a near 10 per cent jump.

    Even food delivery titans Zomato and Swiggy are savoring a six  per cent rally, proving that tax savings might just be feeding India’s appetite. Other big gainers? Godfrey Phillips (Up 12 per cent), Blue Star (Up 11 per cent), Phoenix Mills (Up 7.5 per cent), Devyani International (Up seven per cent), and Godrej Consumer (Up 6.5 per cent). Looks like the budget has delivered more than just tax cuts—it’s serving up a full-fledged consumption boom!

    Tata Motors ED Girish Wagh said, “Cutting customs duties on battery materials is a power move—literally. It’s a big push for India’s EV ecosystem and a greener future.”
    Godrej Consumer Products CFO Aasif Malbari noted, “This budget balances rural growth, manufacturing, and consumer demand—vital cogs for the FMCG sector. More jobs and rural investments mean stronger markets and higher consumption.”
    Marketing bonanza: Rs 2.3 trillion up for grabs?
    India’s advertising industry is preparing for a Rs 2.3 trillion windfall, assuming 30 per cent of tax savings flow into discretionary spends. Expect:
    * E-commerce wars: Flipkart, Amazon, Nykaa, and Myntra gearing up for record discount seasons.
    * Luxury labels expanding: Brands like Louis Vuitton and Tesla targeting Tier-2 cities.
    * Digital ad spends exploding: Google and Meta looking at all-time high revenues.
    When disposable income rises, premiumisation kicks in. Consumers opt for the iPhone over a budget Android, or a luxury sedan over a hatchback. GST collections are also forecasted to rise 12 per cent YoY, reflecting the broader spending wave.
    Beyond direct tax cuts, the budget carries a silent game-changer—the reduction of TDS on insurance commissions from 5 per cent to 2 per cent. With insurance premiums collecting Rs 7.3 lakh crore last year, this subtle move could spur a 15 per cent rise in agent-driven policy sales. Expect health and term insurance policies to fly off the shelves, driven by a more incentivised agent network.
    Despite all the optimism, a few red flags remain:
    * Inflation concerns: At 6.1 per cent in December 2024, inflation could dilute some tax savings.
    * Sensex jitters: The stock market’s muted response suggests investor caution over fiscal deficits.
    * Savings paradox: If too many households hoard their extra cash instead of spending, GDP growth could take a hit.

    The 2025 tax reset has transformed India into a giant Petri dish of economic psychology. Will taxpayers loosen their purse strings and fuel growth, or will inflation rain on this parade? Will digital marketing giants be the biggest winners of this newfound liquidity? And most importantly—does this set the stage for GST rate rationalisation ahead?

    One thing is clear: India’s middle class is stepping into 2025 with thicker wallets and bigger spending power. Whether that power 

  • Sitharaman stuns with her Union budget 2025

    Sitharaman stuns with her Union budget 2025

    MUMBAI:Should finance minister  Nirmala Sitharaman  be hailed  or should she be nailed? 
    The jury is out – as were the stock markets.

    One faction has been stunned in a negative sense and  is pretty morose that the government is not pumping in enough capital spending behind infrastructure to make up for the loss of revenue courtesy the tax reforms. Hence, they pulled down all the infrastructure stocks. 

    They will change their minds quickly should the government make some interim extra-budgetary announcements on infrastructure spends which it most likely will.

    Another faction is singing Sitharaman’s hosannahs for her tax reforms making government levies on personal  income nil upto Rs 12 lakh. They believe that the repressed middle class will run to the malls and markets and buy more groceries and garters (read: items of luxury) now that it will more money in its  pocket rather than given away to the government by way of taxes. Customers  will premiumise, go after articles of conspicuous consumption.

    This lot of the jury can’t stop praising Ms Sitharaman. They sent the stocks of FMCG, retail firms, entertainment outlets screaming up on the bourses. 

    Should they be proved right, then advertising spends will rise, sales will soar, and boy will it be party time for all. 

    On the whole, however, the Union Budget is being seen as growth oriented introducing significant measures aimed at stimulating economic growth and addressing key societal concerns.

    In a bid to bolster the middle class and enhance domestic consumption, the government has raised the income tax exemption threshold from Rs 8 lakh to Rs 12 lakh per annum. Additionally, tax rates for higher income brackets have been reduced, a move anticipated to increase household spending and savings. 

    The budget unveiled a six-year programme to boost the production of pulses and cotton, aiming to reduce dependence on imports. This includes state agencies purchasing pulses at guaranteed prices to support farmers. Furthermore, a “national mission” has been announced to develop high-yielding seed varieties, addressing challenges posed by shrinking farmlands and erratic weather. 

    Revised MSME criteria will double investment and turnover limits, benefiting over a  crore enterprises.
    Credit guarantee cover for micro and small enterprises will increase from Rs 5 crore to Rs  10 crore, with start-ups eligible for up to Rs  20 crore.

    A customised credit card scheme with a Rs  5 lakh limit will benefit 10 lakh micro-enterprises registered on the Udyam portal.

    A Fund of Funds with a fresh government contribution of Rs 10,000 crore will support start-ups. A scheme offering loans up to Rs  2 crore will target first-time women, Scheduled Caste, and Scheduled Tribe entrepreneurs.

    Labour-intensive sectors like footwear, leather, and toys will be promoted to boost employment and exports
    The government plans to modestly increase capital spending to offset revenue losses from tax cuts. This includes investments in infrastructure development, manufacturing, and exports. A high-level committee for regulatory reforms and the creation of an investment friendliness index have been proposed to improve the ease of doing business. 

    Measures benefiting the poor, youth, farmers, and women have been incorporated into the budget. The allocation for food, fertiliser, and rural employment subsidies remains nearly flat at Rs 4.57 trillion, with the rural job guarantee programme retaining its budget of Rs 860 billion. These steps aim to support the rural economy and provide a safety net for vulnerable populations. 

    Infrastructure ministries will outline three-year project pipelines under PPP mode. States can leverage the India Infrastructure Project Development Fund.

    The government has allocated Rs 1.5 lakh crore as interest-free loans to states for capital expenditure. The second Asset Monetisation Plan (2025-30) aims to unlock Rs 10 lakh crore for new projects.

    The Jal Jeevan Mission will extend until 2028 to achieve universal rural tap water access.

    Urban sector reforms will be incentivised, with a Rs 1 lakh crore Urban Challenge Fund supporting city redevelopment and sanitation projects.

    India Post will evolve into a logistics hub for MSMEs, with NCDC supported for cooperative lending.

    A National Manufacturing Mission will bolster clean tech production, including solar PV, EV batteries, wind turbines, and grid-scale batteries.

  • Budget sparks startup optimism in electric vehicle innovation

    Budget sparks startup optimism in electric vehicle innovation

    Mumbai: Amidst the dynamic landscape of India’s burgeoning startup ecosystem, the recent interim Union Budget for 2024 has sparked a wave of reactions from key players in various sectors. With a resounding focus on fortifying the electric vehicle (EV) ecosystem and supporting innovation across industries, the budget has drawn both applause and anticipation for its potential impact on the entrepreneurial landscape.

    Here are the diverse perspectives and insights shared by prominent figures representing startups and ventures, each echoing a unique chord in the symphony of India’s startup narrative.

    ParkMate – co-founder & CEO Dhananjaya Bharadwaj

    ParkMate applauds the interim Union Budget 2024-25 for its commendable focus on fortifying the electric vehicle ecosystem, a positive development for all parking management stakeholders. The government’s pledge to allocate a One lakh crore corpus with a 50-year interest-free financing scheme for private sector R&D holds tremendous promise, capable of ushering innovative solutions across sectors. Importantly, this substantial financial commitment not only empowers ongoing research and development initiatives but also lays the foundation for transformative, long-term projects. In addition, the extension of tax benefits to startups until March 31, 2025, reflects the government’s ongoing support for entrepreneurial ventures, including those in the auto-tech space like ParkMate” said Dhananjaya Bharadwaj, co-founder and CEO of ParkMate.

    e-Sprinto – co-founder & director Atul Gupta

    “Certainly, particulars regarding the E-Mobility mission and encouragement of EV infrastructure were missing in the speech, however, the budget did point towards creating ambitious policies towards adoption of EVs in the public transportation sector. Furthermore, since the budget has circumscribed the requirement to strengthen manufacturing of EVs and infrastructure, we can be sure that it stands high on the government’s agenda, and we do expect supporting policies to follow soon,” said Atul Gupta- Co-founder & Director at e-Sprinto.

    PickMyWork co-founder and CBO Kajal Malik

    “We understand this is an Interim Budget and did not introduce much on the policy aspect for startups specifically, nevertheless, with the allocation of a Rs one lakh crore corpus for interest-free loans, the government not only acknowledges but firmly supports the pivotal role startups play in our economy’s fabric. The extension of tax benefits for another year further cements the commitment to nurturing the immediate needs of this vibrant sector. As we look ahead, we remain hopeful for policy reforms that will further invigorate angel and foreign investments, setting the stage for an unprecedented era of growth and opportunity post-elections. This budget, indeed, is a testament to the belief that startups are not just businesses, but the very backbone of our nation’s future prosperity.”

    Quantum Energy managing director Chakravarthi C

    “The emphasis on eco-conscious initiatives in the previous budget, with environmental sustainability among the top seven priorities, set a commendable precedent. In today’s budget, this commitment is not only sustained but elevated, reflecting a clear understanding of the urgent need to address environmental challenges. While applauding the positive aspects of the interim budget, we note certain expectations that remain unmet. The imminent expiration of the FAME II subsidy program by March 2024 sparked hopes for its extension, aligning with the government’s ambitious 2030 target of 30 per cent of electric vehicles on Indian roads. An extension would have solidified support for the EV industry. Furthermore, a substantial reduction in GST on lithium-ion battery packs and cells, from 18 per cent to 5 per cent, would have alleviated manufacturing costs, making EVs more competitively priced and boosting consumer adoption. The absence of a standardized policy for the battery-swapping market is also a missed opportunity. A unified policy would enhance safety, streamline charging infrastructure, and create a more reliable and secure environment for EV users. As we look forward to the full budget post-general elections, we hope these crucial aspects receive due consideration for the sustainable growth of the electric vehicle sector.”

    Keydroid – co-founder & CEO Rajat Jaiswal

    The government’s resolute commitment to bolstering India’s automotive ecosystem echoes loudly in this year’s budget. The emphasis on fortifying the electric vehicle (EV) sector through robust support for manufacturing and charging infrastructure is a positive stride. The allocation of a 1-lakh crore corpus, with 50-year interest-free financing, aims to propel private sector R&D, fostering innovation. Extending tax benefits to startups until March 31, 2025, emphasizes a supportive environment for entrepreneurial ventures. While this interim budget recognizes the transformative shift in the automotive sector, we await full budget policies post-general elections to address the evolving landscape comprehensively, ensuring sustained growth for consumers, OEMs and suppliers” said Rajat Jaiswal – Co-founder & CEO at Keydroid

    InfoVision managing director Shreeranganath Kulkarni

    InfoVision warmly welcomes the budget announcement by Finance Minister Nirmala Sitharaman. The introduction of a one-lakh crore fund with a 50-year interest-free benefit for private sector research and development is a transformative step, particularly for innovation-driven enterprises like ours with a strong focus on edge technologies such as  Artificial Intelligence (AI) and Machine Learning (ML).

    The injection of such long-term, interest-free capital promises to substantially boost our research and development initiatives that serve not only India but also the global market. It arrives at an opportune time, aligning with InfoVision’s recognition in the Zinnov Zones for Engineering R&D and Digital Services 2023, particularly for our work in Data & AI Engineering.

    This financial support will undoubtedly speed up efforts to create top-tier innovations in India for the world. It underscores our commitment to leveraging India’s rich talent pool and contributes to our nation’s technological progress.

    Pinnacle Industries & EKA Mobility founder & chairman Dr Sudhir Mehta

    The union government has yet again reinstated its commitment to sustainably growing and strengthening the economy. Capital allocation of 11.11 lakh crore towards infrastructure development will play a pivotal role in fostering economic growth and prosperity. Additionally, investments in infrastructure create jobs, stimulate demand for goods and services, and attract private-sector investment. The government’s initiatives and focus on uplifting women’s entrepreneurship will significantly enhance the startup ecosystem, propelling the Indian economy to new heights.

    The emphasis on improving manufacturing and charging infrastructure aligns perfectly with our aim for a more environmentally responsible tomorrow.

    Simultaneously, the growing adoption of e-buses for public transport networks is a commendable step that not only solves environmental issues but also paves the way for significant growth in the electric vehicle market. The emphasis on EV charging infrastructure not only accelerates the transition to greener energy, but also encourages entrepreneurial possibilities for vendors, creating jobs for young people skilled in manufacture, installation, and maintenance.

    Furthermore, the introduction of the rooftop solarisation scheme, the conversion of 40,000 rail coaches to Vande Bharat standards, and the ambitious goal of establishing 100 million tonnes of coal gasification and liquefaction capacity by 2030 demonstrate a comprehensive approach to sustainable development. Additional efforts, such as starting a new biomanufacturing and bio-foundry plan and legislating the gradual mixing of CNG and biogas, add to the budget’s optimistic tone for a future in which economic growth and environmental conscience coexist. And we look forward to benefiting from these positive developments. The implementation of such measures serves as a significant boost to Make in India and contributes to the realization of our vision to promote domestic manufacturing.

    Alt Mobility co-founder & CFO Manas Arora

    In a visionary move towards sustainable transportation, Alt Mobility applauds the Finance Minister’s commitment to bolster the e-vehicle ecosystem. By offering innovative solutions, Alt Mobility stands ready to contribute to the government’s vision, supporting the expansion of e-buses and charging infrastructure. Our commitment to lease charging infrastructure aligns seamlessly with the Finance Minister’s emphasis on fostering a robust e-mobility network. This collaboration not only accelerates the transition to green transportation but also ensures a seamless and secure payment mechanism. Alt Mobility is proud to be a driving force in the government’s journey towards a greener and more sustainable future for transportation.

    Neuron Energy CEO & co-founder Pratik Kamdar

    “The Interim Budget focused on key sectors and one of the promising ones is Electric Vehicles (EV). The initiatives will enhance and fortify the EV ecosystem by bolstering manufacturing and charging infrastructure. Additionally, the encouragement of greater adoption of e-buses for public transport networks through payment security mechanisms is a notable benefit. These investments not only pave the way for increased EV sales and adoption but also open doors for burgeoning job opportunities and entrepreneurial ventures within the sector. These efforts remain dedicated to driving India’s green mobility revolution forward. There is also an anticipated outcome in the form of economic empowerment which will equip the youth with valuable technical skills, ensuring a robust workforce for the manufacturing of EV chargers, and associated equipment. We look forward to the July budget where the focus will be on the Faster Adoption and Manufacturing of Hybrid and Electric Vehicles (FAME II) scheme and much-anticipated FAME III scheme.”

  • Sectoral wishlists for Budget 2024-25: What industries hope to see

    Sectoral wishlists for Budget 2024-25: What industries hope to see

    Mumbai: The Union Budget for 2024-25, scheduled to be presented on 1 February, is a highly anticipated event for every sector of the Indian economy. From infrastructure, Information technology, telecom, agriculture, healthcare, and human resources to education, stakeholders are eagerly waiting to see how the government’s financial roadmap will impact their industries. This article will delve into the key highlights and expectations for different sector’s industry leaders in Budget 2024-25, based on pre-budget consultations, industry reports, and expert analyses.

    1.      BIF president T V Ramachandran said, “India is undergoing rapid digital transformation on the back of continuous Government reforms. The recently notified Telecommunications Act 2023 is a game changer and will help catalyze the growth of the sector even further.

    As Broadband India Forum, we would like to see the Union Budget 2024-25 focus on three important aspects viz.

    ●        Facilitate affordable Broadband through Satcom through reasonably modest spectrum fees

    ●        Budgetary support for the growth of Public Wi-Fi through waiver of duties & levies on equipment and on revenues

    ●        Budgetary support to incentivize Fiber to the Building +Wi-Fi to enable rapid growth in Fixed Broadband, by way of reduction in statutory fees and levies and exemption of GST on service revenues

    With the above measures, we hope that Union Budget will help accelerate the momentum of the reforms in the sector which has been set by other Government policies & measures”

    2.      Fujitsu global delivery centres head Manoj Nair said, “Major economies across the world are seeing a challenging macroeconomic situation with slowdowns that have affected various industries. Amid this period, it is the tech industry that is leading the charge in recovery with a positive outlook. The demand for IT skills, especially in the new-age technologies – AI, ML, analytics, data science and other digital capabilities continues to surge presenting an opportune time to GCCs to further scale and usher in the next phase of digital revolution in India. India is a leading hub of Global Capability Centers (GCCs) with 1500+ GCCs housed in India that play a crucial role in growth of the tech industry. According to EY, the domestic GCC market size is expected to hit US$110b by 2030 with the number of GCCs  expected to scale to 2400. Over the past few years, there has been a major shift in how GCCs operate – from delivering cutting-edge services to becoming powerful innovation hubs. These GCCs, with their vast trove of STEM talent and heavy investments in technology and upskilling are uniquely positioned to spearhead digital transformation for customers. Our technical capabilities across AI, ML, data science, cloud, automation, enterprise applications are crucial to powering deep research and product development. “

    “Now, as GCCs continue to invest in reskilling talent in the face of evolving tech landscape, building demand-based and niche skills in relevant areas, they are playing a crucial role in employment generation for India. With GCCs being a major engine for economic growth, Budget 2024 can play a key role in facilitating growth and sustainable development. GCCs require support and investment for infrastructure and growth environment. The Budget 2024 can help GCCs further scale and accelerate innovation at a faster rate as India emerges as the world’s technology and services hub.”

    3.      STT GDC India chief financial officer ) Bimal Khandelwal said, “As India charges ahead on its digital transformation journey, the upcoming budget offers a timely window to cultivate a world-class data center ecosystem that steers this advancement. We are hopeful of incentives to spur domestic manufacturing and infrastructure builds specially tailored for data centers’ massive scale and seamless connectivity needs. Attractive capital subsidies for setting up future-ready facilities and easy financing options to offset development costs will unleash growth. We also envision provisions that encourage the adoption of renewable energy to meet data centers’ clean power appetites. Additionally, preferential procurement directives favoring home-grown data centers will provide an upside. With an emphasis on nurturing a cutting-edge domestic data center industry, India can swiftly go up the technology value chain and cement dominance in delivering digital services globally. Having granted an infrastructure tag has remarkably expedited logistics. “

    4.      Fujitsu International Regions HR shared services head Sumit Sabharwal said, “As an HR leader, I eagerly anticipate the 2024 budget, urging the Government of India to prioritize robust investments in skill development. A strategic focus on honing our workforce’s capabilities will propel India’s IT industry to new heights, fostering innovation, and global competitiveness. The India artificial intelligence market size reached $ 680 million in 2022 and further it is expected to reach $3,935.5 million by 2028, showcasing a growth rate (CAGR) of 33.28% between 2023-2028. Data Science and Analytics have emerged as a game-changer across industries, with organizations harnessing data-driven insights to make informed decisions. With exponential growth in the digital realm, this field is expected to witness substantial opportunities in the coming years. The demand for STEM jobs in India has increased by 44% in the last 5 years. STEM skills will be a requirement for 80% of the jobs created in the next decade. To meet the increasing demands for STEM professionals in India’s rapidly growing technology, engineering, and manufacturing sectors, it becomes imperative to offer robust STEM education. For organizations, it has become necessary to provide upskilling and reskilling opportunities to existing employees. The Fourth Industrial Revolution is upon us, and STEM education will align closely with its demands. To keep up with this new information-based and technology-dependent world, India must scale up the innovation ladder with initiatives.”

    5.      Fujitsu JDU head Meghan Nandgaonkar shared his views saying that, “Technology has played an important role in India’s growth story. Our expectation from Budget 2024 furthers to boost technology solutions for sustainable society, green initiatives, agro-tech, etc., Additional focus on skilling initiatives for people engaged in traditional sectors, using technology and online delivery along with incentives for technology companies in Tier 2 and Tier 3 cities.”

  • India’s pre-Union Budget 2024 expectations set the stage for economic revival

    India’s pre-Union Budget 2024 expectations set the stage for economic revival

    Mumbai: As India anticipates the unveiling of its Budget for the fiscal year 2024, expectations run high for a comprehensive economic roadmap that addresses the nation’s challenges and capitalises on emerging opportunities.

    Against the backdrop of global economic shifts and domestic imperatives, stakeholders eagerly await key policy announcements that are poised to shape the trajectory of India’s growth.

    The Budget is expected to navigate the delicate balance between stimulating economic recovery, fostering innovation, and addressing pressing social issues. This pivotal financial document is poised to play a crucial role in steering India towards a resilient and sustainable future.

    Indiantelevision.com reached out to various sectors including brands, marketing, e-sports, AI, have shared their thoughts on Budget 2024.

    Edited excerpts

    Noise co-founder Amit Khatri

    India’s resilient economy, fueled by entrepreneurship and proactive governance, is set to reach $5 trillion by 2024. With a projected annual growth rate of 6.3%, India’s ascent to become the third-largest global economy by 2027 is on the horizon.

    As we anticipate the upcoming Union budget, a robust regulatory framework fortifying the startup ecosystem, and streamlined funds allocation, alongside strategic efforts in technological advancements, are crucial. A dedicated push to boost R&D and technological opportunities within the country will be pivotal in shaping India’s economic landscape and enhancing global investment.

    Initiatives like the PLI scheme have been instrumental in boosting ‘Make in India’ efforts, and we believe the upcoming budget holds the utmost importance in further shaping India’s electronic manufacturing space. We hope for continued support from the government with the push for localizing components as well, fostering an environment that encourages homegrown brands to lead India on the global stage, further accelerating growth and enhancing international prominence.

    Loco chief financial officer Suhaas Khullar

    The Indian gaming and esports industry is experiencing a robust growth trajectory, projected to surge by 35-40% annually. This momentum is fueled by a maturing consumer base and supportive regulatory measures. Recent policy advancements, including the landmark recognition of esports as a mainstream sport and favorable state-based model policies for AVGC-XR, hold immense potential. These initiatives are already propelling grassroots talent development across diverse regions of India.

    For the upcoming budget, dedicated allocations for skill development and targeted tax incentives for the AVGC sector will be pivotal in realizing the ‘Create in India’ vision. Such fiscal support will foster sustained success and multi-decade growth in this sector.

    Let’s Influence founder Bhavna Sethi

    As the 2024 budget is to be shared soon, the marketing world is on the edge of big changes, waiting to be influenced by an expected budget that mirrors how people are changing their buying habits and the trends in the market. As we step into this important year, we’re all focused on upcoming financial decisions that could really shake up our industry.

    We can feel the excitement in the marketing community, sensing a great chance to work together. We’re eager to connect with important players in the field, coming together to share a mix of thoughts and ideas that go beyond just looking at the numbers. Our aim is to add to the story, not just breaking down where the money is going but also shining a light on how it affects businesses navigating this tricky landscape.

    This team effort goes beyond the usual budget talks; it’s a place for us to figure out together how these financial choices will really impact the marketing world. Think of it as an opportunity to dig deeper and get a better understanding of the problems and possibilities waiting for us. Together, we’re starting a journey to uncover the details of what we expect from the budget in 2024, knowing that the story we create will echo across different industries.

    As we move through this time of financial change, let’s use our combined knowledge to tell a story that not only captures the vibe of the marketing world but also speaks to many different areas. Together, we’re not just going to explain the budget but actively join in crafting a story that lights the way forward, guiding the industry toward new ideas, strength, and lasting growth in a world that’s changing fast.

    EaseMyTrip CEO & co-founder Nishant Pitti

    In expectation of the Union Budget 2024, we earnestly expect crucial reforms to strengthen and revitalize the tourism sector. We expect the Government to allow GST input on holiday businesses, a strategic reduction in income tax to catalyze growth in the country’s tourism industry, and the streamlining of the TCS structure to a more favorable 5 percent slab. Additionally, we expect a comprehensive overhaul of tax exemption policies related to Leave Travel Allowance (LTA), urging the Government to consider an annual allowance and the inclusive coverage of the entire tour package cost under LTA, surpassing the limitation to only flight expenses. Predicting the realization of the full potential of domestic tourism, we look forward to a budgetary emphasis on infrastructure development, technology integration, and health-safety measures across airports, aviation, roads, railways, and waterways. Recognizing the vast, underleveraged potential of India’s waterways, which includes sea and river cruising opportunities, we strongly urge the Government to undertake necessary measures for the development of this sector.

    Analog Devices Inc India managing director Vivek Tyagi

    As we approach the Union Budget 2024, we at Analog Devices Inc are hopeful for a forward-looking fiscal roadmap that steers the nation towards technological prowess and sustainable growth. We believe the upcoming budget will play a crucial role in shaping India’s economic development, particularly in emerging sectors like semiconductor, e-mobility, green hydrogen, and renewable energy. Recent commitments observed at the Vibrant Gujarat Global Summit 2024 underscore the industry’s collective dedication to Indian Government’s vision of a ‘Developed India @2047.’

    In this dynamic landscape, we encourage policies that bolster indigenous semiconductor manufacturing ecosystem. The announcements by global players to invest in Gujarat highlight the sector’s potential and the need for a conducive policy environment. We believe that the budget should be a catalyst for nurturing innovation, research, and skill development, particularly in frontier technologies like artificial intelligence, 5G/6G networks and renewable energy.

    As the world embraces the integration of 5G technologies, AI-enabled solutions and sustainable practices, we look to the budget to provide a strategic framework that not only navigates current challenges but also sets the stage for India’s emergence as a global technology and innovation hub. In essence, the forthcoming budget represents a pivotal opportunity for India to fortify its position on the global stage, and Analog Devices Inc remains committed to contributing to this transformative journey.

    Punit Balan Group chairman & managing director Punit Balan

    Last year’s significant boost in the sports budget showcased the government’s commitment to supporting athletic talent. Considering the Paris Olympics 2024 this year, I hope to see a continued emphasis on encouraging and building future stars. Last year’s highest-ever budget allocation was a positive step, and I am hopeful for further measures to bolster the ever-growing sports sector of the country. I hope to see more emphasis on the critical role of Professional Sports Leagues that provide a stable commercial platform, backed by corporates becoming the backbone of sports development nationally.

    This combination of grassroots initiatives like Khelo India and the professional leagues is essential for nurturing talent and ensuring a sustainable ecosystem for Indian sports. As a Sportsprenuer and patronage focusing on developing grassroots and non-cricketing sports especially, I hope the government will support our budding stars, champions and sports deeply rooted in Indian culture to nurture and bring more champions to the international stages. I am sure that the Union Budget 2024 will further elevate & fuel the growth and prosperity of the sports sector.

    Ultimate Kho Kho CEO & league commissioner Tenzing Niyogi

    With last year’s budget marking significant funding for the country’s sports industry, we anticipate the government’s continued support in the upcoming budget to make India a sporting powerhouse. Aligning with the nation’s vision to host the 2036 Olympics under the leadership of our honourable Prime Minister Shri Narendra Modi, we expect a strategic allocation for non-cricketing sports for infrastructure and talent development across diverse sporting disciplines.

    Furthermore, the allocation of funds from NSF is also of utmost importance as it will serve as a catalyst for nurturing grassroots programs and identifying as well as developing raw talent. This will play a pivotal role in paving the way for the creation of future sporting stars who have the potential to secure podiums not just in India but on the international stage.

    Building on the success of Khelo India in junior development and the role of Professional Sports Leagues in providing a stable commercial platform backed by corporates, an increase in the National Skill Development Fund is also imperative. This is not only in line with making India a multisport-playing nation but also with the creation of more opportunities through the PPP model to engage and entice additional corporate participation in the Sports Movement.

    U Mumba CEO Suhail Chandhok

    Building on the strong initiatives of the government to propel the sporting sector over the past year, I am optimistic about the upcoming budget’s potential to accelerate the sporting industry’s growth in 2024. With rapid development of emerging homegrown sports leagues, we anticipate an allocation of funds to elevate their prominence in the country.

    We also hope for a strategic focus on talent identification and grassroots development which to me are crucial pillars for creating a vibrant sports ecosystem. Investing in these areas will not only promote but also contribute to sustainable development of diverse sporting disciplines. We look forward to witnessing the collaborative efforts between the government, corporates, and various sports entities to ensure a brighter, more stable future for Indian sport.

    Yuva Kabaddi Series CEO VIikas K Gautam

    While the previous budget reflected a significant boost, my primary expectation for the upcoming budget is a strategic focus on grassroots development.

    A significant investment is needed in sporting infrastructure especially at the grassroot level. The allocation of funds towards the training of coaches is crucial, given the current lack of infrastructure and the absence of internationally standardized coaching facilities. It is imperative to recognize that only well-trained coaches can cultivate athletes to compete at the international level. Emphasis on holistic development programs, focusing on talent identification and nurturing, nutrition, and sports science, to create a well-rounded ecosystem for aspiring athletes. Transparent allocation of funds, with clear accountability mechanisms in place, can guarantee that the allocated budget is effectively utilized for its intended purpose.

    With these measures, the budget can establish a strong foundation and I am optimistic that this budget will lay the groundwork for India to emerge as a global force in the sporting arena.

    Gamepoint CEO & co-founder Aditya Reddy

    In line with the previous year (11% increase), the overall budget for sports is expected to increase by a double-digit percentage. Given that Prime Minister Modi announced India’s intention to bid for the 2036 Olympics, it is expected that a significant amount will be allocated for capital expenditure to set up and upgrade existing sports facilities. Since  Ahmedabad is being considered as the host city, a large chunk could be planned for new facilities in the city.

    In order to transform the sports sector in India, it is imperative to encourage and incentivize private sports organizations. This can be made possible by reducing the GST on sports services from 18% to 12%, incentivizing the establishment of sports goods manufacturing in India through a PLI scheme for sports equipment, and facilitating access to government, railways, and PSU sports facilities for the general public. If necessary, involving private organizations in managing these facilities under a PPP model can enhance both management and maintenance efficiency.

    Creduce founder & MD Shailendra Singh Rao

    This budget would be a vote on account, hence there wouldn’t be too much of an expectation from the present government. But considering the fact that the election results seem to be predetermined towards a certain party we hope that the present budget takes the good work forward.

    We hope the Climate Change budget is taken forward with more emphasis on nature based Solutions. More job creation opportunities are shared in this process. And most importantly technological advancements are encouraged in this sector which would not only help Bharat but also the world.

    The Hosteller founder & CEO Pranav Dangi

    The travel, tourism and hospitality industry is one of the biggest contributors to India’s GDP. Knowing this, the GOI had in the past put a greater emphasis on the industry’s growth via multifaceted approach towards building air, road & train infrastructure, focused on last mile connectivity, upskilling of Human Resources working in the sector, providing financing opportunities to small and medium sized enterprises, etc. It will be expected of the government to further push for significant improvement in these areas and keep the momentum going towards overall growth of the industry. tive to the industry’s continued, healthy, and sustainable growth. India’s vision of 2047 for a new India cannot be complete without additional and immediate measures for the hospitality industry such as inclusive growth for all (specially women), infrastructural and technological advancements, reducing GST rates to bring it down to comparable rates of 5-6% prevalent in South East Asian countries, providing a single window clearance approval system for granting licenses for rapid development of hotel industry and foster the industry in adding more inventory in the market to bridge the supply demand gap.

    Erekrut HR Automation Solutions Pvt Ltd. co-founder Ravinder Goyal

    As we approach the 2024 budget, the HR sector in India harbours specific expectations, particularly regarding policy reforms that currently pose challenges. A primary area of focus is the streamlining of labour laws, which were characterised as cumbersome, rigid, and difficult to follow. The sector thus anticipates reforms that would simplify these laws, making them more adaptable to the modern workplace, especially in terms of flexible working arrangements and remote work policies.

    The segment could also benefit from the refinement of the Provident Fund (PF) and Employee State Insurance (ESI) schemes. The current structures of these schemes pose administrative challenges and often result in delayed contributions and settlements. An overhaul aimed at simplifying these processes could greatly enhance operational efficiency in HR management.

    Moreover, the HR sector needs more supportive measures to nurture talent, specifically through enhanced tax incentives for employee training and development programs. This would encourage companies to invest more in upskilling their workforce, aligning with the evolving skill demands of the digital economy. Along with this, the expansion of tax benefits under schemes like Section 80-IAC, which currently has restrictive criteria, is desired to enhance accessibility to a broader range of startups.

    In essence, the HR sector’s pre-budget expectations for 2024 revolve around policies that reduce compliance complexity, foster talent development, and support startups through more inclusive and flexible fiscal incentives. These changes are crucial for creating a more dynamic and responsive HR landscape in India’s rapidly evolving economic environment.

    Zoomcar CEO & co-founder Greg Moran

    Last year’s budget paved a path to higher adoption of EVs in India resulting in a sharp shift of customer mental models to make more greener & smarter choices. With the rise of marketplaces and digitisation in India, it is becoming a convenience first nation that is also setting high benchmarks globally. This year as a public listed company, we at Zoomcar anticipate the Union Budget 2024 to pave the way for innovative policies that accelerate sustainable mobility solutions and drive economic resilience which will help customers with cost effective solutions and mobility apps to support the evolution of transportation in the automobile industry.

    Finvasia co-founder & MD Sarvjeet Virk

    As we approach Budget 2024, we anticipate a continued focus on advancing India’s digital public infrastructure, a key pillar for realizing the $5 trillion economy dream. I look forward to enhanced government initiatives fostering financial inclusion benefiting Bharat, not just India. On the tech front, I hope to see further progress in establishing AI Centres of Excellence. There is also a need for more policies to enable public-private partnerships to boost end-use-cases of generative and predictive AI and increase its adoption in India. The fintech industry, as usual, will be the flagbearer of innovation. Government support in terms of policies and funding will be instrumental in propelling the fintech sector to new heights of success.

    VoloFin co-founder & CEO Roshan Shah

    The fintech industry is the backbone of India’s economic growth and resilience. We expect the Interim Budget 2024 to recognize the potential and challenges of FinTech and provide an ecosystem to support and enable it to operate. VoloFin supports the continuous growth of exporters, from SMEs to large corporates, across industries and geographies, and delivers instant liquidity with no collateral through our state-of-the-art technology platform. We hope the government will facilitate the adoption of trade financing, simplify tax and compliance standards, and promote financial digitization and innovation.

    The budget shapes Fintech’s innovation by determining research, technology adoption, and compliance efforts. Adequate budgets enable the exploration of emerging technologies, ensure regulatory compliance, and enhance user experiences. Limited budgets may restrict these initiatives, impacting a company’s ability to stay at the forefront of technological advancements in the financial technology sector.

    SahiBandhu Gold Loans founder & COO Anuj Arora

    Speaking on the ‘expectations or recommendations for the Interim Budget 2024’ Anuj Arora, Co-founder & COO, SahiBandhu Gold Loans said, “We anticipate the Interim Budget 2024 to align with the government’s mission of uplifting the underprivileged and urge the government to introduce beneficiary schemes, especially as the General Sabha election approaches, focusing on the socio-economic empowerment of the marginalized. Acknowledging the FinTech and tech-based gold loan industry’s pivotal role in reshaping financial services, we hope for policies supporting our growth, particularly in Tier 2, 3, and 4 cities, aiming to integrate rural communities into the formal banking system. Incentivizing FinTech dedicated to empowering SMEs through financial and technical interventions would mark a significant stride. Addressing loan disbursement including loans against gold/jewellery, we recommend regulations fostering collaboration between traditional banks and digital lenders for accessible loans. With the budget on the horizon, SahiBandhu Gold Loans, the largest gold loan aggregator platform eagerly anticipates a budget that propels innovation and inclusion in the rapidly evolving FinTech and gold-tech landscape.

    Greendot Health Foods Pvt. Ltd. managing editor Vikram Agarwal

    We are seeking budgetary measures to enhance the competitiveness of the food sector in the international market. Our expectation is for a strategic approach aimed at nurturing growth and fostering innovation, particularly within the domestic snack industry. We request the government to allocate funds for export incentive schemes in the food sector, coupled with subsidies to facilitate overseas participation in major food shows. These initiatives will play a pivotal role in promoting the sector’s global presence and stimulating innovation at home.

    Recode Studios co-founder Dheeraj Bansal

    In the ever-changing landscape of the beauty industry, our startup stands at the center of innovation and consumer demand.  The remarkable increase in demand in the beauty sector has not only promoted our constant expansion but also highlighted the industry’s revolutionary power. As a startup strongly established in the retail sector, our upcoming budget expectations are filled with optimism and visionary planning. Founded on the potential for revolutionary reforms, we are expecting budget policies that recognize the dynamic nature of D2C startups in beauty retail, as well as incentives and support processes that promote experimentation and long-term growth. The anticipated relaxation of company policies and regulations, along with the potential announcement of reduced interest rates for the retail industry in the budget, signifies a promising landscape for easier financing. This budget provides a chance for policymakers to foster positive change within the industry, ensuring that startups like ours continue to add vibrancy, originality, and economic value to the developing landscape of beauty and retail.  By 2030, the e-commerce market is expected to reach $350 billion, growing at a CAGR of 23%.

    Winston India co-founder Himanshu Adlakha

    As the founder of a dynamic D2C startup in the e-commerce space, the upcoming budget is important to our entrepreneurial journey. The e-commerce environment, which is marked by innovation and digital change, eagerly anticipates budgetary measures that promote growth and sustainability. We are looking forward to a budget that not only recognizes the importance of entrepreneurs in the e-commerce market but also provides strategic incentives for our continued growth. The possibility of monetary support for the Open Network for Digital Commerce (ONDC) program is a desirable prospect. This ground-breaking initiative has the potential to empower micro, small, and medium-sized businesses (MSMEs) by providing seamless access to different e-retail platforms. Standardizing data and processes through ONDC would increase productivity and build a vibrant ecosystem for e-retail entrepreneurs. In the modern era of technological advancement, a budget that supports online businesses while also reducing regulatory processes and providing financial incentives will drive our ambitions and contribute to the broadening of the e-commerce industry. As a startup, we are excited about the budget’s potential to be a catalyst for innovation and economic empowerment launching the e-retail sector to new heights of success.

    Unity Group director Mrinaal Mittal

    The sentiment prevalent in the real estate sector in 2024 is propitious after having witnessed an extraordinary growth spurt in 2023 notwithstanding various quandaries like lofty rates of interest. The demand drive and growth rate in residential real estate will be vastly shaped by the verdict of the next general elections. Every year, prior to the budget announcement, the real estate industry expresses its expectations from the Finance Ministry. The agenda remains rather consistent with few basic demands which also include fast tracking the resolution of issues in the real estate sector. Additionally one of the key asks from this budget would be an increase in the tax rebate slab on home loan interest rates to at least twice of what it is presently. Affordable housing will need encouragement in the form of tax holidays to persuade developers to launch such housing projects as schemes introduced during and after the pandemic has expired. As a contributor of about 7.5% to the country’s GDP, our industry is justified in expecting a serious consideration to regulations that will augment the robustness of last year.

    SILA senior VP Hari Kishan Movva

    To stimulate the housing market, it’s crucial to increase the Income Tax Act Section 24’s home loan interest rate rebate from INR 2 lakh to at least INR 5 lakh. This adjustment could particularly benefit budget homes, facing a 20% decline in sales in 2023 due to the pandemic.

    Reviving expired incentives, like tax breaks, is imperative for affordable housing. Modify eligibility criteria, considering the Ministry’s definition based on income, property size, and price. Adjust the qualifying cost for city properties; for instance, raise the budget to INR 85 lakh for Mumbai. This ensures broader accessibility and utilization of government subsidies and reduced GST rates.

    Address the land shortage by releasing government-owned lands for affordable housing. Lands owned by entities like Indian Railways could significantly lower real estate prices when allocated specifically for this purpose.

    Walplast managing director Kaushal Mehta

    As we step into 2024, the construction materials industry anticipates a year of robust growth with strong tailwinds. The sector, pivotal for infrastructure development, envisions a positive trajectory, bolstered by technological advancements, sustainable practices and a renewed focus on efficiency. As we eagerly await Budget 2024, our expectations center around supportive policies that foster innovation, development, sustainability and affordability. A far-sighted budget allocation in an election year can serve as a catalyst for the industry’s growth engine, driving job creation and economic prosperity. Embracing the challenges ahead, the construction materials sector is poised for a transformative year, contributing significantly to the nation’s progress and reinforcing its role as a cornerstone of sustainable development.

    Space Creattors Heights CEO Henna Misri,

    From formidable office settings in austere colors to lively, colorful and quirky offices, the co-working industry changed the way we work. From catering to mostly startups and freelancers to having mammoth corporate clients, flexi offices witnessed a metamorphosis that was further propelled by the pandemic. Over the next three to five years, it is foreseen that the co-working sector, which presently makes up roughly 18% of all commercial real estate utilization in India, would achieve a proliferation rate of 25 to 30%. For an industry growing so rapidly, we are seeking some support and encouragement from the upcoming budget. These essentially include positive tax reforms to support the expansion of our footprint along with lowering of GST rates and clearer standards on electricity tariffs. The creation of a single-window clearance system and a major impetus to infrastructure will also accelerate the entry and operation of coworking spaces in non-metropolitan areas which is the next step in the progression of the co-working and flexi office spaces.

    Space Creattors Heights director sales & operations Aryann Suri

    According to a recent study, co-working spaces accounted for 27% of the net assimilation of 8.2 million square feet among the top seven to eight cities in Q1 2023. The flexi office industry is growing by leaps and bounds and is here to stay. Owing to its flexible work tenets and equitable pricing alternatives, co-working spaces continue to be in high demand and the flexible co-working business is more vital now than ever before. Several corporates and large businesses have also switched to co-working spaces as they have accepted the hybrid work style to meet their organizational needs. Despite a metamorphic rise our industry is a nascent one in all fairness and hence seeks some latitude from the Budget 2024. A lower goods and services tax (GST) for one will appreciably help the coworking industry augment their market presence by attracting smaller players and subsequently grow the revenue collection to the government. Moreover a reduction in the TDS which is at 10% currently will help the key stakeholders to offer assets at better prices to their clients.

    Space Creattors Heights founder & managing director Vipin Suree

    For an industry that contributes 7 – 8 % to the country’s GDP and begets employment only second to agriculture, real estate is a relatively less appreciated and recognized industry. Our sector crested and corroborated a staggering growth rate in 2023 wherein the key property markets indexed an annual growth of 5%, in spite of contentions like record high interest rates and surge in listing prices. We are bullish and expect to see the upswing in demand continue throughout 2024 but there is an expectation of some tangible support from the Finance Ministry. The government must provide momentum and succour to further stimulate the buying thereby encouraging the buyers. Further through the new budget, government has to undertake cogent steps to not just boost demand but also address regulatory obstacles. A single window clearance, tax reliefs and GST rationalization are some of the unequivocal measures that need to be initiated apart from granting real estate the industry status it has long deserved.

    Santaan CEO & co-founder Raghab Panda

    The status of IVF health services and national health systems in the region of 2024 stands as a testament to our collective commitment to prosperity. The Ayushman Bharat program continues to be the cornerstone weaving a safety net for countless lives IVF and that.” it will strengthen health care , ensuring that the dream of parenthood becomes a reality for more families. In addition, national health systems are poised to receive increased funding, which will provide comprehensive health care coverage say Let us believe in the irreplaceable addition of empathy and understanding to health issues.With the availability of ART and Surrogacy Act 2021 and next logical steps include IVF treatment under Ayushman Bharat, programme with state sponsorship and private insurance players will increase the number of couples dreaming of parenthood This entire ecosystem will enable AI, IoT and other innovations for new startups to realize it is in India.

  • Industry hails doubling of digital allocation

    Industry hails doubling of digital allocation

    MUMBAI: One of the key points that came out of Finance Minister Arun Jaitley’s Union Budget 2018-19 was the focus on Digital India. The allocation was doubled to Rs 3073 crore and the budget was clearly beyond wooing voters.

    The government has decided to increase digital intensity in education and technology will be the biggest driver in improving quality of education. Jaitley aims to move from blackboard to digital board schools by 2022.

    About Rs 14.34 lakh crore is to be spent on rural infrastructure. According to the budget, five lakh Wi-Fi hotspots will be setup to provide broadband access to five crore rural citizens, at the cost of Rs 10,000 crore.

    ALTBalaji CMO Manav Sethi said, “It’s a great effort from the government if it’s executed well for connectivity. It is easier but more relevant to connect small villages and towns in India on Internet rather than roads. This connectivity has the potential to impact not only India’s entertainment options but their means of livelihood, healthcare and education.”

    HAL Robotics MD Prabhakar Chaudhary says that the government has understood the need and capability of technology. “It’s great to see that the government is recognising future technology for building the nation’s future. Not only does this help in job creation but also advances the nation in competitive global space.”

    Instappy founder & MD Ambika Sharma believes the move with empower society in areas like broadband and mobile connectivity. “Furthermore, the allocation of Rs 10,000 crore for the five lakh WiFi hotspots to provide broadband access to five crore rural citizens is also promising. With nearly 70 per cent of the country’s population living in rural and semi-urban geographies, the move will give the vision of a digital India a big boost and provide businesses an opportunity to upscale.”

    Staqu CEO and co-founder Atul Rai believes that this year’s budget has not only taken significant steps towards the digital India vision but also towards inculcating the latest technologies like artificial intelligence for the national development. He said, “With NITI Aayog to establish a national programme for artificial intelligence, we look forward to supporting the nation with R&D support and more programmes like ABHED which is already assisting the polices forces with AI capabilities. With the advent of new technologies and the Indian government being equally eager to adopt them, we strongly foresee the nation to be on the road to transformation and emerge as one of the leading digital nations on the world map.”

    Said BARC India CEO Partho Dasgupta: “Budget 2018 is clearly focussed on driving rural sector growth. This should result in higher rural incomes and therefore higher standards of living in rural India. Our baseline study indicated that economic prosperity and higher living standards go hand in hand with TV penetration and higher TV consumption. With only 2/3rd of Indian homes having access to TV, there is huge headroom for growth here, and this year’s budget should help drive up TV ownership and consumption in rural India. As head of a tech-driven research company, I am also excited to see government’s focus on machine learning, artificial intelligence and other such technologies of the future. One dampener for industry is the hike in basic customs duty on certain electronic equipment including LCD/LED/OLED screens, which would make TVs more expensive. Our barometers too are likely to get more expensive, and this will raise burden on industry for our planned panel expansion.” 

    Contradictory to that, nexGTv COO Abhesh Verma opines thinks that doubling the budget for the digital India scheme will be emerging as a major move towards assisting the nation to progress further. He commented, “The second development of investment of Rs 10,000 crore for rural Wi-Fi hotspots, giving five crore citizens access to broadband speed internet by the deployment of five lakh Wi-Fi hotspots should help bring more consumers online, increasing digital consumption of services like OTT, entertainment, banking, and e-commerce. We at nexGTv feel that all these steps are a definite plus for the significant growth of the digital businesses in the country.”

    In the same track, News18.com editor language Nidheesh Tyagi feels that Arun Jaitley has really shown this government’s serious emphasis for digital India. He said, “An extra Rs 10,000 crore is provided to bring 50 million people through five lakh wifi hotspots in rural areas to this side of the digital divide. I am sure much of this action is going to happen in languages. We hope to see more use of digital payment through mobile spreading in the tier 3 / 4 towns and villages besides more connectivity on mobile, broadband and access to government services. Digitisation of agricultural markets will also benefit some 300 million farmers.” But he feels that more could have been achieved by reforms in telecom sector.

    Haptik founder & CEO Aakrit Vaish has a similar opinion as Rai. He commented, “With NITI Aayog to establish a national programme for AI, this will not only significantly aid job creation but will also assist the government to move towards its vision.”

    Government will take measures to stop cryptocurrency circulation, as it is not considered legal tender. Jaitley proposes use of blockchain technology to encourage digital payments and curb the use of cryptocurrencies, setting up of a national programme to encourage AI and providing easy internet access to villages.

    Also Read:

    Industry holds bright outlook for budget 2018

    Union Budget 2018:  Populist budget fails to excite industry at large

    Guest Column: M&E sector pins hopes on a developmental budget

  • Digital industry celebrates Union Budget 2018

    Digital industry celebrates Union Budget 2018

    MUMBAI: The Union Budget for 2018 that was finally unveiled yesterday turned out to be a rather disappointing one for the industry at large but Digital India and digitisation got prime time attention. The budget focused on the middle class and rural population, guided by the mission to strengthen India’s agriculture, rural development, health, education, employment, MSME and infrastructure sectors.

    With a view to promote digitisation, the government is set to make the necessary investment in robotics, internet of things (IoT), artificial intelligence (AI), digital manufacturing and big data analysis with the NITI Aayog to establish a national programme to direct efforts in artificial intelligence. The government has committed itself to the development of technology along with concentrating on AI and its applications, a revolutionary move for the digital industry. The ministry has decided to double its Digital India budget to around Rs 3073 crore. 

    The Indian media industry seemed to have mix reactions about this year’s budget and while some were disappointed, many seemed cheerful about it and considered it to be a welcome budget. 

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    Like the last few years, 2018 Union Budget too saw a dry spell for the entertainment industry with no big announcements. However, the government’s Digital India push by proposing to set up 5 lakh WiFi hotspots in the rural areas will pave the way for greater consumption of entertainment and news related content. It will also provide a boost to regional content, which is already expected to grow multifold in the coming years. Overall I would say the biggest positive highlight of this year’s budget was focused on agriculture and healthcare. This initiative will definitely help the marginalised part of our country in the long run.

    Dharma Productions CEO Apoorva Mehta
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    It was an expected budget. I think that it was widely believed the government would focus on the rural economy and so it came to pass. There was not much expected for the media and entertainment industry and there was nothing specific announced. Corporate India would be slightly disappointed though as corporate taxation was not reduced except for small enterprises. Aviation and farming were the big winners.

    Mukta Arts managing director Rahul Puri
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    Budget announcements signal a stronger ecosystem for media and broadcast industry. In continuation with my pre-budget expectations, I am happy that FM has kept his promise by reducing corporate tax rate to 25 per cent.

    BTVI COO Megha Tata
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    While the budget largely focuses on the upliftment of agricultural sector, there is an equal focus on technology by introducing national programme in the area of AI & exploring ways for using the blockchain technology for digital transactions. The emphasis on sectors like healthcare, education & skill development is a good step by the govt. Reforms in the education sector encourage more & more private institutions to expand or modernise to give students a more global perspective as part of their learning process, which also helps in tackling brain drain. Overall, the budget seems like a typical socialist one, without much to take-away for the common-man.

    Havas Media Group CEO India and South Asia Anita Nayyar
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    I’m glad to see that the budget for digital India has doubled and also the fact that AI and Blockchain technologies will be used by the government. But I’m disappointed that government is looking to put an end to cryptocurrencies. Globally cryptocurrencies is a phenomenon which points towards the future of currencies and maybe a more inclusive view was needed.

    WATConsult founder and CEO Rajiv Dingra 
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    The budget has focused on the right areas, particularly the rural and agricultural sector, which is definitely going to spur rural demand in the coming months and years. The rural economy needed a boost. I also like the fact that the Finance Minister has focused on ease of living rather than just ease of doing business and has introduced healthcare benefits which will benefit nearly 50 crore Indians. It is a landmark step. The emphasis on digital, particularly higher-end digital areas like artificial intelligence and usage of blockchain shows that the government is committed to providing a further digital thrust. The steps being taken, like provision of free WiFi and other forms of internet to all parts of the country will be extremely beneficial in the long run for the digital sector. It will help agencies like ours who are partnering clients for digital transformation.

    The introduction of the long term capital gains tax on equities will soon be digested by the industry I’m sure, but in some ways, I see a missed opportunity because the simplification of GST processes for the services sector would have gone a long way to help the advertising industry. The advertising industry doesn’t mind paying the taxes but abhors non-productive, complex procedures including filing of hundreds of returns every year. Overall I think the right sectors have got the incentives and therefore it should be good for the country.  If it is good for the country, it will be good for the economy and once the economy grows, the advertising sector will benefit from it.

    Dentsu Aegis Network chairman and CEO South Asia Ashish Bhasin
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    The ‘Digital India’ program has received a major boost with double the allocation of  Rs. 3073 Crore for the coming year. Budget 2018 has proposed the set-up of 5 lakh Wi-Fi hotspots in rural areas thereby providing broadband access to 5 crore rural citizens. Much to the delight of digital media players, this move will open extended avenues for them and give a strong push to regional and mainstream digital content in these markets. With extensive broadband penetration, affordable data prices and smartphones, the vision for digital India could well come to fruition in the coming years. Lastly, the estimated over 7% growth for the next fiscal creates a positive sentiment for India’s economic and financial ecosystem.

    Worldwide Media CEO Deepak Lamba  
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    In the Union Budget 2018, there has been a significant allocation towards rural development. The proposal of setting up 5 lakh Wi-Fi hotspots in rural areas will give impetus to media penetration in Tier 3 and Tier 4 markets. Media players are increasingly looking at Tier 2, Tier 3 and Tier 4 markets since regional content has begun to drive media growth. So, the infrastructure push in these regions will accelerate media consumption and inadvertently help the advertisers and the advertising business on the whole. I would certainly say it is a good budget, and we will gradually witness the positive results unfold in the future.

    TV18 president- revenue & Forbes India CEO Joy Chakraborthy
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    Government’s focus on rural and agriculture development, digitisation and digital education is going be a big demand booster for our sector. The rural demand for FMCG, beverages, automobiles, education and financial products are going to increase, this would increase advertising budgets of our clients from FMCG, education, financial services sectors. Government’s focus on digitisation brings in lots of rich data for us to better targeting for our customers. This focus would make India data rich country and the targeting and conversions on digital marketing front would be much easier and more accurate.

    Vertoz fand CEO Ashish Shah
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    FM Jaitley’s budget this year focuses on investments to be placed in artificial intelligence, machine learning and the Internet of Things with the NITI Aayog establishing a national program to direct efforts in artificial intelligence. The government has committed itself to the development of technology along with concentrating on AI and its applications which is a revolutionary move for the digital industry. Initiatives on infrastructure growth and education expansion have been looked at from a digital perspective, which reflects the significance of the ‘Blackboard to digital board’ movement. Decisions benefiting rural citizens–such as 5 lakh WiFi spots, give it a further impetus. Another game changer mentioned in this budget was the government’s will to proactively explore the use of blockchain technology. The allocation of digital India has been doubled which indicates the government’s emphasis on digital, heralding a stronger digital economy. I believe this was a great budget for the digital ecosystem.

    DAN Performance Group CEO Vivek Bhargava
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    The much-awaited announcement of Union Budget prompted a gust of anticipation & higher expectations. While the Finance Minister touts the Union Budget as primarily focused on the agricultural sector, it sure reeks of reforms beneficial for numerous other sectors as well.

    The government has always encouraged the digital sector to flourish & the budget rightfully justifies their farsighted approach. This year the allocation to Digital India Scheme has been doubled to Rs 3073 crore which is a worthwhile move for the industry as a whole. Not only that, with the onset of fast-paced technology and AI shaping the new segment of digital World, NITI Aayog will establish a national programme for it. This is a clap-worthy reform which will help organisations diversifying with AI to have a wider scope with vast awareness among everyone.  For a higher internet penetration, 5 Lakh Wi-Fi hotspots will be set up in rural areas, which again is beneficial for the rural dwellers. The need to eliminate cryptocurrencies which are funding illegitimate transactions was also mentioned. The government has proposed to revamp the system of sanctioning loans to SMEs. As per the budget reforms now the information will be linked with GSTN & will be fetched from the same. This comes across as a welcome move as not only will it streamline the process but will enable people to get accustomed to the digital ingress. Corporate companies with a turnover of up to Rs 250 crore will also be highly benefitted from the budget as the corporate tax has been further reduced to 25 per cent.

    As per my opinion, the Union Budget has surely set a benchmark & the year looks promising with excellent reforms leading to growth & development of the economy.”

    iCubesWire CEO and founder Sahil Chopra
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    This is an excellent budget from the digital perspective. As expected, the government has doubled its allocation to digital India initiative at Rs 3073 crore. This will grow the entire digital economy and the government has shown that this is going to be focus area. Its commitment to exploring blockchain and AI only ratifies its vision for digital India. The other game changer is enhancing rural regions with 5 lakh Wifi hotspots. This would lead to higher adoption, skills upgrade and rural citizens embracing digital quickly. This budget gives me hope that we are on our way to becoming a digital-led economy.

    Tonic Worldwide founder and CEO Chetan Asher

    Also Read :

    Industry holds bright outlook for budget 2018

    Union Budget 2018: Industry expects govt to favour consumption

    Is India ready for the impact of AI on marketing?

    A year after demonetisation: E-payment services emerged winners 

  • Union Budget 2018: Populist budget fails to excite industry at large

    Union Budget 2018: Populist budget fails to excite industry at large

    MUMBAI: The Union Budget finally arrived today with all eyes fixated on Finance Minister Arun Jaitley. He presented his fifth Union Budget, which was also the last one for the Modi government before India sets out to choose its new prime minister next year. Riding on optimism, different research firms, news broadcasters and media companies kept speculating for about a month on what exactly should this year’s budget hold for India.

    While the Union Budget 2018 was essentially a populist budget as Lok Sabha elections are due next year, it turned out to be a rather disappointing one for the advertising and media industry but it was a big thumbs up for Digital India and digitisation. The budget focused on the middle class and rural population, guided by the mission to strengthen India’s agriculture, rural development, health, education, employment, MSME and infrastructure sectors.

    With a view to promote digitisation, the government is set to make the necessary investment in robotics, internet of things (IoT), artificial intelligence (AI), digital manufacturing and big data analysis with the NITI Aayog to establish a national programme to direct efforts in artificial intelligence. The government has committed itself to the development of technology along with concentrating on AI and its applications, a revolutionary move for the digital industry. The ministry has decided to double its Digital India budget to around Rs 3000 crore.

    The ministry has also proposed to set up 5 lakh Wi-Fi hotspots to give access to 5 crore rural citizens, which means digital and internet penetration into smaller pockets of the country will result in increased data consumption across India. The move will help brands, agencies and OTT players to create target content for such markets.

    In a move to regulate the cryptocurrency market in India, Jaitley said that the government would take essential measures to eliminate the use of crypto assets in financing illegitimate activities. He, however, maintained that the Indian government will explore the use of block chain technology proactively to usher in the digital ecosystem.

    Jaitley also announced the allocation of Rs 10,000 crore for creation and augmentation of telecom infrastructure. He also noted that micro, small and medium enterprises (MSME) are a major element for growth and mass formalisation of the MSME sector is slated to happen after demonetisation and GST, which took place in 2016-17.

    In what turned out to be the world’s largest government-funded healthcare programme, Indian ministry will launch health scheme to cover 10 crore poor families. The flagship national healthcare protection scheme of the government will provide upto Rs 5 lakh per family per year for secondary and tertiary care hospitalisation of members.

    The television and handset companies did receive a blow as mobile phones are now set to become costlier as the custom duty on them has been increased to 20 per cent. The move comes with an aim to promote the government’s ‘Make in India’ initiative.

    Customs duty on crude edible vegetable oils such as groundnut oil, safflower seed oil has been hiked from 12.5 per cent to 30 per cent while on refined edible vegetable oil it has been hiked from 20 per cent to 35 per cent. Customs duty on imitation jewellery’s been increased from 5 per cent to 15 per cent in 2016 to 20 per cent now with duty on sunglasses, cigarette lighter, toys, bus and truck tyres, select furniture also seeing a similar hike. The import duty on smart watches, wearable devices, footwear has now been doubled to 20 per cent whereas the duty on LCD/LED/OLED panels has been hiked to 15 per cent. The import of solar-tempered glass for manufacture of solar cells will be exempted from customs duty.

    While the health and education cess has been increased to 4 per cent, the aam aadmi who was positive about having to pay less tax will be disappointed as the government did not propose any change in the tax slabs for the salaried class this year.

    Also Read:

    Industry holds bright outlook for budget 2018

    Union Budget 2018: Industry expects govt to favour consumption

    Is India ready for the impact of AI on marketing?

    A year after demonetisation: E-payment services emerged winners 

  • Industry holds bright outlook for budget 2018

    Industry holds bright outlook for budget 2018

    MUMBAI: With the D-Day already here, the media and entertainment industry is keeping its fingers crossed after a difficult year that bore the full brunt of the introduction of GST. With things settling and the general elections not too far away, a more populist budget is expected from FM Arun Jaitley and his ministry this year. While all eyes will be on the fiscal consolidation roadmap and borrowing plans, the government’s action plan for ease of doing business will be in sharp focus.

    Indiantelevision.com asked industry veterans for their views on what’s likely to transpire during the mega event today. This is what they had to say:

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    “This is the last budget before the general elections, I think it will be a populist and a good budget. It should help the spending and the overall industry which will directly help advertising.

    Broadcast industry went through a major cyclic process when demonetisation and GST happened. With helping the advertising industry this budget will bring good growth to the media industry as well. It will also help in increasing the consumption, expenditure.

    Over the sentiment will get better, India as a country is very sentiment driven. If the budget is good, the general public will also be happy and half the things are taken care.”

    — TV18 president-revenue & CEO Forbes India Joy Chakraborthy
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    “Entertainment and media industry is not just a participant but also carrier of digital revolution in the country.  Therefore, policy makers should step up to rationalise the taxation aspects impacting digital ecosystem.  Towards this end, clarification may be provided on applicability of Rule 9A of the Income Tax Rules to income from sale of digital rights of feature films certified for theatrical exhibition.  Also, with the growth in production, distribution and consumption of ‘web only’ content, provisions similar to those for feature films may be applied or at least clarity may be provided on its deductibility as revenue expenditure.  

    Though India is one of the large cinema markets around the world when it comes to admissions, the market in tier II and tier III cities still remains underserved given the limited number of screens.  A weighted deduction may be provided for developing, maintaining and operating single screen theatres or multiplexes in such tier II and tier III cities.

    GST was introduced with an intention to subsume multiple taxes levied by the State and the Union.  This had come as a major relief to all the industries including the media and entertainment industry, with of course, industry discomfort on the rate of GST is undeniable.  However, many states (like Tamil Nadu and Gujarat) have started imposing local body entertainment tax on movies. Levy of local body entertainment tax on movies exhibited defeats the whole purpose of GST.  Therefore, the government should either remove the levy in itself or at least put a minimum cap on exhibition of movies.”

    – PWC partner-India entertainment and media sector leader Frank Dsouza
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    “Now that the GST jitters are receding and GDP growth rebounding to 6.3 per cent in Q2 of FY 2017-18, I am confident about growth of broadcast industry in FY 2018-19. Having said that, I wish to see average GST rate for media and entertainment sector be brought down from existing 18 per cent to pre-GST levels of 15 per cent. I am hopeful about Finance minister keeping his words by reducing the corporate tax rate from 30 per cent to 25 per cent as promised by him in the union budget 2015-16 speech.”

    — BTVI COO Megha Tata

    public://Vikas Khanchandani.jpg“The M&E industry will continue on its exponential growth path as we get high speed data connectivity and the corresponding data costs continue to decline. Data growth has risen on the back of high video consumption on the go and will continue to play a pivotal role for growth in both M& E and Telecom sectors. Keeping in mind the expected growth, one long -pending wish I have from the Budget is the recognition of the M&E industry as an integral part of the Infrastructure sector so that it can avail of the various benefits and incentives that are given to the Infrastructure sector. This includes better financing options, to help boost the capital investments needed in digitisation and digitalisation, technology upgradation and new technology development and deployment. The net benefit of all of the above will always flow back to the consumer.”

    — Republic TV CEO Vikas Khanchandani
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    “To realise the Digital India dream, it is important to promote broadband. MSO are the best to roll out faster Broadband being already have fibre reaching homes, building, society etc. Being high capex requirement of business, the industry expect that Budget will give relief to Industry by removing the AGR.”

    — GTPL Hathway Ltd head-investor relations Piyush Pankaj

     

    public://Rahul Puri.jpg“The budget for 2018 will be a greatly important budget as the elections for 2019 are only a year away. I think there will be some changes to the direct tax structure this year as indirect taxes were given the biggest ever overhaul last year in terms of the introduction of GST. I also feel that there will be increased spending on infrastructure likely to be announced this budget as the government looks to employ some populist measures with one eye on elections.
    As for the entertainment industry, I hope some clarity comes through on GST with relation to multiplexes as it’s important that the industry sees consistency. I also am hopeful that as the government looks to help increase infrastructure capacity, the multiplex and retail segments get a much-needed boost.”

    — Mukta Arts & Mukta A2 Cinema MD Rahul Puri
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    “Transparency was one of the declared objectives of digitisation and this has been achieved with the efforts and investments by MSOs and operators. Today, majority of the benefits of transparency flows to the government and broadcasters. It’s time that the government recognised the contribution of small entrepreneurs in establishing this industry, the reality that television is much more than entertainment, and the need to share the benefits of transparency with MSOs, operators and consumers by way of overall reduction in taxes to the sector.”

    — KCCL CEO Shaji Mathews
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    “From a personal standpoint this will be an interesting budget to see how economic reforms and political compulsions are balanced. But from an industry stand point I’m hoping that digital transactions and e commerce get a positive deal and in effect making them further appealing to consumers. If done it will be a game changer for Digital India.”

    — The Glitch co-founder and content chief Varun Duggirala

     

  • Union Budget 2018: Industry expects govt to favour consumption

    Union Budget 2018: Industry expects govt to favour consumption

    MUMBAI: Union Budget 2018 has snuck up on us. This Thursday, the government will unveil its budget for fiscal year 2018-19 and many market watchers are expecting a slew of incentives for businesses. After a difficult year, some course correction is certainly on the anvil. Here’s what some of the leaders in the industry had to say:

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    “In the rapidly changing landscape, we believe that the distinction between telecom, IT and broadcasting technology has disappeared and that a convergence of these sectors is required. A positive consideration of this demand in the 2018 budget will certainly help in the rapid growth and generation of substantial employment in our country. Also, similar to the telecommunications sector, television broadcasting organisations including direct-to-home (DTH), cable services and headend in the sky (HITS) require huge investments in setting up technology and distribution networks and, as such, are ‘asset-rich’ organisations. Hence, just like in the software and telecom sectors, it is necessary to allow for the carry-forward of losses in the case of amalgamation or merger of companies in the broadcasting sector.

    For the budget 2018, we are also hopeful that the government will issue a clarification stating that transponder hire charges are not ‘royalty’ in order to avoid protracted litigation.” 

    — Indian Broadcasting Foundation president Punit Goenka 
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    “I anticipate that the Union Budget of 2018 will drive growth and whenever the economy grows, the advertising industry benefits. I see a particular thrust from the government in the areas of infrastructure development as well as for rural development. We have had a reasonably good monsoon, rural economy is starting to look up and another push in the same direction  will significantly benefit all consumption-led sectors, including FMCG, which are heavily advertised.

    I think the government will make efforts  to ensure that there is more money in the pockets of the common man, hopefully by giving some relief on the income tax front and will use technology for better tax compliance, thereby keeping the fiscal deficit under control. The fiscal deficit is very important from the point of view of controlling inflation.

    Specifically for the advertising industry I hope that there are some simplifications around the services part of GST that are announced. While GST has been a progressive step for the country, my feeling is that the services sectors  were relatively less focused upon and hence the step that was supposed to simplify indirect taxation has actually ended up complicating it significantly, particularly for advertising agencies that operate out of different cities and states and service clients who may be based all over the country. Under the thrust of the government for ease of doing business, I hope this issue gets addressed. The advertising industry doesn’t mind paying the taxes but needs simplification of processes, which are taking away too much of unproductive manpower and blocking working capital.

    Over all I feel that India is poised to see  good economic growth over the next 10 years and a little bit of help from the government policies, through the Union Budget of 2018 will further help the economy outperform the rest of the world.”

    —     Dentsu Aegis Network chairman and CEO (South Asia) Ashish Bhasin
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    “The announcement of Union budget is just around the corner with discussions & debates being conducted around it. There is hush-hush regarding the assumptions when everyone is expecting a positive release. As far as digital is concerned, besides the allocation of budgets on Digital Infra Development, there is a need to initiate a few reforms. Digital is the fastest growing sector of India and should be highly benefitted from the Union Budget.

    As per my understanding, budgets should be allocated to PSUs for investing in digital marketing. This will lead to a win-win situation as for the organisation the digital mediums will help gain recognition and support. While the digital agencies will spread awareness and educate the audience about the benefits of the organisation. Even the digital organisations paying taxes dutifully should be recognised well and given the right opportunities to flourish.

    Even on a personal level, the entrepreneurs who are platinum taxpayers should be given certain advantages as a reward for their contribution towards the nation. Any individual paying heavy taxes on time should be entitled to such benefits which could be in the form of a card similar to the other identity cards we have. This will not only be a welcomed move, but it will also ignite the zeal among the others to be a part of that category thereby benefitting the country.

    However, what the budget is going to be will be interesting to witness and I hope for some reforms that help the digital sector in various ways.”

    — iCubesWire CEO and founder Sahil Chopra
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    “Given the NDA Government’s strong intent to drive reforms, we definitely anticipate some rationalisation in tax structures and strengthening of related  infrastructure. While the GST council has already taken some proactive measures, we hope the Government will reemphasize on a roadmap for simple and business friendly GST compliance and administration systems. More importantly, over the course of next few months, initiate all necessary constitutional amendments to ensure that there are no other State or Local Body Taxes, as they defeat the very purpose of bringing uniformity in tax structure, while ensuring proper input credit for taxes. 

    For the accelerated growth of the start-up sector and economy at large, it’s important that the push for digitisation should continue with more vigour. Initiatives by the Government including waving MDR on debit cards on transactions upto Rs 2,000 really go a long way in attaining this objective and we hope, on similar lines in post-budget period, rationalisation mechanisms are introduced around credit cards rates as well–which will continue to be a major mode of payments. UPI should be made more cost effective and should be given a much larger push to increase its adoption in India. 

    We do expect the Government to take up and address IT infrastructure and allied issues this year, taking into account some serious issues that are being faced by the entertainment/media sector such as Piracy. The IT laws must be strengthened to address the root cause for these issues that are constantly causing a substantial hit to the overall revenues for the sector.” 

    — BookMyShow head of finance Mitesh Shah  
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    “In this budget, we look forward to the government focusing on the upliftment of the rural economy and job creation. 49 per cent of the Indian population is engaged in the rural economy. More money in their hands will lead to rebalancing of media spends by corporates that provide goods and services to the rural market. This will be a positive for the advertising industry.”

    —     iProspect India CEO Rubeena Singh
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    “India’s hospitality industry is one of the key drivers of growth of its service sector. With a turnover of USD 71.53 billion in 2016, it accounted for 9.6 per cent of GDP and was the third largest foreign exchange earner for the country. The sheer volume of business it is generating makes streamlining GST on hospitality imperative for Budget 2018.

    Government has somewhat eased its taxation policy by downward revision of rates or rationalization of tax slabs, however, a more detailed approach for resolving issues that still plague GST is required. For instance, IGST in not available to Hotels, tax is calculated on declared rather than actual tariffs, luxury travel and stay are taxed at considerably higher rates, food and beverages sector suffers from the loss of input tax credit, all of which increase costs for end-users and subliminally disincentivises consumption. With experts predicting overall industrial growth between 100 and 200 per cent in next couple of years, 2018 should see a significant expansion in HORECA industry; hence it would be highly beneficial if government would fuel this growth with some planned tax benefits.

    Hotel industry is highly capital intensive. Granting infrastructure status to this sector would enable hotels secure long term loans at competitive rates, which would help reduce room tariffs. Facilitating loan availability to small and medium enterprises under Mudra scheme with easier accessibility and larger outlays and granting tax benefits to remote businesses can further help the industry.

    In addition, leading hospitality industries around the world revolve around a core group of highly skilled individuals – an area where India still lacks. Benefits of creating and maintaining a talent pool of skilled manpower would be significant. Were government to allocate some portion of the budget to this area, it would go a long way in making India the global leader in the hospitality sector.”

    —Pursuite.com CEO Amit Shukla