Category: Specials

Budget ’17: SAP enables mid-sized cos to go digital

MUMBAI: Aligning to the Union Budget 2017, SAP SE announced the launch of SAP S/4HANA Private Cloud, the next generation business suite tailored for midsize companies, which will be available at a simple and affordable subscription pricing.

With increased impetus for digital, cashless transactions and a unified, transparent taxation regime, companies will need to gear up for rapid growth while balancing business control with the agility to capitalize on emerging opportunities. With SAP S/4HANA Cloud, private edition, midsize companies will benefit from the innovation, flexibility, and functionality of SAP S/4HANA enterprise management solution and derive the benefit of effortless scalability, ease of implementation and management.

The SAP S/4HANA Private Cloud will provide the perfect platform for businesses that are at the cusp of making strategic shift to digital. Available in a modular subscription pricing without any upfront capital investment, this solution offers enterprise-caliber data security and faster time to value allowing SMEs to go digital within weeks on predefined services.

“The recommendations in the Union Budget 2017 are tailored to accelerate growth for midsize companies,” said SAP Indian subcontinent president and MD Deb Deep Sengupta. “Our commitment, through SAP S/4HANA Private Cloud, is to provide each and every Indian business the opportunity to tap into the power and potential of SAP HANA as they pave the way towards a pervasive digital business.”

From standard business processes to deep industry-specific functionality, companies of any size can now take advantage of SAP’s 40+ years of experience delivering solutions for businesses in every industry.

February 8, 2017
Budget ’17: Rural net will facilitate travel bookings

MUMBAI: The union budget has broadly focused on themes such as the farming sector, the tourism industry, development of road network, and infrastructure. The high speed internet connectivity in rural areas will now be the biggest advantage to the travellers.

This is the first time the railway budget was merged with the general budget. One significant announcement was the fencing project on the Delhi-Mumbai and Delhi-Howrah routes which is expected to cost around Rs 45 lakh per km. Other announcements included track and signalling upgradation and elimination of unmanned level-crossings along the two major routes at an estimated cost of Rs 21,000 crore.

Royal Caribbean Cruises exclusive India representative TIRUN CEO Ratna Chadha said, “The union budget we hope will have a positive impact on the tourism industry which is a great employment generator, resulting in a significant multiplier effect on the economy. We are happy to see infrastructure development at airports in tier 2/3 cities, as most of the aspirational India resides here.”

Online travel industry enabler Travelyaari co-founder and CEO Aurvind Lama said, “The union budget presented a progressive outlook with due importance to infrastructure development and tech development. The investment proposed in building national highways along with developing road network is a welcome step.”

Lowcostdepartures.com’s new avatar Travkart.com co-founder Gursahib Singh Sethi said, “For increase in railway connectivity to the remote areas and upgradation of airports in Tier 2 cities, a huge number of people will be able to travel smoothly from Tier 2 and Tier 3 cities. The high speed internet connectivity in rural areas will be the biggest advantage to them. This will help them to do more purchasing and online bookings. Enlarging the tax exemption bracket would be a crucial factor in people’s saving. This will increase their budget to travel.”

Sales enablement services provider Denave global CEO & co-founder Snehashish Bhattacharjee said, “Union Budget 2017 is mostly in line with the long-term economic development strategy of the present government. For the retail/ FMCG segment, highway and road infrastructure focus will work well in tandem with the advantages of the GST implementation. This will also go a long way in allowing development of tier3/satellite towns closer to the Tier1/tier2 cities and thereby a little more even distribution of population across tiered cities and rural areas. The sops towards getting closer to a cashless economy (digitisation sops, BHIM app and Aadhaar Pay drive, removal of service charges on e-ticket booking etc.) will help get closer to the 3% fiscal deficit goal by FY’19.”

February 7, 2017
MIP ’17: Nippon TV gears up with two scripted, three non-scripted formats

MUMBAI: Having recently been crowned ratings champion for the third consecutive year in Japan, coupled with the tremendous success of its scripted drama Mother which has received numerous offers from around the world and is a ratings success in Turkey as ANNE, Nippon Television Network Corporation (Nippon TV), the leading commercial broadcaster and network in Japan offering entertainment, anime, documentaries and news, announced that the company will be heading to MIP 2017 with five new formats.

The titles include two scripted formats which are based on successful Nippon TV dramas: Your Home Is My Business! (60 min eps.) and Lost ID (60 min eps.), in addition to three non-scripted formats: Meet Me There (60 min eps.), Ghostwriter To The Rescue (30 min eps.), and Grab The Chance (60 min eps). The announcement was made by Nippon TV president – International Business Development Atsushi Hatayama who also announced that given all of Nippon TV’s recent success the company will be moving to a new booth #P1F55 at this year’s MIP-TV.

“We could not be more proud to be the top-rated broadcast network in Japan for three consecutive years,” commented Hatayama. “As evidenced by the success of Mother, as well as the five new formats we are unveiling at MIP-TV, we at Nippon TV are constantly adapting to the needs of all buyers around the world, including the digital platforms, where the need for formats, especially scripted formats, is at an all-time high.”

The first scripted format, Your Home Is My Business!, is based on the successful drama series of the same name on Nippon TV. The series follows a real-estate saleswoman who is known for closing the deal no matter who the client is. She pries into the private lives of her clients, uses a vast range of tactics, and always finds them just the right home achieving a 100% success rate.

The second scripted format is Lost ID based on a Nippon TV drama series. This drama is about a brilliant system engineer whose identity disappears completely. His name on the official family registry and certificate of residence has been changed, his bank accounts seized, and his employment terminated. Left with nothing but loneliness, he refuses to give up no matter what the outcome.

Three non-scripted formats are next for Nippon TV. First is the docu-reality series Meet Me There. Every couple has a special place that marks a turning point in their love story. But as months turn into years will two people still share the same memory? If you receive a handwritten letter from your loved one with the words “Meet Me There” where would you go?

Ghostwriters To The Rescue stars celebrities who have made a name for themselves for being funny, romantic or dramatic. In this docu-entertainment format, these celebrities will come to your rescue to help with what to say or do dhttp://www.indiantelevision.com/nice-terror-attack-cannes-and-the-palais-des-festivals-160718uring a special time. In your ‘spotlight moment,’ they will ghostwrite the most important script of your life.

Rounding out the non-scripted titles is Grab The Chance, a docu-entertainment format which grabs people off the street and gives them the chance to say “yes” or “no” to once in a lifetime opportunities. From bungee jumping in Macau, to swimming with dolphins in Hawaii, to skydiving in California, Grab The Chance offers the ultimate life-changing experience.

Also Read:

MIPCOM 2016 sets new records

Amit Goenka receives honour at MipTV 2016

Nice terror attack, Cannes and the Palais des Festivals

February 7, 2017
Budget ’17 initiatives will drive overall demand, believe startups

MUMBAI: Startups are in a celebratory mode after the presentation of the Union Budget 2017 by the finance minister Arun Jaitley. He announced that small businesses with an annual turnover of Rs 50 crore will now have to pay five per cent less income tax, in order to make micro, small and medium enterprises (MSMEs) more viable.

This brings down their income tax level to 25 per cent. The profit linked deduction available to the start-ups has changed to three years out of seven years.

For the purpose of carrying forward of losses in start-ups, the condition of continuous holding of 51 per cent of voting rights has been relaxed. However, this is subject to the condition that the holding of the original promoter/promoters continues.

On the issue of removal of Minimum Alternate Tax (MAT), the FM opined that it is not practical to remove or reduce MAT at present though, he has proposed to allow carry forward of MAT up to a period of 15 years instead of 10 years at present.

The government also plans to spend Rs 2.44 lakh crore for small business loans.

Media Konnect founder and CEO Ranjit Thakur said, “After being overlooked for almost two years, the media & entertainment industry has finally come to the fore in this Union Budget. Post-demonetisation, the budget focuses on paving the way for entrants and helping in sustainability of businesses. An industry that is audience-led, with the GST finally getting implemented this April, ticket prices will go down by 15-20 per cent which in turn will increase the demand and consumption by the audience.”

“The abolishing of the Foreign Investment Promotion Board (FIPB),” he said, “will allow a smooth foreign investment in this sector. On an optimistic note, a quick action team initiated by the Finance Minister is going to help curb film piracy that plagued the industry until now. Overall, with the roll out of the GST, access to digital media and a strong action against film piracy – brings a lot of promise for the M&E Industry.”

Venture Catalysts co-founder Dr. Apoorv Ranjan Sharma asserted, “Union Budget 2017-2018 is a progressive economy budget. The government has introduced the right policies, from reducing fiscal deficit gap to cleaner GDP growth, whilst promoting digitalisation and growth of the rural sector. For the startup economy, there is a significant relief in deductions within profit available for seven years from the existing five years. Furthermore, the deduction in corporate tax is a great boost for the companies with turnover of Rs 50 crore or less. Besides, SMEs with turnover up to Rs 2 crore, will enjoy tax relaxation from eight per cent to six per cent now. The move is going to waive the financial burden, while propelling small merchants on their path to success.”

Mobclixs Technologies founder and CEO Dushyant Jani added, “Finally, the anticipation has come to an end with the unfolding of the Union Budget 2017-18 and we welcome the finance minister’s decisions on the various policies and tax saving schemes. The decision on the allocation of Rs. 10,000 crore for the Bharat Net project will provide high-speed broadband will definitely change the game for VAS businesses in the future. With increased number of people accessing the internet, the number of VAS users will also increase. Infrastructure development in terms of highways, shipping, and airways will help in public transportation.”

He added, “Further, the newly announced income tax slab of 25 per cent, for the income bracket of Rs. 50 crore for start-ups, will help entrepreneurs in the efficient allocation of funds. However, the detailed announcement on the GST bill is still on the cards, and companies now are eagerly awaiting the same. We hope that the new policy formations in the budget are put into action effectively, in the same way as their presentation.”

Tpot founder Robin Jha said, “Considering the current market scenario post-demonetisation in the last two months, it was important for government to introduce initiatives which would have a ripple effect on the overall demand in the economy. The increased spending by government on infrastructure and reduction in tax for salaried class is a step in that direction. Further the tax break for start ups and benefits for labor intensive industries would also spur the demand.”

February 4, 2017
Budget ’17 initiatives will drive overall demand, believe startups

MUMBAI: Startups are in a celebratory mode after the presentation of the Union Budget 2017 by the finance minister Arun Jaitley. He announced that small businesses with an annual turnover of Rs 50 crore will now have to pay five per cent less income tax, in order to make micro, small and medium enterprises (MSMEs) more viable.

This brings down their income tax level to 25 per cent. The profit linked deduction available to the start-ups has changed to three years out of seven years.

For the purpose of carrying forward of losses in start-ups, the condition of continuous holding of 51 per cent of voting rights has been relaxed. However, this is subject to the condition that the holding of the original promoter/promoters continues.

On the issue of removal of Minimum Alternate Tax (MAT), the FM opined that it is not practical to remove or reduce MAT at present though, he has proposed to allow carry forward of MAT up to a period of 15 years instead of 10 years at present.

The government also plans to spend Rs 2.44 lakh crore for small business loans.

Media Konnect founder and CEO Ranjit Thakur said, “After being overlooked for almost two years, the media & entertainment industry has finally come to the fore in this Union Budget. Post-demonetisation, the budget focuses on paving the way for entrants and helping in sustainability of businesses. An industry that is audience-led, with the GST finally getting implemented this April, ticket prices will go down by 15-20 per cent which in turn will increase the demand and consumption by the audience.”

“The abolishing of the Foreign Investment Promotion Board (FIPB),” he said, “will allow a smooth foreign investment in this sector. On an optimistic note, a quick action team initiated by the Finance Minister is going to help curb film piracy that plagued the industry until now. Overall, with the roll out of the GST, access to digital media and a strong action against film piracy – brings a lot of promise for the M&E Industry.”

Venture Catalysts co-founder Dr. Apoorv Ranjan Sharma asserted, “Union Budget 2017-2018 is a progressive economy budget. The government has introduced the right policies, from reducing fiscal deficit gap to cleaner GDP growth, whilst promoting digitalisation and growth of the rural sector. For the startup economy, there is a significant relief in deductions within profit available for seven years from the existing five years. Furthermore, the deduction in corporate tax is a great boost for the companies with turnover of Rs 50 crore or less. Besides, SMEs with turnover up to Rs 2 crore, will enjoy tax relaxation from eight per cent to six per cent now. The move is going to waive the financial burden, while propelling small merchants on their path to success.”

Mobclixs Technologies founder and CEO Dushyant Jani added, “Finally, the anticipation has come to an end with the unfolding of the Union Budget 2017-18 and we welcome the finance minister’s decisions on the various policies and tax saving schemes. The decision on the allocation of Rs. 10,000 crore for the Bharat Net project will provide high-speed broadband will definitely change the game for VAS businesses in the future. With increased number of people accessing the internet, the number of VAS users will also increase. Infrastructure development in terms of highways, shipping, and airways will help in public transportation.”

He added, “Further, the newly announced income tax slab of 25 per cent, for the income bracket of Rs. 50 crore for start-ups, will help entrepreneurs in the efficient allocation of funds. However, the detailed announcement on the GST bill is still on the cards, and companies now are eagerly awaiting the same. We hope that the new policy formations in the budget are put into action effectively, in the same way as their presentation.”

Tpot founder Robin Jha said, “Considering the current market scenario post-demonetisation in the last two months, it was important for government to introduce initiatives which would have a ripple effect on the overall demand in the economy. The increased spending by government on infrastructure and reduction in tax for salaried class is a step in that direction. Further the tax break for start ups and benefits for labor intensive industries would also spur the demand.”

February 4, 2017
Top M&E industry honchos see no major benefit from Budget ’17

MUMBAI: With the Union Budget’s focus on rural and infrastructure sectors, the media and entertainment (M&E) industry seems to be disappointed as the budget does not offer much. Though the sector is hoping to get some benefit through the digital push mentioned in the budget, expectations were high as the budget overlooked the sector even in the previous two budgets.

No clarity on foreign direct investment (FDI) policy, goods and services tax (GST), no further reduction in the service tax, no direct benefit for the digital ecosystem, MSOs, telecom, and many such misses has upset the M&E industry at large.

Impetus on digital payments and transactions will eventually help the OTTs/VoDs platforms subscription model. The government’s move to abolish Foreign Investment Promotion Board (FIPB) is believed to make it largely easier for foreign investors to invest in Indian companies.

Reliance Broadcast Network Limited

Reliance Broadcast Network (RBNL) CEO Tarun Katial said, “Budget 2017 is Neutral for the M&E sector although the consumption centric budget will put more money in the pocket of the common man and hence help the advertising and broadcast industries. Radio broadcast industry has requested specific policy measures like five per cent GST rate, reduction in custom duty for capex, etc and we look forward to the announcements when the GST rates are announced.”

Mukta Arts

Mukta Arts MD Rahul Puri asserted, “The Union Budget this year has focused more on uplifting some of India’s poorest sections of society. While this year again the media and entertainment sector has been overlooked, however some announcements will definitely help our industry in many ways. Setting up the cyber security teams will help fight piracy, similarly, the government’s push towards Internet penetration in rural markets will help increase content consumption and increase the audience base. Further the abolishment of FIPB will make it easier for foreign investors to invest in Indian companies.”

Worldwide Media

Worldwide Media CEO Deepak Lamba added, ‘’The Union Budget 2017 announced today, doesn’t include much on the M&E sector, however there are some points that will have a positive impact on our industry. The budget reinforced India’s huge shift towards digitization especially with the proposed deployment of high optic cables to increase internet penetration in rural India. This is a big positive for content creators like us, as it will boost the digital content consumption across online and mobile platforms. Further impetus on digital payments and transactions will eventually help the subscription model. Also, the government’s move to abolish FIPB to make the inflow of FDI smoother and to consider liberalization of the FDI policy will have a positive impact for players across sectors in the long run.”

KSS Limited (K Sera Sera)

KSS Limited group CEO and KSS Digital Cinema CEO Rahul Kanani added, “The Union Budget 2017 introduces the abolition of the Foreign Investment Promotion Board which is a positive step leading to inducing more foreign studios investment in India. More investments coupled with technological upgradation will certainly be a boon for the Indian film industry. Further, with the digital transactions getting a boost the industry especially single screen businesses which have suffered hugely because of the recent demonetization will help get a push.”

Pixel Pictures

Pixel Pictures CEO Prashanti Mallisetti said, “The budget on the onset looks quite positive and is in-line with the recent reforms. Though there are no major takeaways for any industry in particular that can affect a trajectory movement – the curb on cash transactions of 3 Lakhs is the one that is going to be a predominant factor in the demonetization short term scenario. More clarity in GST would have been great, but I guess we have to wait for that a little longer.”

Dome Entertainment

Dome Entertainment’s Mazhar Nadiadwala added, “GST would be implemented on the entertainment and events industry, and this would unify the indirect tax administration in India and help the country in two ways. Firstly, it will simplify and make it easy for the consumers to understand. Secondly, it will ease doing business in India. Also, application of GST will result into growth of the country and there will be transparency in the transactions. Under GST, service tax or state tax will be available as a credit which will reduce overall costs and eliminate dual levies of service tax and VAT on transactions. However, every coin has two sides, at one end where we have advantages of GST, on the other end certain businesses will face initial challenges, especially the ones who use traditional methods for transactions.”

ActorsApply.com

An ActorsApply.com spokesperson said, “Government’s proposed reduction in the income tax for smaller organisations will add to the agenda of Startup India thereby expanding the scope for aspiring start ups. Also, the plan to provide a seven-year tax relief will help startups to overcome the losses incurred post demonetisation. The increase in time frame from 5 to 7 years for profit linked deductions was a much needed move specially for emerging start ups. The budget also levelled India’s huge shift towards digitization supporting it with the announcement of use of optic fibre cables for high-speed broadband connectivity in rural areas. This will mean increased Internet penetration through mobile and online mediums thereby boosting the start up sector overall.”

February 3, 2017
Top M&E industry honchos see no major benefit from Budget ’17

MUMBAI: With the Union Budget’s focus on rural and infrastructure sectors, the media and entertainment (M&E) industry seems to be disappointed as the budget does not offer much. Though the sector is hoping to get some benefit through the digital push mentioned in the budget, expectations were high as the budget overlooked the sector even in the previous two budgets.

No clarity on foreign direct investment (FDI) policy, goods and services tax (GST), no further reduction in the service tax, no direct benefit for the digital ecosystem, MSOs, telecom, and many such misses has upset the M&E industry at large.

Impetus on digital payments and transactions will eventually help the OTTs/VoDs platforms subscription model. The government’s move to abolish Foreign Investment Promotion Board (FIPB) is believed to make it largely easier for foreign investors to invest in Indian companies.

Reliance Broadcast Network Limited

Reliance Broadcast Network (RBNL) CEO Tarun Katial said, “Budget 2017 is Neutral for the M&E sector although the consumption centric budget will put more money in the pocket of the common man and hence help the advertising and broadcast industries. Radio broadcast industry has requested specific policy measures like five per cent GST rate, reduction in custom duty for capex, etc and we look forward to the announcements when the GST rates are announced.”

Mukta Arts

Mukta Arts MD Rahul Puri asserted, “The Union Budget this year has focused more on uplifting some of India’s poorest sections of society. While this year again the media and entertainment sector has been overlooked, however some announcements will definitely help our industry in many ways. Setting up the cyber security teams will help fight piracy, similarly, the government’s push towards Internet penetration in rural markets will help increase content consumption and increase the audience base. Further the abolishment of FIPB will make it easier for foreign investors to invest in Indian companies.”

Worldwide Media

Worldwide Media CEO Deepak Lamba added, ‘’The Union Budget 2017 announced today, doesn’t include much on the M&E sector, however there are some points that will have a positive impact on our industry. The budget reinforced India’s huge shift towards digitization especially with the proposed deployment of high optic cables to increase internet penetration in rural India. This is a big positive for content creators like us, as it will boost the digital content consumption across online and mobile platforms. Further impetus on digital payments and transactions will eventually help the subscription model. Also, the government’s move to abolish FIPB to make the inflow of FDI smoother and to consider liberalization of the FDI policy will have a positive impact for players across sectors in the long run.”

KSS Limited (K Sera Sera)

KSS Limited group CEO and KSS Digital Cinema CEO Rahul Kanani added, “The Union Budget 2017 introduces the abolition of the Foreign Investment Promotion Board which is a positive step leading to inducing more foreign studios investment in India. More investments coupled with technological upgradation will certainly be a boon for the Indian film industry. Further, with the digital transactions getting a boost the industry especially single screen businesses which have suffered hugely because of the recent demonetization will help get a push.”

Pixel Pictures

Pixel Pictures CEO Prashanti Mallisetti said, “The budget on the onset looks quite positive and is in-line with the recent reforms. Though there are no major takeaways for any industry in particular that can affect a trajectory movement – the curb on cash transactions of 3 Lakhs is the one that is going to be a predominant factor in the demonetization short term scenario. More clarity in GST would have been great, but I guess we have to wait for that a little longer.”

Dome Entertainment

Dome Entertainment’s Mazhar Nadiadwala added, “GST would be implemented on the entertainment and events industry, and this would unify the indirect tax administration in India and help the country in two ways. Firstly, it will simplify and make it easy for the consumers to understand. Secondly, it will ease doing business in India. Also, application of GST will result into growth of the country and there will be transparency in the transactions. Under GST, service tax or state tax will be available as a credit which will reduce overall costs and eliminate dual levies of service tax and VAT on transactions. However, every coin has two sides, at one end where we have advantages of GST, on the other end certain businesses will face initial challenges, especially the ones who use traditional methods for transactions.”

ActorsApply.com

An ActorsApply.com spokesperson said, “Government’s proposed reduction in the income tax for smaller organisations will add to the agenda of Startup India thereby expanding the scope for aspiring start ups. Also, the plan to provide a seven-year tax relief will help startups to overcome the losses incurred post demonetisation. The increase in time frame from 5 to 7 years for profit linked deductions was a much needed move specially for emerging start ups. The budget also levelled India’s huge shift towards digitization supporting it with the announcement of use of optic fibre cables for high-speed broadband connectivity in rural areas. This will mean increased Internet penetration through mobile and online mediums thereby boosting the start up sector overall.”

February 3, 2017
Budget ’17: Leading digital players hail sectoral boost

MUMBAI: “Digital economy helps in cleaning up the system, has transformational impact, energises private investment through low-cost credit, and benefits the common man,” asserted finance minister Arun Jaitley while announcing the Union Budget 2017 on 1 February. The budget 2017 emphasised a lot on the promotion of digital economy and strengthening the country’s cashless economy.

Apart from launching two new schemes, Referral bonus for citizens and cashback for merchants, the government has also announced the launch of Aadhaar Pay. For the financial year 2017-18, the government targets around 2,500 crore digital transactions through UPI, USSD, Aadhaar Pay, IMPS and debit cards.
The government’s focus on growing the digital footprint in India, enhancing digital infrastructure, capping cash transactions and enabling Aadhaar Pay crucial measures were laudable. Let’s take a look at what the digital, payment solution, e-commerce platforms and payment wallets have to say about the Union Budget 2017:

Hungama.com CEO Siddhartha Roy said, “Focus on digital infrastructure in the current budget is extremely encouraging. Greater reach of broadband and data services into urban and rural India will lead to an inclusive digital economy, encouraging more people to embrace digital, driving consumption and transactions across the medium. Better quality of data is also set to give an impetus to the digital entertainment industry lead by video which is certainly poised for massive growth.”
Payment Wallets: FreeCharge & Oxigen
Oxigen Services CMD Pramod Saxena says: “The budget 2017-18 reflects the government’s continuous efforts to move towards less cash economy and bringing transparency in value chain through digital payments & GST. The budget has stressed upon the importance of strengthening India’s digital economy by bringing down cost of digital infrastructure. The acceleration of PoS infrastructure with 10 lakh PoS machines by March 2017 and another 20 lakh Aadhaar-based PoS by September 2017 is a reflection of pushing digital payments at last mile by 300 per cent from the current base of 15 lakh PoS achieved so far in last 20 years. The decision to exempt duty on various POS machines will help in reducing cost of digital infrastructure implementation and benefit companies like Oxigen.”
FreeCharge CEO Govind Rajan shared: “FreeCharge welcomes the policy measures aimed at accelerating the adoption of a digital economy in India. The incentives for adoption of fintech equipment, expansion of digital infrastructure in under-served areas, Aadhar Pay for wider adoption by merchants and capping cash transactions at Rs 3 lakh, all together have kept the spotlight on building a less-cash India. In doing so, we will all help build a transparent and efficient future for our country”
Payment Solution Platforms: AGS & Telr

AGS Transact Technology group chief marketing officer Pratik Seal added, “The Union Budget 2017 has seen a host of incentives to boost India’s digital economy. However, the budget has not been a very populous one with incentives for the startup fraternity per se. Reduction of income tax for companies with a turnover of Rs. 50 crore to 25 per cent is a welcome move, and will aid many emerging companies. The three-year tax holiday in the first seven years (extended from five years) since inception of startups is a measure which will provide some relief to them.

Furthermore, he added, the surcharge of 10 per cent levied on individuals earning between Rs 50 lakh to Rs 1 crore may impact startups in the process of scaling-up, to attract senior talent on their usual cash and ESOP/stocks packages, as the taxation gap over and under the Rs. 1 crore mark is now practically non-existent. The instant gratification “of being in the Rs 1-cr plus CTC and still be in the sub Rs-1 crore tax bracket” part is effectively eliminated. One would rather demand a fatter, all-cash pay-cheque now. Unfortunately, no policies have been announced providing relief for the aspiring Indians in the Rs 10-30 lakh bracket while heavier taxation for Rs 50-100 lakh is also a serious “aspiration dampener!”

Telr founder and CEO Sirish Kumar said, “The budget looks well-rounded and in favour of digital economy, something we had anticipated following the demonetisation drive. There are policies to take internet to rural masses, including Bharat Net and ensure security of same via BHIM app and setting up CERT. Furthermore, limiting cash transactions to three lakh is going to work in favour of payment solution-providers, having the provision to handle payments of bigger ticket sizes. The increased emphasis on AadhaarPay, tax exemptions on Iris scanners, MicroATMs and POS machines, in addition to iris scanners, is further going to democratise digital economy in India. Taxes have been lowered for more than 67 per cent of MSME. This will make these businesses more viable.”

E-commerce Platforms: Craftsvilla & Snapdeal

Craftsvilla co-founder Manoj Gupta added, “There is nothing big bang in this Union Budget. There is very little for startups and ecommerce. Abolition of FIPB would hopefully make FDI easier. I was looking forward for the Government to take more proactive actions on areas like handloom and tourism that has huge potential for India. I would have also loved it if they announced developing handloom parks or heritage parks across the country with better facilities.”
Snapdeal Kunal Bahl co-founder & CEO Kunal Bahl said, “We commend the focus on growing the digital footprint in the country — enhancing digital infrastructure, capping cash transactions, reducing cash donations, using Adhaar Pay to enable more digital payments are significant measures. Initiatives make an impact when there is continued attention and the new announcements build on the demonetisation efforts. We also welcome the emphasis on skill development and technical education – this will enable India to successfully harness the demographic dividend. The attention to affordable housing, greater employment in rural areas are the right interventions to build a more equitable society.”

February 2, 2017
Budget ’17: Leading digital players hail sectoral boost

MUMBAI: “Digital economy helps in cleaning up the system, has transformational impact, energises private investment through low-cost credit, and benefits the common man,” asserted finance minister Arun Jaitley while announcing the Union Budget 2017 on 1 February. The budget 2017 emphasised a lot on the promotion of digital economy and strengthening the country’s cashless economy.

Apart from launching two new schemes, Referral bonus for citizens and cashback for merchants, the government has also announced the launch of Aadhaar Pay. For the financial year 2017-18, the government targets around 2,500 crore digital transactions through UPI, USSD, Aadhaar Pay, IMPS and debit cards.
The government’s focus on growing the digital footprint in India, enhancing digital infrastructure, capping cash transactions and enabling Aadhaar Pay crucial measures were laudable. Let’s take a look at what the digital, payment solution, e-commerce platforms and payment wallets have to say about the Union Budget 2017:

Hungama.com CEO Siddhartha Roy said, “Focus on digital infrastructure in the current budget is extremely encouraging. Greater reach of broadband and data services into urban and rural India will lead to an inclusive digital economy, encouraging more people to embrace digital, driving consumption and transactions across the medium. Better quality of data is also set to give an impetus to the digital entertainment industry lead by video which is certainly poised for massive growth.”
Payment Wallets: FreeCharge & Oxigen
Oxigen Services CMD Pramod Saxena says: “The budget 2017-18 reflects the government’s continuous efforts to move towards less cash economy and bringing transparency in value chain through digital payments & GST. The budget has stressed upon the importance of strengthening India’s digital economy by bringing down cost of digital infrastructure. The acceleration of PoS infrastructure with 10 lakh PoS machines by March 2017 and another 20 lakh Aadhaar-based PoS by September 2017 is a reflection of pushing digital payments at last mile by 300 per cent from the current base of 15 lakh PoS achieved so far in last 20 years. The decision to exempt duty on various POS machines will help in reducing cost of digital infrastructure implementation and benefit companies like Oxigen.”
FreeCharge CEO Govind Rajan shared: “FreeCharge welcomes the policy measures aimed at accelerating the adoption of a digital economy in India. The incentives for adoption of fintech equipment, expansion of digital infrastructure in under-served areas, Aadhar Pay for wider adoption by merchants and capping cash transactions at Rs 3 lakh, all together have kept the spotlight on building a less-cash India. In doing so, we will all help build a transparent and efficient future for our country”
Payment Solution Platforms: AGS & Telr

AGS Transact Technology group chief marketing officer Pratik Seal added, “The Union Budget 2017 has seen a host of incentives to boost India’s digital economy. However, the budget has not been a very populous one with incentives for the startup fraternity per se. Reduction of income tax for companies with a turnover of Rs. 50 crore to 25 per cent is a welcome move, and will aid many emerging companies. The three-year tax holiday in the first seven years (extended from five years) since inception of startups is a measure which will provide some relief to them.

Furthermore, he added, the surcharge of 10 per cent levied on individuals earning between Rs 50 lakh to Rs 1 crore may impact startups in the process of scaling-up, to attract senior talent on their usual cash and ESOP/stocks packages, as the taxation gap over and under the Rs. 1 crore mark is now practically non-existent. The instant gratification “of being in the Rs 1-cr plus CTC and still be in the sub Rs-1 crore tax bracket” part is effectively eliminated. One would rather demand a fatter, all-cash pay-cheque now. Unfortunately, no policies have been announced providing relief for the aspiring Indians in the Rs 10-30 lakh bracket while heavier taxation for Rs 50-100 lakh is also a serious “aspiration dampener!”

Telr founder and CEO Sirish Kumar said, “The budget looks well-rounded and in favour of digital economy, something we had anticipated following the demonetisation drive. There are policies to take internet to rural masses, including Bharat Net and ensure security of same via BHIM app and setting up CERT. Furthermore, limiting cash transactions to three lakh is going to work in favour of payment solution-providers, having the provision to handle payments of bigger ticket sizes. The increased emphasis on AadhaarPay, tax exemptions on Iris scanners, MicroATMs and POS machines, in addition to iris scanners, is further going to democratise digital economy in India. Taxes have been lowered for more than 67 per cent of MSME. This will make these businesses more viable.”

E-commerce Platforms: Craftsvilla & Snapdeal

Craftsvilla co-founder Manoj Gupta added, “There is nothing big bang in this Union Budget. There is very little for startups and ecommerce. Abolition of FIPB would hopefully make FDI easier. I was looking forward for the Government to take more proactive actions on areas like handloom and tourism that has huge potential for India. I would have also loved it if they announced developing handloom parks or heritage parks across the country with better facilities.”
Snapdeal Kunal Bahl co-founder & CEO Kunal Bahl said, “We commend the focus on growing the digital footprint in the country — enhancing digital infrastructure, capping cash transactions, reducing cash donations, using Adhaar Pay to enable more digital payments are significant measures. Initiatives make an impact when there is continued attention and the new announcements build on the demonetisation efforts. We also welcome the emphasis on skill development and technical education – this will enable India to successfully harness the demographic dividend. The attention to affordable housing, greater employment in rural areas are the right interventions to build a more equitable society.”

February 2, 2017
Budget ’17: Prasar Bharati grant-in-aid down, film sector’s aid up

NEW DELHI: The grant-in-aid for Prasar Bharati has come down marginally from the revised estimates from Rs 4500 million in 2016-17 to Rs 4300 million for 2017-18.

This includes a grants-in-aid to the pubcaster of Rs 3500 million and a separate grant-in-aid to it for the Kisan Channel of Rs 800 million which is higher than last year’s Rs 600 million.

In addition, there is support of Rs 29,967 million for 2017-18 against Rs 27,168.6 million in 2016-17 in the allocation of support to autonomous bodies. But, there is no investment in the head of public sector undertakings in Prasar Bharati, unlike last year.

An explanatory note says the grants-in-aid is being provided to cover the gap in resources of Prasar Bharati in meeting its revenue expenditure.

(Expenditure on salaries of Prasar Bharati has fallen on the shoulders of the government since all Prasar Bharati employees who were in employment as on 5 October 2007 have been given deemed deputation status.)

The total budget of the information and broadcasting ministry has been raised to Rs 44,090 million against Rs 40836.3 million.

There is a separate allocation of Rs 230 million for strengthening broadcasting activities which covers community radio (Rs 40 million), Electronic Media Centre (Rs 120 million), Mission Digitisation (Rs 50 million) and automation of broadcasting wing (Rs 20 million).

This is less than last year’s allocation in this head of Rs 308.3 million.

The allocation for the film sector has been raised to Rs 2070 million, and covers the National Museum of Cinema, Development communication and Dissemination of filmic content, Infrastructure Development Programme relating to the film sector, and Mission/Special projects which gets a massive increase to Rs 1100.1 million as compared to Rs 170.1 million last year. This allocation is for the Umbrella Programme Missions / Special Project includes the following Schemes:

National Film Heritage Mission (Main Secretariat), Anti-Piracy Initiatives and Setting up a National Centre of Excellence for Animation, Gaming and Special Effects (coming up in Mumbai).

There is an allocation of Rs 180 million for mass communication which includes upgradation of the Indian Institute of Mass Communication to international standards and opening regional centres of IIMC.

The allocation under ‘Secretariat – Social services’ has been raised Rs 795.2 million as compared to Rs 703.2 million, and art and culture to Rs 102.3 million. information and publicity gets Rs 4059.9 million for various programmes which include Directorate of Advertising and Visual Publicity; Press Information Bureau, Field Publicity, Song and Drama Division, Publications Division, Photo Division, Registrar of Newspapers in India and other media units.

After seven years in a row, the government has announced investment in the National Film Development Corporation to the tune of Rs 125.4 million.

There is a marginal increase in the lump sum provision for projects/schemes for development of North-eastern areas including Sikkim to Rs 842 million against Rs 800 million last year.

There is an allocation of Rs 30,732.6 million as support to autonomous bodies which apart from Prasar Bharati, also has allocations for the Film and Television Institute of India, Satyajit Ray FTII, Press Council of India, IIMC, and Children’s Film Society, India.

February 2, 2017