18 December 2017

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Post Budget Reactions 2017

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The Union Budget presented by Finance Minister Arun Jaitley, on February 1, 2017 has received mixed responses. Here are some reactions from the Small Business community.

 

 

 

 

 

 

K. Satyanarayana, Co-founder and Director, Ecom Express Private Limited

The union budget is a growth oriented budget as it has been announced with a number of financial provisions in public interest. The impetus towards investment in infrastructure is good for the economy.  Increased budget allocation for national highways is a big boost.  However, toll administration requires streamlining to reap the benefits. The push on rural economy in building infrastructure and farm credit support for inclusive growth will spurt rural consumption in a big way.

Small businesses having turnover less than 50 crores would get a positive boost from the move of reduction of corporate tax. While tax benefits pertaining to incentives to use digital payments will create an uplift for digital economy, incentives given to small tax payers will encourage more tax payers in the net while supporting savings and consumption.

GST will resolve the tax complexity with a single unified tax improving the ease of doing business in India and help drive growth. A unified tax regime will enable logistics players to deliver goods more efficiently and will drastically cut down the delivery times.

Chirag Haria, CEO, Aarogyam Energy Jewellery
“The overall Union budget 2016-2017 is an optimistic step by the government for entire e-commerce and start-ups industry. We welcome the recent developments and applaud the government's decision to support start-ups by increasing limit for 44AD from 1 crore to 2 crore, this will help start-ups to efficiently focus on work rather taxations."

 

 

 

 

Rajeev Vyas, Director, Steel Users Federation of India (SUFI)
“It's a positive budget as neither import duties nor vat has been tweaked. Increase rural spending and exemption on house rent will improve housing sector and thereby giving a boost to steel consumption. As steel users apex body SUFI would have liked if issues pertaining to MIP, Safeguard duties and BIS were addressed in this budget and some relief was given to users of steel as the protection for Steel Plants has been given which was also necessary. The Govt. has to strike a fair balance between the legitimate needs of steel user industry as well as steel producers.”

 

 

Adarsh Chilukuri, CEO, Bulkhouse Trading India Pvt. Ltd
“Modi's new Start-ups India is an excellent and an encouraging move to enable the entrepreneur’s to stand up for themselves and to change traditional Indian trade to a modern e-commerce country. It’s also quite interesting to see how the agricultural sector, which contributes a major part in the Indian GDP, has been emphasized in the current budget. With increased support through more funding sources, insurance and infrastructure, the Indian Agricultural business is set to boom. The e-commerce schemes announced in these lines is the most desirable way of on enabling the farmers to sell their produce at a fair price and even the end customers will get to purchase it at a relatively lesser price.

Knowing that the logistics industry has not received the desired attention or recognition in India, it’s good to see how the Infrastructure is set to build up rapidly especially with more road networks which will enable timely movement of goods. Overall the Modi government has set an extremely encouraging budget for Indian market to keep the engines running even faster when the global markets are melting down. India could take a major advantage of the current International economic situations and emerge as a new leader in the global market.”

Brijesh Lohia, Managing Director, Global Ocean Group
Just the fact that the Honorable Finance Minister used the word ‘’warehouse’’ more than 10 times indicates the Union Government Focus on warehousing and logistics. The move to set up logistics support to E-Commerce players by providing designated pick-up centres at identified stations. It would offer supply chain and E-Commerce industries and alternative to the expensive air cargo that they now rely on for delivery.  Rail cargo will be very much cheaper than the existing rates. Increasing 24x7 customs clearance at ports and airports with a solid intent to implement goods and Service Tax (GST) in the coming year. Introduction of GST has been given a thrust.

This Budget promises to address several issues faced by the roads, power, ports and airport sector. The proposed huge financial investment into NHAI and State Roads and a specific focus on development of select expressways in parallel to the development of industrial corridor will improve overall infrastructure, connectivity and lend efficiencies to supply chain.

To develop inland navigation in certain areas will showcase newer opportunities and cost advantages to the industry.   There is a decision to increase public investment in infrastructure development including National Highways. Better service connectivity will provide better speed and cost effectiveness for the logistics service provider and consumer alike. The logistics sector gets a boost with railway budget emphasizing on augmenting freight handling capacity through a slew of measures increasing the speed of trains, transport development and multi-modal depots is bound to improve connectivity and efficiency with airports and railways.

Ssumit Berry, Managing Director, BDI Group

“This announcement is a landmark for the real estate sector which will open new avenues for the affordable housing segment. We welcome and appreciate this decision of the government, it will help the sector get various benefits of infrastructure sector which was a long time demand of the realty industry. The new measure will reduce costs for developers and attract more investors. It is great push for the housing for all vision and will also benefit the first time buyers”

Rahul Singla, Director, MAPSKO Group

Lowering capital gain tax on land deals shall ring good news to developers. Reduction of capital gain tenure from 3 years to 2 years would boost the morale of investors who were shying away from realty sector.5% reduction in direct taxes would make more cash availability with perspective buyers.

RERA making real Estate an industrial norm would help developers get easy loans from banks and hence more transparency and easy operations for developers. Coupled with lower interest rates, it speaks well for real estate sector in times to come.

 
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