Industry Experts React to Union Budget 2022-23

Feb 02, 2022, 10:26 IST

Finance Minister Nirmala Sitharaman presented Union Budget 2022-23. The FM’s Budget has drawn mixed reactions from across industries. Sakshi Post reached out to experts in different sectors to know what they think of the Union Budget, here’s what they had to say. Check out how Industry experts reacted to FM’s Union Budget for the financial year 2022-23

Ankur Bhageria, CEO and Founder, CashFlo

As a founder of a startup that is also an MSME business, the Union Budget for FY22-23 is positive for both groups. The COVID pandemic is not yet over, and the liquidity support and incentives provided by the government needed to be sustained into this year as well.

The extension of the ECLGS to March 2023 will be especially welcomed by the MSME sector, which constitutes 95% of ECLGS borrowers. CGTMSE Revamp and Announcement of MSME RAMP are also welcome moves. MSMEs have been hit hard by the pandemic, with well over 60% of them having faced increase in credit terms during COVID so efforts to speed up payments and move to a 100% e-bill system for central govt. procurement will go a long way towards releasing liquidity to vendors. It is important to both create liquidity for MSMEs as well as ensure that it reaches those most in need, and is good to see both aspects covered in this budget.

Extension of tax incentives for startups and new manufacturing companies are also welcome moves, but would have liked to see more support for the startup industry, especially with respect to taxation of ESOPs.

Lastly, the national tele mental health program for counselling is a fantastic step by the government in recognising and providing support to those who need it. This goes a long way towards reducing the stigma around mental health.

Anshul Srivastava, Product Head, Keka Technologies

“Infra, and Rural are the only sectors that were the main focus in this budget. In the Banking sector, introduction of CBDC (Central Bank Digital Currency) using blockchain tech, and terming crypto assets as Virtual Digital Asset (although being taxed at 30%), is a step towards recognising Crypto. This would finally put an end to speculations around banning crypto assets. More focus is on economic growth, but nothing changes much for the working class. This much needed shift in perspective around crypto and digital assets is also expected to open up a whole new avenue of jobs and employment in the country. We're already seeing career opportunities popping up in blockchain just like we're noticing crypto businesses spiraling its way into the layman's economy albeit it being popular in select niches at the moment. Our economy- jobs, employment, business and everything in between - might've been bogged down by the pandemic, but we see an upward graph charting from here on. The country’s economy seems to be stabilising to counter the pandemic’s effects.”

Raushn Jha, Founder & CEO, PDP Media

"Budget 2022-23 has been in favour of startups. As our honorable FM has announced that due to Covid 19 pandemic Tax incentives will be provided for one more year to startups that had already been extended through 2023. As we fall under the same category and most of our clients are emerging startups it will be very considerate for us. As the startup sector has been playing a very crucial role for continuous growth in India' economy for the past few years and with such support from the government, we hope in the coming time innovative startups will get recognised for their hard work and dedication. Also, promotion of startups to facilitate ‘Drone Shakti’ through varied applications is a great initiative by our government."

Sanjeev Dahiwadkar, Founder & CEO of Cognota Healthcare

“The Union Budget 2022 has taken many steps in putting healthcare at the centre of India’s approach to power its future growth. The proposal of launching a National Tele Mental Health Programme is a move in the right direction to provide better access to quality mental health counselling and care services. Proposal to create an open platform for the National Digital Health Ecosystem is also a welcome move. However, with the non-reduction of the GST on medical devices and the lack of tax rationalisation of healthcare services, the government has missed an opportunity to make healthcare affordable for billions of citizens. The pandemic has put healthcare at a pivotal position and the government should provide the right policy environment in the form of tax concessions, investment-friendly regulations till the society develops collective skills to deal with the new normal.”

"We welcome the budget 2022. It is a promising budget to fulfill the dreams of thousands of crypto startups in India by opening various avenues of crypto assets. The announcements done by hon'ble finance minister Nirmala Sitharaman to introduce a 30% crypto tax is an encouraging development indicating the legalization of cryptocurrency in India. Further, the adoption of the digital rupee based on blockchain is a sign of the growth of making digital assets more accessible to the larger masses.

The budget is a gratitude towards the startup ecosystem by giving and accepting the new-age technologies and extension of tax incentives for startups respectively. In the near future, we expect the government will continue to support and encourage digital currencies."

Himanshu Mody, Founder and CEO of Tekno Point

“Startups are increasingly positioned as key enablers of job creation, technical innovation, and economic growth in India. With over 61,000 startups in India currently, we anticipate more potential and innovative firms from young entrepreneurs around the country. Tax reforms for startups will assist aspiring entrepreneurs in managing the fundraising and financial aspects more efficiently in order to strategically attract investors and join the unicorn club. Similarly, the government's emphasis on Digital University and skilling is intriguing because it provides equal possibilities for students and working professionals of all levels and industries to brush up on their abilities and stay relevant in their field. These reforms also significantly contribute to the ease of doing business and the ease of living by introducing structural discipline into the core of corporate operations."

Samir Sathe, Executive VP, Wadhwani Advantage at Wadhwani Foundation, “The budget for 2022-23 has rightly identified a solution for one of the most crucial problems faced by SMEs and MSMEs in India - the credit facilitation. Credit management, job creation, and ease of getting financial assistance through government schemes and services will now be easier as the portals for small businesses will be interlinked. This also adds an organizational structure for these businesses, hence ensuring ease of doing business. Combining the Udyam, e-shram, NCS & Aseem portals will act as a digital enabler, and a go-to-hub for small business owners as these will now function as a capsule for business registration, job identification, and skilled talent sourcing. Performance acceleration programme is an indisputable approach for MSMEs as it will help these businesses identify and rectify business problems in order to yield higher returns and maximize profitability. The government must ensure that the right MSMEs are selected for this programme.”

Sunil Dahiya, Executive VP, Wadhwani Opportunity at Wadhwani Foundation

“Productivity enhancement and skilling are two peas in a pod. The Government's decision to focus on skilling, reskilling, and upskilling, with an emphasis on online training and monitoring through API based skill credentials will ensure that the talent pool in India stands par with the current industry trends. This will most certainly raise the bar for Indian talent across the world, hence reducing unemployment and helping achieve the goal of reaching 60 lakh jobs in the next 5 years. It is also thrilling to know that India will now have a Digital University. Through this, the entrepreneurial education and skill development initiatives by India will be globally identified and will help in attracting investment and talent acquisition opportunities.”

Sanjay Shah, Chief Operating Officer, Wadhwani Foundation - India/SEA, “Though the economic growth suffered due to the COVID-19 pandemic, India has still arisen to become one of the most powerful startup powerhouses in the world. The budget for the upcoming financial year promises India’s economic growth to be at 9.2%, with a special focus on inclusive development and financing of investments, among others. I conclusively believe that the startup ecosystem in India is aiming for a positive boom with the help of tax reforms and benefits. The extension in the redemption of taxes by one more year will be an important determining factor for startups reaching IPO valuations. Additionally, these reforms will unquestionably be a catalyst in helping India achieve the goal of 60 lakh jobs by 2026. Also, the Government’s decision to focus on 5G tech in India opens an array of entrepreneurial and employment-generation opportunities, along with helping every district in India to be exposed more to the world of independent businesses and startups.”

Ameen Khwaja, Founder & CEO, pTron

“The Union Budget has ushered in positive measures for the electronics sector which will give a boost to the sector, especially in the context of Make in India. The #AatmanirbharBharatkabudget with a huge boost to "Make in India" shall generate 6 million jobs and further create competent and skilled manpower that shall compete globally in terms of the quality of goods manufactured. The electronics manufacturing industry is expected to see 30 percent growth in the coming fiscal and to be worth nearly ₹7 lakh crore. It is heartening to see that the Government of India has acknowledged the exponential potential of this sector. There has been an increase in prices of electronics, smartphones especially, owing to the ongoing chip shortage and other COVID-19 induced factors. With duty concessions and domestic manufacturing boost, prices of electronics are expected to decrease which will further boost the demand in the coming days.”

Abhishek Joshhi - Founder of Strengths Masters

“The government has introduced a couple of new initiatives, which will help in many ways in enabling livelihood generation activities across all the parts of the country especially rural areas and small towns; the first is Creation of a formal Digital Eco system for capacity building & skilling. Such eco systems are emerging in our country but still at a nascent stage, a push from the government by linking it with livelihood generation initiatives will provide boast to the grassroots level activities and will include Start up activities, and more start-ups will emerge from small towns. There is a start up movement in our country and more people especially from small towns still do not know how to leverage various schemes, and benefit programs created for them and when they step out from the small towns to fulfill their dreams without adequate information and clarity, they do not have enough resources to sustain their struggle. Having a digital ecosystem linked with livelihood generation activities will equip people from small towns with valuable insights, knowledge and give them a road map to plan for their future.”

Anil K Sood, Professor and Co-Founder - IASCC [The Institute for Advanced Studies in Complex Choices]

Education: Leveraging technology reduce the Digital Divide

The budget has brought additional focus to education this year. We are expecting to see an increased allocation for school as well as higher education. The government is investing to expand the ‘one class-one TV channel’, under eVIDYA programme, from 12 to 200 TV channels. This investment is expected to “enable all states to provide supplementary education in regional languages for classes 1-12.” National Education Mission is expected to get a significantly higher allocation at Rs. 40,000 crore.

A disappointing budget from Household Perspective

As we know, the pandemic has adversely impacted the economic and financial condition of an average urban as well as rural (health care cost and lost earnings) household. While there has been some amount of support being provided through various fiscal and financial measures during the last two years, the budget was an opportunity to help the households rebuild their finances. We have neither seen any reduction in direct taxes nor a major increase in support through various income or cost support programmes. For example, the MNREGA allocation is down by 25,000 crore, compared to the revised estimates and the next year’s expenditure on PM Awas Yojana is the same as the current year (about Rs. 48,000). The lack of support makes it worse, as the households have been bearing the increased cost of petrol, diesel, gas and other daily need goods and services even when the pandemic was destroying lives and livelihoods.

Banking and Finance: Increased Opportunities for Growth

We had few significant announcements that would impact the financial sector – the announcement of launch of digital currency being one of them. In addition, the budget provides additional opportunities for sector’s growth, e.g., the extension of Credit and Finance Guarantee for MSMEs would help enhance the quality of credit portfolio, GIFT city is expected to facilitate sustainable and climate finance in India, provision of government support for blended finance will help banks and other intermediaries participate in financing sunrise opportunities, etc. In addition, the government is expected to drive capital investment through public-private partnership – creating an opportunity for growth of credit as well non-credit financial services.

Urban and Rural Infrastructure: Redefining Mobility

One of the most important announcement in the budget this year is about urban infrastructure. It involves setting up a high-level committee “to make recommendations on urban sector policies, capacity building, planning, implementation and governance.” The central government would also support policy formulation at the state level. The government also expects to find “innovative ways of financing and faster implementation…and “building metro systems of appropriate type at scale.” It expects to make urban mobility easy through “multimodal connectivity between mass urban transport and railway Stations” on priority. In addition, the government has allocated an amount of Rs. 60,000 crore for Jal Jeevan Mission and an amount of Rs. 19,000 for Gram Sadak Yojana. Both the missions have seen their allocation go up substantially this year.

Anshul Srivastava, Product Head, Keka Technologies

Raushn Jha, Founder & CEO, PDP Media

Vicky Jain , Founder, Uknowva

Budget 2022-23 opens up opportunities for startups across health, clean air, hygiene, water, sanitation, etc. Indian startups have a great opportunity to innovate and help to sustain the economy. The budget was clearly pro-growth, pro-technology, pro-infrastructure, and also had an earmarked place for improving healthcare in our country. The initiatives announced by the honourable finance minister will certainly aid economic recovery, whether that’s through capital infusion, change in taxation norms, programs for promoting domestic manufacturing, or development of relevant infrastructure. The Gati Shakti masterplan will lead to world-class infra and the PLI scheme to create at least 60 lakh new jobs in 5 years. It is also an encouraging move from the government to enhance credit guarantee trust for micro and small enterprises which will be revamped with required infusion of funds. With INR 2 lakh crore more for MSMEs, it would provide the much needed boost to the sector.

Layak Singh, Founder & CEO, Artivatic.AI

FM Nirmala Sitharaman’s Union Budget 2022-23 is a rock-solid budget that takes a future-ready strong pro-start-up, pro-technology and green energy stand. No wonder it estimates India’s GDP to grow at about 9.27%. The Budget takes the strong position the nation is poised in despite the challenges of the COVID-19 pandemic due to a successful vaccination campaign, and takes it that much ahead at the macro level. The Gati Shakti masterplan shows a constructive plan for world-class infrastructure and the PLI Scheme to generate at least 60 lakh new jobs over a 5-year period is another welcome move. The initiatives announced by the honourable finance minister will aid economic recovery as it strongly promotes & supports technology and startups, this will definitely boost InsurTech Startups which is still a niche industry and open development opportunities for the sector. The ramp-up of capital expenditure by 35.40% to Rs. 7.50 lakh crore from the earlier Rs. 5.54 lakh crore slab as well as upgrade to the credit guarantee trust for micro and small enterprises with the necessary fund injection, adding approximately an additional Rs. 2 lakh crore in MSME’s bounty, are signs of the government loosening their purse strings for the needy sector and would help SMEs & MSMEs to go for business insurance. The promise of the Emergency Credit Line Guarantee Scheme to extend up to March 2023 with a revamped guaranteed cover of the scheme has been expanded by Rs 50,000 crore is also encouraging. Setting up a fund through NABARD that comprises blended capital with the aim to facilitate finance start-ups in the sectors of agriculture and rural enterprises, is another interesting welcome move.

Sharad Chaudhary, Founder, Dreamz Production House

The union budget has definitely focused on the nation’s growth. With strong emphasis on the agricultural and rural sectors, MSME, infrastructure, education, job creation, digital economy, etc, it is a holistic budget that will have an overall positive impact on the economy. Those businesses directly related to mass events are facing tough times. The event industry is remaining stagnant for almost two years now and the livelihood of millions of people has come to a standstill. The industry has crashed and still the government doesn’t see the need to protect livelihoods as the event industry has been completely ignored in the budget. We do not come under the purview of any ministry that is looking into us and actually taking cognizance of what we do. Hence industry status was absolutely important for us to stay afloat & excel going forward. The government should further enhance the ecosystem by formulating policies, which act as an enabler to support start ups in their entrepreneurial journey and to boost their spirit of excellence. Overall the budget is expansionary bringing a positive sentiment to the overall economy.

Manas Mehrotra, Founder, 315Work Avenue

The Union budget 2O22 seems expansionary in nature that promises economic growth and entails strengthening of infrastructure. It has predominantly focussed on revitalizing the rural economy which is a good move and this will act as a boost to the economy and increase demand in tier-2 and tier-3 cities as well. Extending tax incentive scheme by one more year to start-ups is a welcome move, and it is likely to further encourage innovations and growth that the startup ecosystem is delivering. As most of our clientele fall under this scheme, they can plan their cash flow well with this tax exemption benefit. However, the budget did not have any specific measures for the coworking sector to enable its higher growth be it lower TDS, special tax incentive, etc to enable us to provide the real estate solutions at even economical rates. The post lockdown scenario is bringing in a wave of new opportunities for the coworking players as companies seek out alternative options to reduce costs and capital expenditure. Amidst this new normal, the flexible co-working industry has become more relevant than ever for companies to suit their organizational requirements. As per a recent report, the market size of coworking spaces is expected to double over the next five years at a compound annual growth rate (CAGR) of 15 per cent. Overall the coworking sector, which is now the new mantra for companies, was further expecting improvement in the ease of doing business. Going forward, we hope that the government looks at addressing regulatory concerns and encourage more coworking firms to open up through a series of both financial and non-financial incentives.

Sachin Jain, Managing Director, De Beers India

We are pleased with the budget announcement for our sector, particularly the reduction of customs duty on cut and polished diamonds from 7.5% to 5%. This will spur greater demand for natural and real diamonds and also give an opportunity to diamond companies to boost operations and, in turn, contribute to greater economic growth for the nation. The proposal to create a simplified regulatory framework to enable the use of e-commerce channels to export jewellery will help us seamlessly take forward our initiative to promote trade through the digital mode. This will bring down transaction costs and save time while enabling us to reach out and expand our customer base globally. Overall, we hope that the gems and jewellery sector continues to plays a pivotal role in the growth of the economy

Taranjeet Singh Bhamra, CEO & Founder, AgNext Technologies

I would like to commend the government for putting forward an enterprising vision of India at 100. The agriculture sector has proven its resilience from external shocks like the COVID pandemic, with growth at 3.9% in FY 2021-22, an increase from 3.6% last year. The budget’s focus to increase technological intervention in agriculture value chains will further help to cushion the sector against global uncertainties.

The government’s dedicated focus to increasing investment in the agriculture and the agritech sector will allow for all-inclusive development that will benefit farmers as well as agribusinesses. The proposed PPP (Public Private Partnership) mode scheme to promote the delivery of digital and hi-tech services in the agriculture sector will lead to greater cooperation between the private agritech players and public research institutions.

Fiscal support from the government will provide the necessary impetus for the growth of the rural economy and the export potential of India’s agri-commodities. For agritech sectors, this is a favorable budget that will pave the way for robust growth of the agritech players, especially the start-ups, to scale domestically and internationally. The emerging agritech startups will enjoy the dual benefits afforded to the sunrise agritech sector and start-up ecosystem in the budget of 2022.

Amit Sinha, Co-Founder, Unnati

“Budget has a strong focus on agriculture with a specific focus on the delivery of high tech services, funding of startups through NABARD, focus on “Drone Shakti” for farmers, and climate action. There is a good balance of the short term and long term measures. It’s very forward-looking with a long-reaching impact on how Agriculture will grow in India. These initiatives will solve the core problem of improvement of farm productivity and help improve farm incomes significantly”

Ramani Sastri - Chairman & MD, Sterling Developers Pvt. Ltd.

“Despite the fact that the real estate industry was expecting a number of immediate demand-side pushes for the sector, some significant opportunities were missed. However, the push to infrastructure spending and sops for affordable housing have kept the sector hopeful of positive changes. While affordable housing continued to remain a priority area for the government with few additional reforms, the government could have given further boost to overall real estate which fuels the Indian economy and supports over 250-allied industries. There is a huge opportunity in real estate that would enable faster economic recovery. The real estate sector has started showing signs of recovery after the pandemic disruption. However, it requires careful support from the government in order to sustain the recently-achieved growth momentum. There are currently several grey areas when it comes to schemes, taxation, funding and others where the government should provide a helping hand going forward. It is imperative for the government to pay special attention to the real estate sector and have provisions for its well-being in the near future.”

Shweta Sastri, Managing Director, Canadian International School, Bangalore

The union budget has ushered in positive measures in the field of education which will give a boost to the sector especially in context of the pandemic. A robust education system is a necessity for any growing nation and this is all the more important when the country is aiming to normalize education. The focus on digitization, bridging the rural-urban gap, making online education available to all children are all measures that are welcome. Two years of education regression for school going children meant that we needed to double-up efforts to bridge education gaps. The budget 2022 for the education sector rightly focuses on upskilling and digital learning. The announcement of one class one channel and expansion to 200 channels under e-vidya will enable the reach of online education to a vast body of students where online education is still not widespread. The push to regional education is welcome as this will once again enable people in the rural areas to access quality education in their languages. Another welcome decision on digital university is that it will expand the reach of education to the masses as it will follow a hub and spoke model and emphasize the role of ICT in digital education. The focus on skill training by ITIs will also enable students to be employable in the future. The budget has addressed structural issues in the education landscape and has ensured that all children get access to education. The budget has also well-coincided with the opening of schools as it is important to reverse the learning loss among students. Education clearly is one of the most important investments a country can make in its people and their future. The government must act to meet the needs of an aspiring generation which is looking to the future with great hope. Overall, it has given a boost to the education sector that will result in the nation’s progress.

Niru Agarwal, Trustee, Greenwood High International School

Education is a unique sector where investment has multiple effects. The state of education is often a healthy predictor of the country's overall development and well-being. While quality education holds the key to inclusive growth, education in India needs to be recognised as an equaliser especially in the context of the pandemic. It is also a crucial instrument that can bridge the socio-economic divide in our country. Establishing a Digital university and over 200 channels covering multiple regional languages under the One class, one TV channel' program are two very innovative and path breaking initiatives which will enable students across the country to access quality education far and wide through the hub and spoke model. The development of quality e-content to empower and equip teachers with digital tools of teaching and facilitating better learning outcomes is a welcome measure to help children. With the challenges of the online learning arrangements, the government’s decision to enhance digital learning with E VIDYA will be a boost to the education sector. There was a necessity to train and build skills among children as this would make them employable and this has been addressed by focus on ITI’s which will undertake this task. The digital gap has also proven to be a bane for the education sector in the context of the pandemic. Education plays an important role in bringing a change in society across generations and more so now in this technological age. Now proper implementation is needed to take conducive steps to bridge the digital divide gap so that learning solutions can be easily accessed by everyone as it’s a critical need at the ground level. The overall focus of the budget has been to make education robust and responsive to students’ needs in terms of quality education in rural areas, skill development, research & development and employability. Going forward, more rigorous platforms should be developed and curated for students to learn with ease and discipline.

Anuj Puri, Chairman – ANAROCK Group

Providing a broad-spectrum booster shot to the economy, Union Budget 2022-23 is progressive – especially with its emphasis on building the infrastructure of the country. The FM clearly emphasised the top priorities of the government - PM Gati Shakti for sustainable growth, inclusive development, productivity enhancement, and financing of investments.

Notably, the government also expanded the Capex target by 35.4% - from INR 5.54 lakh crore to INR 7.50 lakh crore - which may help boost overall spending towards economic growth. The budget also emphasises on the need for proper urban planning, provides some relief to states while keeping the fiscal deficit well under control.

In another major positive, the government’s aim to create 6 million new jobs over the next 5 years will enable growth of residential real estate across the country.

Some of the other major highlights of the Budget which will directly or indirectly IMPACT the real estate sector are:

The government’s unwavering focus on infrastructure and sustainability will drive real estate growth over the next one year. For instance, the National Highway network will be expanded by 25,000 kms in 2022-23. PM Gati Shakti will encompass the seven engines for multi-modal connectivity for the states with speedier implementation of development projects through technology to facilitate faster movement of people and goods through INR 20,000 crore financed by the govt to speed up this project. Further, the 100 PM Gati Shakti Cargo terminals to be developed over next 3 years will provide much impetus to the logistics sector.
Allocation of INR 48,000 Cr for PMAY Urban and Rural will push forward its ‘Housing for All’ initiative. Under PMAY, the government plans for 8 Mn houses in FY’23.
As anticipated, the FM also tried to rejuvenate the MSMEs sector which has a multiplier impact on the growth of the overall economy. The ECLGS scheme has been extended till March 2023 for the MSMEs. Besides providing an impetus to the industrial development, this move is likely to have a rub-off effect on the real estate sector as well given that the catastrophic impact of the pandemic on this sector (MSMEs) slowed down the demand for affordable housing in 2021. We saw the home loan eligibility for many affordable housing buyers impacted by the pandemic due to loss of jobs and many MSMEs being shut down - resulting in significantly lower sales in this category.

If we consider numbers in terms of the new supply as well, back in the pre-Covid year of 2019, affordable housing share stood the highest - 40% of the total 2,36,560 units launched across the top 7 cities then. While in 2021, we saw the affordable new supply share come down to 26% for nearly the same number of units launched in the top 7 cities (approx. 2,36,700 units). Well, not to say that demand for affordable homes had diminished because it still has the maximum demand in India. It’s just that buyers went into a wait and watch mode. Affordable housing demand will gain momentum once the economic impact of the pandemic begins to subside for this target audience.

To facilitate digital inclusion and aid fund transfer, 100% of 1.5 lakh post offices will come under the complete banking system. This will enable smooth and transparent real estate transactions in the rural areas and also encourage loan disbursal to the semi urban population.
Increased focus on tier 2 and tier 3 cities for urban development. A high-level panel to be set up for urban planning.
Data Centres given infrastructure status will give an impetus to this segment of the real estate sector.

Bibin Babu, Co-founder, MetaSpace

"It was certainly a growth budget, and the introduction of India's own digital currency ensures the cryptocurrency industry's future success. The tax provision of 30% was announced in the Union budget 2022 for digital assets. No expenditure deduction except the cost of acquisition. It's a win-win situation! Now, retail investors should no longer worry about whether they can invest in cryptos.”

Mo Akram, Ideator, MetaSpace

"Union Budget 2022 confirms more crypto adoption on the way as it presents fine-tuned clarity on the crypto landscape. There will be a sensational boom for cryptocurrency as more emerging investor classes begin to recognize the potential of it, leading to more blockchain innovations. Yet another step towards positive crypto regulations and taxation clarity. "

Abhay Aggarwal, Founder & CEO, Colexion

Cryptocurrency seems to have caught the government’s attention after FM recognised the currency as virtual digital assets. However, the biggest eye-catching part is the government’s decision on crypto taxation. It is noteworthy to consider this move as a progressive step towards monitoring, authenticating and regulating the crypto ecosystem in the country and bringing possible transformations.

The highlight of the Budget for me is that India will be launching its own digital currency by next year. It’s a historic move as people are finally clear that digital currency is here to stay and can make a rational choice while investing in cryptocurrency. I hope this catches on and banks, too, start getting involved with the crypto industry as well.

Amit Singal, General Partner, Fluid Ventures

"Startups have got a boost in this year’s Union Budget. Among the many incentives proposed in the Budget is the reduction of voluntary exit, where the government has allowed the closure of a private limited company in 6 months of non-functioning. This will not only help accelerate and provide relief to startups wanting to shut a business but encourage them to experiment. Earlier they had to run the company for 18 months, even after closure, to avail of the benefit of the Fast Exit facility.

The surcharge on Long Term Capital Gain (LTCG) has been capped to 15%, which is again a good move to bring more HNIs into startup Angel investment.”

Bibin Babu, Co-founder, MetaSpace

"It was certainly a growth budget, and the introduction of India's own digital currency ensures the cryptocurrency industry's future success. The tax provision of 30% was announced in the Union budget 2022 for digital assets. No expenditure deduction except the cost of acquisition. It's a win-win situation! Now, retail investors should no longer worry about whether they can invest in cryptos.”

Mo Akram, Ideator, MetaSpace

"Union Budget 2022 confirms more crypto adoption on the way as it presents fine-tuned clarity on the crypto landscape. There will be a sensational boom for cryptocurrency as more emerging investor classes begin to recognize the potential of it, leading to more blockchain innovations. Yet another step towards positive crypto regulations and taxation clarity. "

Abhay Aggarwal, Founder & CEO, Colexion

Cryptocurrency seems to have caught the government’s attention after FM recognised the currency as virtual digital assets. However, the biggest eye-catching part is the government’s decision on crypto taxation. It is noteworthy to consider this move as a progressive step towards monitoring, authenticating and regulating the crypto ecosystem in the country and bringing possible transformations.

The highlight of the Budget for me is that India will be launching its own digital currency by next year. It’s a historic move as people are finally clear that digital currency is here to stay and can make a rational choice while investing in cryptocurrency. I hope this catches on and banks, too, start getting involved with the crypto industry as well.

Amit Singal, General Partner, Fluid Ventures

"Startups have got a boost in this year’s Union Budget. Among the many incentives proposed in the Budget is the reduction of voluntary exit, where the government has allowed the closure of a private limited company in 6 months of non-functioning. This will not only help accelerate and provide relief to startups wanting to shut a business but encourage them to experiment. Earlier they had to run the company for 18 months, even after closure, to avail of the benefit of the Fast Exit facility.

The surcharge on Long Term Capital Gain (LTCG) has been capped to 15%, which is again a good move to bring more HNIs into startup Angel investment."

Ashwini Jain,CEO & Cofounder, ForeignAdmits

Overall budget was good and it was a win for the educational sector. The launch of e-passport will be a huge support for students aspiring to study abroad as it will save their time at the immigration counters. Announcement on the running of a digital university for world class universal education is a good idea but not sure focusing a lot on the regional language will be helpful for the youth in getting relevant jobs. Rather than this, the government can focus on providing English education at the foundation level for rapid advancements. Putting increasing effort on New skill development courses is a great move as today's youth are lacking in skills and it will create more job opportunities. Revising the syllabi of agricultural universities is beneficial. Infact, it should be extended to traditional engineering sectors like electrical, mechanical, civil etc. Setting up of foreign universities in GIFT city will allow us to learn financial innovations done by other countries and India has a dire need of this. E-learning content delivery in rural areas is definitely a noteworthy initiative by the government. E-labs or virtual labs will be very useful for students in today's time. Although a little disappointed to see scholarship cuts for girls' education and no relief on education loans.

Vidya Narayanan, Co-Founder & CEO, Rizzle

We welcome the well-balanced budget, which attempts to focus on all the sectors, to accelerate economic recovery. While acknowledging the start-up sector as a growth driver of India’s economy, the finance minister has reaffirmed the Government’s support for the sector by extending the eligibility for claiming tax holidays by another year. Similarly, it has extended the capital gains exemption for investment in start-ups by one more year. This will help boost funding. On the whole, this year’s budget is pro-growth, with an emphasis on digitalization and ease of doing business.

Sudha Srinivasan, CEO, The/Nudge Centre for Social Innovation

The need for a transformative approach that bridges the divide between our farmers and access to technology, is of paramount importance in a majorly agrarian economy like ours. The plan to deliver digital and hi-tech services to farmers with involvement of public sector research and extension institutions, along with private agri-tech players, and stakeholders of agri-value chain, a scheme in PPP mode is something to watch out for. We also welcome the move to create a fund to finance startups for agricultural and rural development.

We look forward to collaborating with central and state governments in mission mode to enhance reach of agri-tech based solutions to youth and farmers of this country. We seek to partner with stakeholders across the agricultural value chain to further skill development in this space and increase employability of educated youth to enhance productivity, and make India truly Aatmanirbhar in agriculture. The creation of blended capital through NABARD for startups in agriculture & rural enterprise, relevant to farm-produce value chain and to support Farmer Producer Organisations is welcome.

Mr. Vibhor Sahare, CEO & Co-Founder, ANS Commerce.

The Production Linked Incentive Scheme, which aims to achieve the Atma Nirbhar Bharat goal, has received a positive response from local MSMEs seeking government assistance amid these challenging times. The government expects that by implementing the program, these sectors will be able to generate over 60 lakh jobs and INR 30 lakh crore in terms of output over the next five years, thereby boosting the country’s economy substantially. To help the struggling MSME sector, the honorable Finance Minister indicated during the Budget announcement that the Emergency Credit Line Guarantee Scheme (ECLGS) will be extended till March 2023. The scheme’s coverage has been increased by INR 50,000 crore, bringing the total to over INR 5 lakh crore. MSMEs like Udayam, e-shram, and NCS will be able to benefit from this year’s Union Budget. Overall, it’s a positive sign for MSMEs and the startup ecosystem."

Dr Himanshu Gandhi- CEO & Co-founder of Mother Sparsh

We are glad that the Finance Minister acknowledged on the floor of the House that startups have emerged as drivers of growth of India's economy. Extension of tax benefits for startups up to March 31, 2023 is a welcome step. The government has also focused on inclusive development of all, including startups. One of the highlights certainly is the announcement pertaining to 'Drone Shakti' wherein startups would be promoted to use drones as a service through various use cases and applications. The other significant announcement made by the Finance Minister, extending the Emergency Credit Line Guarantee Scheme to Rs 5 lakh crore and till the end of March next year, is yet another boost for small, medium and micro enterprises.

Sadaf Sayeed, CEO, Muthoot Microfin

''This is a very sensible and growth-oriented budget. FM has taken care of the crucial needs of the microfinance industry as well as the common man. The bold Capex allocation indicates the commitment of the government towards reviving the economy, it will definitely help in creating more jobs. Further, it will also promote private investment, complementing the government's infrastructure push leading to robust economic growth. Allocation to ECLGS has been increased 10-fold, this will give impetus to banks’ credit growth. It is a big positive for MFI industry; more funds would be available for disbursement and will help the rural economy to revive''

Chandresh Sharma - CEO, Techpanion

"The budget laid impetus on the elimination of tedious documentation for the logistics and inventory sector, enabling digital transformation and automation along with an increased scope for improving international competitiveness. Along with being time and cost saving, now there would be more data transparency.

Startups have played a crucial role in empowering the nation. Acknowledging their efforts, there were tax benefits announced to boost the ecosystem. In today's budget the government has also emphasized on skilling and empowering the MSME’s for further formalizing the economy and enhancing entrepreneurial opportunities. For helping MSME’s become resilient, competitive and efficient, a 6000 cr program has been rolled out. Also Credit Guarantee Trust for Micro and Small Enterprises (CGTMSE) scheme will be revamped with required infusion of funds. Further increasing employment opportunities."

Kanav Singla, Founder & CEO Metadome (formerly Adloid)

“Global impact of the pandemic has accelerated technology and digital adoption across industries. And with the advent of the virtual world with Metaverse, all major big tech companies across the world are focussing on developing new tools to provide virtual immersive experiences for individuals and brands. This year, the government was expected to take a progressive step towards making India a hub for emerging technologies like AR/VR/Blockchain, by including special incentives and subsidies for emerging tech and its users, to generate growth opportunities for this new industry. However, the announcement of a 30% tax on the income from digital assets; might see a fall in the number of digital creators that are looking to create NFTs for the virtual world."

Vibha Singh, VP, Strategy and Communication, Et MediaLabs.

“The union budget of 2022 has brought forward a lot of interventions, which once implemented meticulously and with utmost efficiency, can result in tremendous growth for the country.The government's focus on Start - ups and them being looked at as the drivers of growth has been monumental in extending the period of incorporation of eligible start-ups by one more year for tax incentives. This step will encourage the entire Start - up ecosystem and might also result in a higher influx of new business ventures.The mention of 5G and details about its auction can be looked at as the foundation stone of growth for India’s digital economy, its businesses, and even its new-age consumers. 5G will be one of the major drivers to influence how the digital economy works and how consumers behave in a digital world.”

Major Dinesh Sharma, Founder Academy of Pastry & Culinary Arts

“The government's vision of developing a skill based education system will get a new direction with this year’s budget announcement. What is interesting is the government's decision to develop digital infrastructure which is futuristic, especially due to students losing out on education during current pandemic crises. We need to be future ready.”

Sumit Gupta, Founder, Whizard API:

“Tech-enabled startups have played a crucial role in empowering people to help them tackle the gripping effects of the Covid-19 pandemic. The fact that our finance minister used a digital format to deliver her address in the Union budget 2022 speaks volumes about the use of technology for good governance. Accordingly, innovation has been awarded an extended tax benefit of 1 year thereby giving the necessary impetus to startups working towards establishing an Atmanirbhar Bharat. Furthermore, digitization measures such as Drone shakti policy, digital banking and fintech amalgamation, digital university and introduction of digital rupee should help give the much needed thrust to establish a digital face of Amrit Kal - from India at 75 to India at 100.”

Sumit Gupta, Founder, Viral Pitch:

“With 2 lakh cr of budget allocation for MSMEs, it's more obvious than before that the startup ecosystem will be thriving like a rage.Now, it's interesting to see that finally the separate Animation and Gaming Task force will be set up, and made its way to the budget offering immense potential to employ youth and empower them. I am optimistic about the fact that this will clearly pave the emergence of new brands and creators in this space of Visual effects, Gaming and Comic Sector creating more opportunities to further accelerate creators' economies. This will also lead to build a better and stronger base of our domestic capacity in the line of serving the markets and efficiently cater to global demands and collaborations with a pool of global creators in the niche. Also, the introduction of digital rupee by using blockchain will indeed prove to be a booster for Fintech, making people more Crypto oriented this year. Certainly, Metaverse, NFT, Web 3.0 will have a significant role to play in the brand promotional landscape, starting from this year onwards.”

Alok Bansal, Visionet Systems India's MD and Global Head of BFSI Business

Digital transformation is the way forward and the news that digital rupee using blockchain and other technologies will be issued by RBI starting 2022-23, is something that will have lasting impact as far as the BFSI industry is concerned. I also find the idea of 75 digital banks in 75 districts to be interesting because as an industry, we have been asking for a policy boost that would increase inclusive banking. It would be also exciting to watch how post offices that will be linked now with a core banking solution will help push financial inclusion. Data exchange among all-mode operators that will now be brought under the umbrella of a unified logistics interface, will hopefully serve industries and consumers well. As an industry leader, I have been vocal about the need to upskill the youth and so the launch of a Skilling & Livelihood e-portal is something I have great expectations from.

Sunil Chordia, Chairman & Managing Director of Rajratan Global Wire Ltd

"The Union Budget did a phenomenal job of promoting long term growth. The increased outlay on capital expenditure with an investment on the infrastructural sector of Rs. 7.5 lakh crores will substantially boost the economy. The extension of National highways by 25,000 kms along with an outlay spending of Rs. 48,000 crores on PMAY in the budget is a very pragmatic step taken by the Government. There has been a huge emphasis on pro-digitization within the budget, especially in the education, rural, banking and agricultural sectors. This will prove to be a catalyst for a better future for our country."

Dr. Gayatri Kamineni, COO, Kamineni Hospitals

"The Union Budget is a progressive one that holds the potential to tackle the economic challenges faced by the country in the post-COVID period. It is heartening to see Finance Minister Nirmala Sitharaman’s focus on sectors like Health, including Digital Health Ecosystem and Mental Health and Wellbeing.

The FM’s announcement of the National Digital Health Ecosystem is laudable. The open platform that will consist of digital registries of health providers, health facilities, unique health identity and universal access to health facilities, will go a long way in providing quality and on-demand healthcare to the country’s people.

Realising the tremendous pressure piled on the minds of the people of India due to the COVID-19 pandemic, the FM’s announcement of the National Tele Mental Health programme couldn’t have come at a more opportune time.

We welcome the Union Budget for financial year 2022-23 and look forward to working with the government and all stakeholders to bring quality healthcare to the people of India."