Yesterday we had reported about the expectations of the tech industry from our Finance Minister, Mr. Arun Jaitley regarding the Union Budget 2015. After the budget was proposed in the Parliament today, we have reactions from some stalwarts of the tech community.
Lets have a look at some of the reactions coming in from the tech community after the Union Budget 2015 was tabled by Mr. Arun Jaitley, Finance Minister of India.
Post Union Budget 2015, Mr. Sitakanta Ray, Co-Founder of MySmartPrice.com said,
“Budget 2015 has been a comprehensive one across spectrum covering not just welfare of the poor, the differently abled, the senior citizens but also the corporate sector especially the emerging sectors such as IT. For ecommerce in particular, while the dream of a tax holiday or FDI hasn’t come true, the introduction of GST in 2015-16 will greatly help the e-retailers who have been struggling with the differentiated tax laws.
The Marquee of this budget has been the added benefits for entrepreneurs. The government allocation of Rs 1000 crores to create a SETU (self employment and talent utilization) scheme should greatly motivate young entrepreneurs. In addition to this, the reduction of Corporate Tax from 30% to 25% essentially increases the advantages of starting up verses working for a salaried job. Consolidating startup approvals through ebiz portal by including state approvals would certainly bring down the complexities in setting up business. Overall the budget has focussed on pushing the Make in India strategy by encouraging domestic industries and entrepreneurship and rewarding the Indian industries.”
On this occasion, Mr. Ambarish Gupta, CEO and Founder, Knowlarity Communications said,
“With the latest budget release by Arun Jaitley, it was expected that many open-ended loops will be closed for tech startups like tax relaxation, more youth programs for budding entrepreneurs, relaxation for angel investors etc. Even though a promising budget is released from a startup perspective and rate of Income-tax on royalty and fees for technical services reduced from 25% to 10% to facilitate technology inflow, few of the expected changes have been postponed for next year such as service tax relaxation on products and the simplifying the complex Company Act 2013.
Currently initial sum of Rs 150 crore is promised to create world-class IT hub to take advantage of our competitiveness. Other concerns of IT industries for a more liberal system of raising global capital, incubation facilities in our Centres of Excellence, funding for seed capital and growth, and ease of doing business etc. would be addressed for creating hundreds of billion dollars in value. We are expecting these programs will add-on to our advantage with other initiatives like ‘Make in India’ and ‘Digital India’. Government is also establishing the mechanism ‘self employment’ to support all aspects of a startup business. This would be beneficial to build a new or existing startups from the scratch. The budget also included hopes to improve ease of doing business in India with minimum government and maximum governance.
One of the most promising aspect was about reducing the corporate tax from 30% to 25%, but it is again a plan which will be executed in the next 4 years. Government is also establishing the mechanism ‘self employment’ to support all aspects of a startup business. SETU (Self-Employment and Talent Utilization) will be set up as techno-financial, incubation and facilitation programme to support growing startups. 1000 crore is promised to be set aside as initial amount in NITI. These initiatives will definitely encourage and grow the spirit of entrepreneurship – to turn youth into job creators.
Though there is nothing much in the bucket for the angel investors who are the main source for any startup growth, we hope that the promised programs will be executed effectively & results would be seen unlike last year.”
Post Budget 2015, Mr. Nigel Eastwood, CEO of New Call Telecom, said
“The Government delivers on its promise of strengthening the infrastructure sector. We, at New Call Telecom, strongly believe that small and medium sized companies hold the key to growth and by giving start-ups a boost will only expedite their growth story. The reduction in corporate tax from 30% to 25% over next 4 years is a welcome one. The reduction on taxes on technical services from 25% to 10% will also cut down costs for service providers like us who have focused plans for realizing the Digital India dream. Overall the budget looks realistic and a stepping stone to India’s growth story. I second the Finance Minister – India is about to take off.”
“In my view, the budget reflects a lot of confidence that the new Government has shown since the time it took charge of the office. It also projects a highly positive and optimistic roadmap for companies and investors looking to do business in India, thereby giving a boost of confidence to FDI in India and clearly sending out a signal that its simpler and lucrative to do business in India. It’s a budget for the working class and professionals. It gives a big boost to the farming and manufacturing sector and also encourages employment opportunities by giving preference and building a strong foundation to domestic manufacturing in India. A very encouraging step forward is the decision to induce investment by 70,000 crore in the infrastructure sector for FY 15-16. Health & Education has been a strong focus in the budget and the Government should be lauded for its decision to provide concession to senior citizen on medical expenses.”