Tech Industry Welcomes Union Budget 2020

Here are some reactions on Union Budget 2020 from tech & online Industry:

Satya Prabhakar, CEO & Founder, Sulekha.com commented: 

Satya Prabhakar, founder of Sulekha.com expressing his views on Union Budget 2020

“The budget has provided some incentives for MSMEs and it should hopefully translate into better overall performance for the sector in the coming quarters. The government’s scheme to provide subordinate debt by banks as quasi-equity to MSME entrepreneurs and the extension of the debt restructuring window to March 31^st 2021 for MSMEs are both good moves. They will provide an impetus to the sector by improving access to working capital credit and encouraging more entrepreneurship. The budget also seeks to amend regulation to enable NBFCs to extend invoice financing to the MSMEs through TReDS, which will help MSMEs have better control over their cash flows. The budget has also proposed to raise the turnover threshold for audit from the existing Rs. 1 crore to Rs. 5 crores and this move will ease compliance burden on MSMEs.”

Mr. Diwakar Nigam, Managing Director, Newgen Software.

Diwakar Nigam of NewGen Software highlighted his perspective on Union Budget 2020

“The budget has laid emphasis on the development of skills and technologies in analytics, IoT, AI, and robotics, fostering innovation and competitiveness. The proposal to set up data center parks in collaboration with the private sector can potentially enhance the digital infrastructure of the country and address privacy/security related issues. The government has increased the outlay for digital India programmes, which is encouraging. We were expecting the sunset clause of the IT act of SEZs to be extended that would have further boosted the IT software exports. However, the provision has not been changed. It would also have been great to have streamlined SEZ processes and labour laws in the IT sector. Removal of the dividend distribution tax is a great move towards a globally accepted regime of shareholder taxability for dividends.”

Mr. Vartul Jain, SVP and Chief Financial Officer, GreyOrange commented: 

"It is heartening to see how this year’s Union Budget focuses on promoting India as an investment and innovation hub. Focus on entrepreneurship, skill development and supply chain economy as well as thrust on technology are important for the growth of the Government’s Digital India and Make in India programs."

"Measures such as an Investment Clearance Cell, early-stage fund and multiple tax rebates and relaxations for startups–will help widen their scope and provide more opportunities. From a business perspective, the Government continues to extend its support to MSMEs and bolster their growth by allowing for debt restricting, all of which will help boost the entrepreneur ecosystem."

"We also laud the Government’s focus on improving the supply chain economy. Measures such as geo-tag warehouses and the establishment of efficient facilities at the block level will be key for ensuring zero wastage and optimizing resource allocation. We are now excited to witness how the industry makes the most of these initiatives for entrepreneurship and drive innovation to further the spirit of India Vision 2025."