Union Budget 2021: Which opportunities will it bring?

Quotes from multiple industries, IT, Startup, Education, EV & Fintech, Logistics.

Jan 22, 2021 09:01 IST India Infoline News Service



1. Datacultr, a one-of-its-kind platform that allows consumer lending companies to significantly reduce their risk on 'New to Credit' customers

"The pandemic has brought to fore an opportunity for immense innovation by startups and new-age technology companies and it is quite evident that the trend will only pick up in the year 2021. In the spirit of entrepreneurship, we hope, through this union budget, the government brings game-changing reforms, new policies, and regulations that will offer relief and tax sops to MSMEs and the startup ecosystem.

To talk about the Fintech industry particularly, the market has been largely expanding with new-age businesses emerging in the market opening up broader avenues to lending to high-risk and new-to-credit borrowers. The sector is on the cusp of a technological revolution; with the pandemic only accelerating the pace of tech adoption. The government must back this growth with favorable policies and encourage digitalisation to provide a further boost and expand financial inclusion across nooks and corners of the country".


2. Appinventiv, a leading global end-to-end digital transformation service provider

"While eagerly waiting on the insights of this year’s budget, We hope that the finance minister and the government of India takes steps to position India as the IT epicentre of the world by creating advanced policies in favour of the Technology Industry. At the same time, the government must also create favourable tax policies for 100% owned & incorporated companies in India, which are playing a major role in giving employment and bringing foreign funds, and helping the economy. With that in mind, we urge that the government considers providing incentive in income tax for the companies which have been generating good employment with consistency.

Being one of the leading digital transformation companies, we believe that our compliance system should be favourable enough to encourage the organizations to keep their Head Offices in India instead of abroad. Even during the testing times, India's IT Industry and the startup ecosystem have shown utmost resilience; adapting to the new normal deftly. The industry has been playing a significant role in transforming India's image in providing world-class technology and business services. So, the expectations from this year's budget are somewhat high".


3. TO THE NEW, a leading digital technology company backed by 1,400+ people globally. The company is one of the few Global AWS Premier Consulting Partners. TO THE NEW's Cloud Transformation practice consists of Cloud Consulting and Strategy, Migration, DevOps, 24x7 Incident Management, and Cloud Financial Management.

“The Indian IT and IT-enabled Services (IT & ITeS) sector has witnessed a complete turnaround and an unprecedented boost in the wake of COVID-19. Furthermore, the year 2021 promises to be a huge year for the sector fuelled by the growing need and adoption of digital technologies across the board. The sector has not only generated immense job opportunities but has also positioned India as one of the most preferred investment destinations globally.

Given, the current business scenario, we expect a strong push towards policies promoting IT innovation by pushing business-critical and bold policy interventions to propel digital adoption across multiple industries. ‘Digital-first’ and ‘Data-centric’, should be the key focus areas for the Indian government in our view as we push for Digital innovation as an important building block for India’s future growth. We are more than excited about the opportunities that this year has to offer and eagerly look forward to this year’s Budget.”


4. Sameer Nigam, CEO & Co-founder, Stratbeans a company that drives digital transformation through AI-based online learning.

“The Union Budget for FY 22 is one of the most anticipated socio-economic events for this year. As the Government and many other agencies have projected slower economic growth via the last financial year, there will be more emphasis on ‘ease of doing businesses. Needless to say, the general public and businesses are really hopeful for some major relief in the budget announcements. The Government has already taken a slew of measures to reduce the compliance burden upon businesses across industries. The Union Budget will also bring out more ways to ease liquidity for MSMEs. 

The IT industry has been the backbone for Digital India and Startup India. Providing the right incentives to the industry will be the key for the country's economic revival. One such incentive is to simplify the tax-related complexities to encourage global trade of software products from and to India. Some effort in this direction will help increase revenue for the exchequer that can flow back into the country for socio-economic welfare.

Another important area for improvement is to introduce measures that encourage corporates as well as individuals to pay taxes and contribute to the nation’s progress. This will also create a collaborative, nationwide effort towards building a great nation".


5. Narasimhan Raghavan, Director, Raag Technologies and Services Pvt Ltd (RTS), providing best-in-class logistics solutions to leading
manufacturing and distribution companies.

"As the saying goes, every cloud has a silver lining. 2020 has been a game-changing year for the logistics sector. As we await the Budget 2021, we are expecting that the government will take further steps to strengthen the sector with reforms related to GST, and most importantly accelerate the implementation of initiatives under the Sagarmala and Bharatmala projects. It must be noted that logistics is also one of the highest employment-generating sectors currently. Therefore, the government must look at creating a thriving ecosystem for logistics leading to the overall economic growth." 


6. Abhik Mitra, MD & CEO, Spoton Logistics, India's leading engineering and technology-driven express logistics company.

"As India Inc. sets sights on the Budget 2021-2022, I would like to draw the attention of the honourable finance minister towards a few key pain points of the logistics industry that must be addressed in this year's budget. With logistics holding the economy together even during the COVID-19 pandemic and set to play an even more crucial role in current times, the government must look at providing the much-required financial and infrastructural support to the sector.

With India's aim to reduce the logistics cost from the current 14 per cent of GDP to less than 10 per cent, it is imperative for the government to bring about a groundbreaking transformation in the logistics sector that encapsulates an increased use of digital technologies and automation. We urge the government to take dedicated measures to boost digitalisation so as to drive transparency and bring in the required predictability in logistics.

Another key step that the government must take is to bring Fuel under the purview of GST as this could fundamentally transform the Indian logistics sector. While goods are moved from one place to another, it is generally required for the transporter to carry a hard copy of the invoice, the government must also do away with this by way of e-way bill digitalisation. On the demand side, the government can look at driving the overall consumption which could be achieved by reducing personal income tax and GST on various goods, etc." 


7. Jeetender Sharma, Founder & Managing Director, Okinawa Autotech, India's largest Electric 2-Wheeler manufacturer.

“2021 can prove to be a revolutionary year for the electric vehicle (EV) industry. We have high hopes from the union budget this year and are optimistic that the government will continue to take the right steps to place India on the global EV map. With that said, we urge the finance minister to reconsider the current taxation framework applicable on raw material and the final product in case of EVs. While the GST input on raw material is 18%, the tax on outward supplies currently stands at 5%, leading to an implicit inverted duty structure for us (manufacturers).”

He adds, “The central government’s recent move to extend the PLI scheme to the automobile sector including for manufacturing of Advanced Chemistry Cells (ACC) is commendable. While this will definitely give a boost to local manufacturing, better yet, the government must also look at aggravating the domestic demand by further incentivising individual and commercial consumption of EV pan India.

Such a holistic approach would create a thriving ecosystem for EVs and cement India’s position as a global EV hub offering abundant opportunities for growth and attracting huge investments for further innovation.”

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