New Delhi, India, July 03, 2019- India’s much awaited Union Budget for the fiscal year 2019-20 will be presented by the Finance Minister Nirmala Sitharaman on July 05, 2019. This budget is expected to lay focus on start-up eco-system in the country and announce various incentives for the next few years.
Here are some of the organizations in India with their expectations from this year’s budget (Fiscal 2019-20)
Indroneel
Dutt, CFO, Cleartrip: “We are optimistic and hopeful that the
government will continue to be open-minded and maintain the impetus of its past
initiatives while bringing necessary reformations to further enable the
aviation sector. The Regional connectivity Scheme titled UDAN needs particular
attention and allocation in this Budget. Increased digital penetration in the
last few years has been one of the biggest contributors to the rise of the
Indian travel industry. So, we expect the budget to sustain and accelerate
India’s digital journey. We also hope that the Government will bring necessary
provisions to accommodate four different slabs under ‘One GST Rate’ in this
budget. Simplifying input credit mechanism on air and accommodation services
including big-ticket transactions like travel bookings, along with processes
like GST filing, will provide a fillip to the sector. As this sector is one of
the most organized and tax compliant industries in India, we further hope that
the Government will take necessary actions to remit or remove TCS entirely.
This will alleviate the unnecessary financial burden on the airlines and the
OTA’s which will translate to passengers getting superior aviation services at
lesser fares.”
Dutt, CFO, Cleartrip: “We are optimistic and hopeful that the
government will continue to be open-minded and maintain the impetus of its past
initiatives while bringing necessary reformations to further enable the
aviation sector. The Regional connectivity Scheme titled UDAN needs particular
attention and allocation in this Budget. Increased digital penetration in the
last few years has been one of the biggest contributors to the rise of the
Indian travel industry. So, we expect the budget to sustain and accelerate
India’s digital journey. We also hope that the Government will bring necessary
provisions to accommodate four different slabs under ‘One GST Rate’ in this
budget. Simplifying input credit mechanism on air and accommodation services
including big-ticket transactions like travel bookings, along with processes
like GST filing, will provide a fillip to the sector. As this sector is one of
the most organized and tax compliant industries in India, we further hope that
the Government will take necessary actions to remit or remove TCS entirely.
This will alleviate the unnecessary financial burden on the airlines and the
OTA’s which will translate to passengers getting superior aviation services at
lesser fares.”
Saru
Tumuluri, CEO, Khosla Labs: “Innovation in fintech should be
driven more aggressively by the regulators. The regulatory sandboxes initiative
needs to go live as quickly as possible starting with all the financial
regulators enabling all the fintech players to develop more products in an
accelerated manner – this will be a big boost in for the fintech landscape of
India. A fintech innovation fund should be created to help boost startups in
digital identity and fintech space.”
Tumuluri, CEO, Khosla Labs: “Innovation in fintech should be
driven more aggressively by the regulators. The regulatory sandboxes initiative
needs to go live as quickly as possible starting with all the financial
regulators enabling all the fintech players to develop more products in an
accelerated manner – this will be a big boost in for the fintech landscape of
India. A fintech innovation fund should be created to help boost startups in
digital identity and fintech space.”
Saurav
Goyal, CFO, Money View: “The Indian government is taking
numerous positive proactive steps to create a stronger ecosystem for the
nation’s vibrant start-up market. Yet beyond physical spaces and support
systems, the policy ecosystem must also be shaped to encourage risk-taking,
innovation and growth. The Government as part of the budget should provide
necessary clarity in terms of taxation norms and make a requisite change in the
policies in accordance with the latest business practices, post factoring
another regulatory requirement. The way forward on policy-making in India must
follow a truly consultative and multi-stakeholder model that ensures a wide
representation of interests at all stages of the process. This not only
complies with international best practices but will also allow India to balance
its national interests with access to global markets.
Goyal, CFO, Money View: “The Indian government is taking
numerous positive proactive steps to create a stronger ecosystem for the
nation’s vibrant start-up market. Yet beyond physical spaces and support
systems, the policy ecosystem must also be shaped to encourage risk-taking,
innovation and growth. The Government as part of the budget should provide
necessary clarity in terms of taxation norms and make a requisite change in the
policies in accordance with the latest business practices, post factoring
another regulatory requirement. The way forward on policy-making in India must
follow a truly consultative and multi-stakeholder model that ensures a wide
representation of interests at all stages of the process. This not only
complies with international best practices but will also allow India to balance
its national interests with access to global markets.
Digital
India requires a private and public sector synergy. The engagement of the
private sector in national development programs has the potential to serve and
develop ends across any and all sectors. It will support the government by
providing suitable infrastructure and technology-led facilities to consumers.
Besides this, there will be a good inflow of innovative ideas and modern
technologies from the private sector that will give a boost to the Digital India
Programme.”
India requires a private and public sector synergy. The engagement of the
private sector in national development programs has the potential to serve and
develop ends across any and all sectors. It will support the government by
providing suitable infrastructure and technology-led facilities to consumers.
Besides this, there will be a good inflow of innovative ideas and modern
technologies from the private sector that will give a boost to the Digital India
Programme.”
Mahhaguru
Gaurav Mittal, M.D., Mahhaguru Navgrah Private Limited: Products
which have a quick turnover, and relatively low cost are known as Fast Moving
Consumer Goods (FMCG); Examples are toiletries, soap, cosmetics, tooth cleaning
products, shaving products and detergents.
Gaurav Mittal, M.D., Mahhaguru Navgrah Private Limited: Products
which have a quick turnover, and relatively low cost are known as Fast Moving
Consumer Goods (FMCG); Examples are toiletries, soap, cosmetics, tooth cleaning
products, shaving products and detergents.
Expectation
of FMCG industry from Budget 2019-2020
of FMCG industry from Budget 2019-2020
1. FMCG
industry has now become a low margin industry business and one in FMCG business
can sustain only on high volumes. GST on branded products starts from 5% to 12,
18 and 28% where on unbranded items its zero percent; somewhere there is a need
to bring the whole FMCG industry under just one lowerest most GST range else
its giving boost to unbranded items.
industry has now become a low margin industry business and one in FMCG business
can sustain only on high volumes. GST on branded products starts from 5% to 12,
18 and 28% where on unbranded items its zero percent; somewhere there is a need
to bring the whole FMCG industry under just one lowerest most GST range else
its giving boost to unbranded items.
2. A
major cost component for deciding the product landing cost is dependent on Transportation
cost. Freights play a significant role in cost of the product and hence govt to
look into fuel cost, toll taxes etc. and bring the transportation cost
significantly down.
major cost component for deciding the product landing cost is dependent on Transportation
cost. Freights play a significant role in cost of the product and hence govt to
look into fuel cost, toll taxes etc. and bring the transportation cost
significantly down.
3. Unnecessary
monthly returns are headache; Monthly GST returns are really headache (2
returns are on month basis GSTR-1 & GSTR-3B right now). some simple way and
just quarter/ annual returns should be sufficient otherwise they are giving
chance for corruption.
monthly returns are headache; Monthly GST returns are really headache (2
returns are on month basis GSTR-1 & GSTR-3B right now). some simple way and
just quarter/ annual returns should be sufficient otherwise they are giving
chance for corruption.
4. If
GST remains same on each category of product then there is no need for each
category license; single HSN code and license should suffice. It’s a headache
and giving chance for corruption.
GST remains same on each category of product then there is no need for each
category license; single HSN code and license should suffice. It’s a headache
and giving chance for corruption.
5. Companies
expect government to reduce Corporate tax 20%.
expect government to reduce Corporate tax 20%.
6. Payment
of TDS should be quarterly basis for small scale or MSME Regd. companies etc.
of TDS should be quarterly basis for small scale or MSME Regd. companies etc.
7. Assessment
or order should be complete within 1 years.
or order should be complete within 1 years.
Subhash
Nagpal, CEO and Founder, Comparepolicy.com: “We expect some big
bang reforms in the insurance sector like creating a provision for making
pension from life insurance products tax-free, and also provide tax exemption
for life insurance pension plans under special sections. The sector also
requires a separate tax exemption for pure protection life insurance policies.
Most importantly, there is an urgent need to increase FDI limit in insurance
and insurance intermediaries.
Nagpal, CEO and Founder, Comparepolicy.com: “We expect some big
bang reforms in the insurance sector like creating a provision for making
pension from life insurance products tax-free, and also provide tax exemption
for life insurance pension plans under special sections. The sector also
requires a separate tax exemption for pure protection life insurance policies.
Most importantly, there is an urgent need to increase FDI limit in insurance
and insurance intermediaries.
We
also believe that the government needs to shed more light on the Ayushman
Bharat scheme and also enlist processes to fund and operate it better. There is
also the need to link Home Insurance to Home Loans so that losses to property
arising out of catastrophe can also be covered. When it comes to corporates,
employee health insurance should be made mandatory across industries and
sectors.”
also believe that the government needs to shed more light on the Ayushman
Bharat scheme and also enlist processes to fund and operate it better. There is
also the need to link Home Insurance to Home Loans so that losses to property
arising out of catastrophe can also be covered. When it comes to corporates,
employee health insurance should be made mandatory across industries and
sectors.”
Nilyanka
Bhushan, Managing Partner and Co-founder at Sigma Ventures: The
budget should focus on the generation of employment through growth targets that
exceed the past twenty year performance.
Bhushan, Managing Partner and Co-founder at Sigma Ventures: The
budget should focus on the generation of employment through growth targets that
exceed the past twenty year performance.
For
this purpose, the government should actively increase support to small and
medium industries. Increase of facilities for seed and growth equity funding
for startups and SMEs, provision of simplified and incentive-based credit
facilities to help the manufacturing sector grow should be among the top
priorities. This will catalyse the innovation and entrepreneurship that are
India’s natural strengths.
this purpose, the government should actively increase support to small and
medium industries. Increase of facilities for seed and growth equity funding
for startups and SMEs, provision of simplified and incentive-based credit
facilities to help the manufacturing sector grow should be among the top
priorities. This will catalyse the innovation and entrepreneurship that are
India’s natural strengths.
Additionally,
with the residential real estate sector in doldrums and near jobless growth,
government needs to put into place measures to revive the troubled housing
market. Purely lowering interest rates might not work. Long term resolution of
the liquidity crisis in NBFCs will also need to be addressed. As the revival of
real-estate is a must for employment, it will be very important to look at what
the government proposes in the budget.
with the residential real estate sector in doldrums and near jobless growth,
government needs to put into place measures to revive the troubled housing
market. Purely lowering interest rates might not work. Long term resolution of
the liquidity crisis in NBFCs will also need to be addressed. As the revival of
real-estate is a must for employment, it will be very important to look at what
the government proposes in the budget.
Addressing
NBFC debt crisis- A financing crunch is hurting India’s economic growth that
the non-bank financing companies have compounded and are finding their troubles
worsening as a crisis of credibility starts to escalate. We will have to wait
and watch how the budget will address these issues.
NBFC debt crisis- A financing crunch is hurting India’s economic growth that
the non-bank financing companies have compounded and are finding their troubles
worsening as a crisis of credibility starts to escalate. We will have to wait
and watch how the budget will address these issues.
Focus
Areas- The two sectors that should receive maximum attention are defense and
agriculture-based businesses. The reduction of India’s defense imports bill can
be achieved by strongly encouraging indigenous suppliers in preference to imports.
Integration of the defense sector into the civilian economy to the maximum
extent possible will enable a quantum jump in employment as seen in all
advanced economies. Similarly, agriculture-based businesses should be
encouraged through the provision of finance and infrastructure incentives. This
will also enable a quantum jump in productive employment and reduce the
migration from villages to cities that has occurred during the past fifty
years.
Areas- The two sectors that should receive maximum attention are defense and
agriculture-based businesses. The reduction of India’s defense imports bill can
be achieved by strongly encouraging indigenous suppliers in preference to imports.
Integration of the defense sector into the civilian economy to the maximum
extent possible will enable a quantum jump in employment as seen in all
advanced economies. Similarly, agriculture-based businesses should be
encouraged through the provision of finance and infrastructure incentives. This
will also enable a quantum jump in productive employment and reduce the
migration from villages to cities that has occurred during the past fifty
years.
While
presenting the budget; government should seize the opportunity to reshape India
as an innovation economy instead of remaining a services and agriculture
economy. Benchmarks should be set for both the public and private sectors to
perform to a uniform set of standards both financially and ethically. This will
lead to a complete transformation of the Indian landscape from a few select
affluent clusters surrounded poverty to a more equal and broad-based economy
where a rising tide truly lifts all the boats.
presenting the budget; government should seize the opportunity to reshape India
as an innovation economy instead of remaining a services and agriculture
economy. Benchmarks should be set for both the public and private sectors to
perform to a uniform set of standards both financially and ethically. This will
lead to a complete transformation of the Indian landscape from a few select
affluent clusters surrounded poverty to a more equal and broad-based economy
where a rising tide truly lifts all the boats.
Amit
Gossain, MD, KONE India and Chairman, Real Estate & Building Technology,
CII:
“The Union Budget 2019 is expected to be pro-growth and forward-looking as
Infrastructure Sector has been identified as the backbone of Nation’s
Development and Quality of life by the Government. It is likely to stimulate
demand and boost economic growth, on the back of rising urbanization and
increasing number of high-rise residential and commercial buildings across the
country. Landmark reforms like RERA & GST, that have been instrumental in
bringing transparency in the Real Estate Sector, is expected to help accelerate
the sector with the New Regulatory regime. The earlier Housing initiatives of
the Government, should get a boost with necessary reforms, thus enhancing the
overall growth of the Indian Economy. There are many positives anticipated in
the Infrastructure Sector; the introduction of Tax-Free Bonds to boost
investment, streamlining of land acquisition process and increase capital
outlay towards Infrastructure Sector by 12-18 percent, to name a few.
Gossain, MD, KONE India and Chairman, Real Estate & Building Technology,
CII:
“The Union Budget 2019 is expected to be pro-growth and forward-looking as
Infrastructure Sector has been identified as the backbone of Nation’s
Development and Quality of life by the Government. It is likely to stimulate
demand and boost economic growth, on the back of rising urbanization and
increasing number of high-rise residential and commercial buildings across the
country. Landmark reforms like RERA & GST, that have been instrumental in
bringing transparency in the Real Estate Sector, is expected to help accelerate
the sector with the New Regulatory regime. The earlier Housing initiatives of
the Government, should get a boost with necessary reforms, thus enhancing the
overall growth of the Indian Economy. There are many positives anticipated in
the Infrastructure Sector; the introduction of Tax-Free Bonds to boost
investment, streamlining of land acquisition process and increase capital
outlay towards Infrastructure Sector by 12-18 percent, to name a few.
Prime
Minister’s Mission of Housing for All by 2022 will enter its significant second
phase, which is bound to be an extremely exciting time for all Industry
stakeholders. The low-interest rate loans, special interest rate for Women, Tax
exemptions with specific investments, Rollover Capital Gains, Capital outlay
under PMAY and other such schemes will support the Infrastructure growth. However, building of such large no. of
housing, much of which is based on tenders should ensure houses and their
related fixtures such as fittings, Elevators and Building material is of high
quality with high longevity and safety factors. The Budget is also expected to
provide direction on the long-term projects being undertaken under Smart Cities
Mission, and Atal Mission for Rejuvenation and Urban Transformation (AMRUT)
programme. To continue the momentum for Indian Realty and Project the next wave
of the Economic Growth, government should allow tax benefits for investments in
Real Estate Investment Trusts (REITs).
Minister’s Mission of Housing for All by 2022 will enter its significant second
phase, which is bound to be an extremely exciting time for all Industry
stakeholders. The low-interest rate loans, special interest rate for Women, Tax
exemptions with specific investments, Rollover Capital Gains, Capital outlay
under PMAY and other such schemes will support the Infrastructure growth. However, building of such large no. of
housing, much of which is based on tenders should ensure houses and their
related fixtures such as fittings, Elevators and Building material is of high
quality with high longevity and safety factors. The Budget is also expected to
provide direction on the long-term projects being undertaken under Smart Cities
Mission, and Atal Mission for Rejuvenation and Urban Transformation (AMRUT)
programme. To continue the momentum for Indian Realty and Project the next wave
of the Economic Growth, government should allow tax benefits for investments in
Real Estate Investment Trusts (REITs).
Overall,
we are looking forward to an Inclusive Budget and waiting to see a NEW INDIA
focusing on positioning the Economy for future sustainable growth.”
we are looking forward to an Inclusive Budget and waiting to see a NEW INDIA
focusing on positioning the Economy for future sustainable growth.”
Email: startupterminal@gmail.com
