Finance Minister, Arun Jaitley has actually opened his ‘Goodie Bag’in budget 2016 and centered around inclusive growth along with focus on rural India, agriculture, health and education.
Below are first reactions to the Budget presented on 29th February 2016:
Mr. Pushpinder Singh, CEO & Co-founder, Travelkhana
“1. Wait and Watch: The budget has actually been pretty on certain aspects even though some future actions have actually been promised. We would certainly have actually to wait and watch out for those initiatives. This is mainly the following:
a)Constitutional amendment to the Goods and Service Tax. This will certainly be beneficial as a whole to the entire industry.
b) Amendments to the Company Law to make points much easier for startups
c) Amendments to the bankruptcy laws to promote the ecosystem for startups
2. We welcome the steps taken for promoting Agriculture and meals processing. The initiatives and tax benefits announced for promoting this sector will certainly advice in lowering the cost of meals and dealing along with meals inflation as a whole. even though we would certainly have actually loved to see lowering of service tax on services from dining establishments as it would certainly indirectly advice the meals sector. That has actually unfortunately not happened.
3. We welcome the initiatives announced for boosting the transport sector. Entrepreneurs having a free policy to start inter state buses will certainly really benefit the sector and the travelers as a whole.”
Pawan Gupta, Co-founder, Curofy
“The budget was quite welcome for the startup ecosystem in India. From registering startup along with in a day to reducing corporate tax for companies along with revenue much less compared to 5 crore, the budget spoke of achhe din for startups in India. The ecosystem called for a sentiment push and I believe it got it.
I personally like the provisions of capital gains not to be taxed on investments by fund of funds for startups and lowering the long term capital gains duration from three years to two years. These measures need to improves the assurance of investors. Combined along with Bankruptcy laws they need to job wonders for the ecosystem.
In healthcare, the government has actually expanded health cover by Rs. 30,000 for senior citizens and provided Rs. 1,00,000 cover to every family in the country. In a country where so several people go free of proper treatment because of lack of funds, the healthcare cover extension need to improve healthcare spending. There is obviously a big opportunity for startups and companies in insurance sector. Further emphasis on generic drugs through PM Jan Aushadi Yojana gives further boost to homegrown generic pharmaceuticals.
But at the same time the budget was reasonable on how healthcare infrastructure will certainly be made and how the Doctor-Patient ratio will certainly be improved. These are the biggest troubles plaguing the industry”.
Saurabh Arora, Founder & CEO, Lybrate
“The government has actually validated its intent through Budget to promote startup mindset in the country. Proposals like 100% deduction of profits for 3 from 5 years for startups established throughout April, 2016 to March, 2019; lowering to two years the period for getting benefit of long-term capital gain regime in case of unlisted companies from the current three years; and making every bank branch to facilitate at least two projects under ‘Stand Up India Scheme’ are aimed at encouraging a lot more entrepreneurial ventures in the country. One announcement that will certainly advice all startups across board is the Digital Literacy Mission Scheme for rural India under which the government looks to cover around 6 crore additional household within the next 3 years. This is a fantastic step towards digitizing rural sections of the country and as soon as that will certainly happen, it will certainly give the population residing there along with the opportunity to benefit from online platforms like ours that enables communication between users and doctors from anywhere, anytime. Also, the ‘National Dialysis Services Programme’ under National Health Mission is Likewise a remarkable measure to fix the issue of non-availability of renal dialysis centres in the country. The government’s effort to introduce facilities of renal dialysis in every district hospital will certainly save the hassles of several that have actually to travel to metro cities for getting the procedure done again and again.”
Bengt Rittri, Founder and CEO of Blueair
“We welcome the initiatives taken by The Finance Minister Mr. Arun Jaitley in this budget to control the air pollution levels in the country. However, estate and business owners as well as the air purifier industry should be incentivised to grab air pollution protection devices such as air purifiers in every Indian homes. To start with, reducing import duties on air purifiers can easily be a step that can easily be taken by the government.”
Background on the actions taken this Budget on air pollution –
1. Air pollution in rural- The Finance Minister announced that the government will certainly give LPG connection in the name of women in rural households and Rs. 2,000 crore will certainly be allotted for this. This will certainly bring down indoor air pollution caused by the ‘chulhas’ (stoves)— burning wood, coal and animal dung as fuel — which is major factor behind the occurrence of a slew of diseases, including respiratory diseases among women.
2. Vehicles to cost a lot more – In a move aimed at checking the rising air pollution levels in the country, Mr. Arun Jaitley has actually levied additional taxes on Diesel and SUVs to pull down the demand. He announces 1% Clean Energy Cess on LPG cars, 2.5% on diesel, 5% on SUVs as portion of green measures and to encourage use of Hybrid cars.
3. Clean energy cess – There is an announcement of clean energy cess in this budget to reduce the negative environmental consequences and increased pollution levels associated along with industrialization and urbanization. It increased from Rs 200/ton to 400/ton on coal, lignite and peat.
Mr. Varun Khitan, Co Founder UrbanClap
“a lot more compared to being a pro-startup Budget as was expected, the financial layout for FY 2016-17 has actually taken in to account the should develop entrepreneurs across the digital divide. On the one hand there is focused support to women, on the other, there is Likewise a provision to impart entrepreneurial skills to the youth under the Pradhan Mantri Kaushalya Yojana. The proposal to open up 1500 multi-ability institutions along with adequate allocation will certainly be a value add.
For emerging businesses there’s a slew of incentives to encourage angel investment and startup activity, in the process, develop additional jobs. Steps in this regard are tax exemption for three years from the initial 5 years of startups’ existence; no capital gains tax proceeds are invested in government-approved fund-of-funds or if an investor is a majority shareholder are.
Startups look to gain from the government focus on employment and employability. Modification in the definition of SME, focused intent on the GST bill and added infrastructure spending are all boosters for the economic environment and startups stand to gain from them.
We look forward to speedy implementation of these proposals.”
Mr. Siddhartha Roy, CEO of Hungama.com
“The Union Budget 2016 has actually stepped in the direction to pave the method for rural digitization along with a focus on digital literacy. The aim to connect 6 crore households will certainly give a stronger reach and deeper penetration for digital and technology driven services in rural India thus allowing residents a plethora of services. The digital literacy scheme announced by Mr. Arun Jaitley in rural India will certainly not only provide rise to increased manpower Yet Likewise boost employment generation. The budget is an indication of the government’s resolve towards the Digital India scheme. We at Hungama our committed to building a connected and digital India.”
Mr. Bharat Bhardwaj, Founder & Chairman of TopDoctorsOnline.com (TDO)
“even though the Union Budget 2016 has actually given a lot more impetus to agriculture and rural development, allocations for startups have actually Likewise been made for tax deductions and registration process simplification. The brand-new allocations are a welcome Modification as they permit flexibility and ease in governmenrt registration for startups as per the Company Act. The rural digitization scheme will certainly add over 6 crore households which will certainly be connected digitally while Likewise educating households regarding digitization, this will certainly aid technology startups widen their reach in the nation, which in turn will certainly add to growth. The Union Budget 2016 has actually Likewise announced tax allocations for startups, allowing some deductions, this will certainly advice founders as the first 5 years of a startup are the most most important along with regards to finances. The budget truly stands up to the Stand Up India scheme announced by the Prime Minister.”
Mr. Punit Desai, Co-founder & CEO, WelcomeCure
“along with a stronger importance to agriculture and rural development the Union Budget 2016 has actually Likewise reserved allocations for startups, along with regards to tax deductions and simplification of government business registration processes. The announcement of the rural digitization scheme will certainly add over 6 crore households which will certainly aid to a connect India, while Likewise educating households regarding digitization, this will certainly advice technology startups widen their reach in the nation adding to their growth. The Modification is welcomed as it will certainly grant flexibility and ease in government registration for startups as per the Companies Act. The Union Budget 2016 has actually Likewise announced tax allocations for startups, allowing some deductions, this will certainly advice entrepreneurs as the first 5 years of a startup are the most most important along with regards to finances. The budget truly stood by the Stand Up India scheme announced by the Prime Minister.”
Jason Kothari, CEO, Housing.com
“Considering the liquidity complications and the subdued demand in the real estate sector over the last couple of years, we hoped for a lot more from the union budget this year. We do welcome the government’s acknowledgement of the role start-ups play in job creation, and the tax holiday for the initial 3 years of starting a company. We expect the real estate sector to benefit from the government’s focus on the infrastructure sector, notably roads and highways, and its promise of a brand-new a lot more effective credit rating system of infra projects that will certainly permit higher quality projects to attract a lot more funding. The digitisation of land records under the integrated land management system will certainly go a long method in simplifying land acquisition for projects. The government’s service tax exemption on houses much less compared to 60 sq m, and the additional exemption of Rs 50,000 for housing loans up to Rs 35 lakhs for homes not above Rs 50 lakhs will certainly both most likely improve estate buyers’ sentiment.”
Aloke Bajpai, CEO & Co-Founder, ixigo
“The Union Budget 2016 has actually laid out big investments for the infrastructure sector which include allotment of funds for the development of roads and highways and an action strategy to revive 160 non-functional airports. These steps come as a welcome move for the travel and tourism sector.
The focus on travel and tourism is further reaffirmed along with the Finance Minister announcing the annual programme “Ek Bharat – Shreshtha Bharat” which will certainly aim at linking states and districts through exchanges in areas of language, trade, culture, travel and tourism.
Further, we Likewise welcome the Government’s initiative to increase baggage allowance for global passengers and exempt passengers flying in to India from filing the baggage declaration form if they are not carrying dutiable or prohibited goods. This will certainly certainly ease inbound tourism.
The current government’s focus on the Indian startup ecosystem is quite positive and the union budget 2016 has actually reinforced support for entrepreneurship and start-up businesses in India.”
Also Read-
Budget 2016: Women Entrepreneur And SC/ST will certainly grab Rs 500 Cr Backing From The Government
FM Unwraps Budget 2016; Startup Industry Recieves A Gift of 100% Tax Deduction For 3 Years
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