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Union Budget 2017- Impact on the startups and their reactions!

The Budget 2017 gave a good boost to boost the digital economy of the country along with a lot of concessions to the startups. The initial reactions from various stakeholders in the entrepreneurship landscape share a positive outlook. Let’s have a look at what the Indian startup CEO’s and entrepreneurs feel about Budget 2017-18:

Vidushi Daga, Founder and Director, Clone Futura Education says, “Although the focus on skill development and implementation of quality education parameters by introducing the practice of measuring annual learning outcome in schools is a very good move by the government, but the main concern is that the entire focus was only on higher education. The base of having a systematic and future oriented education system can only be implemented by building a better platform for teachers to learn. Next is if the primary education system is not molded, then eventually it is going to affect the higher education sector as well. There should have been focus on how digital education can be provided to the primary school students and teachers by providing some special counselling/awareness about cyber safety, latest trends in technology and education modules, etc.” Ms. Daga, “All in all the budget does look promising when it comes to rural development, higher education and tax benefits but there could have been a better focus on the overall education sector.”

Hamid Farooqui, CEO, SoGoSurvey says, “Incentives for Startups and allocation of Bharat Net project should help. The Budget presented by FM is quite in line with the policy of the government of India has been following with reference to startups and technology. FM’s latest announcement providing incentives to startups and relaxation on taxes for 7 years would surely add Phillip to a large number of startups in the country; however, the FM should have announced more incentives for seeding and providing a backup for startups to take off, which is left desired.” Mr. Farooqui adds, “One major announcement which FM has made is the allocation of Rs.10 crore, For Bharat Net Project aimed at providing suitable connectivity rate for rural areas. This step is in the right direction and likely to facilitate digitisation at grass root level provided with the supplement in a robust telecom industry.”

Shivani Jain, Founder, Once Upon a Trunk says, “Good incentives give a start up a great start. Deduction on taxes puts the pocket little heavier this time, I hope this time union budget helps to keep the good deeds always.”

Tarun Gulati, Co-Founder, DJUBO says, “Although demonetization & preventing tax evasion remained the dominant theme in this year's budget, quite a few of the budget announcements are likely to have a positive impact on the tourism sector. Key among them being the initiative to develop 5 tourism zones and launch of the second take on the extremely well-received Incredible India campaign. While there is little relief in taxes levied on the hospitality sector, something which the hospitality sector was expecting with this budget, the reduction in corporate taxes aimed at SMEs, will benefit the independent hoteliers and hospitality service providers. The listing of IRCTC on the stock market should allow it to make even greater contribution to the Indian tourism scene. Mr. Gulati adds, “While not a direct benefit, this year's budget pushed one of the largest infrastructural spend, with a major chunk going to road and rail connectivity, should be able to sufficiently assist tourism development. So, while the Budget 2017 did not introduce any paradigm shifts for the hospitality industry, it should surely keep pushing the demand in a positive direction and the key to capitalize on it for hoteliers is going to be leveraging the right technologies, like DJUBO.”

Falguni Nayar, CEO and Founder, Nykaa.com says, “Budget 2017 has been a balanced one with many revolutionary announcements. It is for sure a good day for Indian start up sector. The announcement of 5% tax exemption for companies having turnover below Rs. 50 crores will help around 96 percent of MSME’s and start ups of our country which is a big relief. This move will not just support the already running small businesses, but will also boost entrepreneurship in our country. Also the announcement by Finance Minister on tax reduction for income holders below Rs 5 Lakhs and radical announcements on agriculture will facilitate in acceleration of GDP. â€‹The restrictions for cash payments above 3 lacs will help us move from a cash driven to a digital economy which is good for e-commerce.​ Above all it’s a tax holiday for startups now for not just 3 years but 7 years.”

Vishwas Shringi, Co-Founder and CEO, Voylla Fashions says, “The budget is progressive and in favour of the multiple startups which the country supports. The 5% tax exemption to companies having turnover below Rs. 50 crores will help around 95 percent of MSME’s and start ups of our country which is a big relief. Due to this announcement, we can now allocate these funds which we would have paid in tax in adopting new technology, hiring skilled resources, etc. We just hope that the same is implemented soon so that India progresses towards a nation which has more job opportunities. The budget altogether is reform oriented progressive budget with concessions to middle class & SMEs while maintaining taxes through compliance. Liberalisation in the FDI policy is a welcome move.”

Harshil Gala, Director, eSense Learning says, “Digital learning and education gets a boost in the budget. It’s possibly for the 1st time in many years that a clear-cut road map for digital learning, online education, and technology advancement has been laid out in the budget. Hence, the full credit goes to the FM. One of the biggest announcements, which is likely to have an impact on youth and education would be ‘National testing agency' for the entrance exam. It would not only boost greater participation from all strata, but would simplify the process and make it more transparent. Enhancement of skill India mission, establishment of 100 international skill centers, creation of 5 thousand PG seats per year, courses in foreign languages and upliftment of around 3 thousand 500 educationally backward blocks in the country are the highlights of this year budget and if implemented with due sincerity, I hope this steps would go long way in bringing about the change in the world of digital and online learning.” Mr. Gala adds, “The announcement of ‘Bharat net project’ which would take connectively to deeper area should help in promoting e-learning and we should get ready for that. This budget has given more importance to make ‘Tech India’ and this announcement would push an economy towards digitization, I welcome FM’s step to emphasize on science and technology and availability of 100 skill centers across India."

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