Union Budget 2017: How Tech Companies Rated Arun Jaitley's Budget

New Delhi: India's Silicon Valley welcomed Finance Minister Arun Jaitley's budget speech today, praising the government's focus on boosting digital connectivity and concessions for small businesses and middle class taxpayers. In his first annual budget since the ban on high-value banknotes last year that sucked out majority of the cash in circulation, Mr Jaitley announced steps to boost spending as well as allocate crores of rupees to improve infrastructure, connectivity and encourage digitisation of the world's fastest growing major economy. Technology companies also celebrated easing regulations for foreign investment and sops for start-ups.

Here are some of the reactions to the 2017 Union Budget from some top tech firms:

Amazon

"It is encouraging to note that the Finance Minister and the Government of India continue to believe that the digital economy will be a key enabler for modernizing India, which in turn will benefit the e-commerce sector as a whole. The Finance Minister's callout on further liberalisation of FDI will help in attracting additional investments and create job opportunities. In addition, reduction in the Corporate Tax for MSMEs and increase in the Pradhan Mantri Mudra Yojana outlay are positive moves that can encourage SMEs to evaluate new entrepreneurial opportunities including those in the e-commerce space.

Vijay Shekhar Sharma, Founder & CEO - Paytm

It is a digital economy budget. Government has pushed the digital theme in every area of the budget. Every person from a small shops to consumers are pushed towards the digital economy. Tax benefits, incentives to use digital payments and extending loans based on a digital footprint will create a larger merchant ecosystem for digital payments. Incentives for labour intensive sectors including housing, farming and dairy will help SMEs to create new jobs. Focus and attention to bank NPAs, as well as increasing bank capitalisation is great step towards strengthening the financial system of the country. Finally, the income tax rate changes will encourage more people to report their incomes and create a larger tax net for the country. Overall, it is a great budget that will encourage people to move to the formal economy and derive benefits.

Kunal Bahl, Co-Founder & CEO Snapdeal

We commend the focus on growing the digital footprint in the country -  enhancing digital infrastructure, capping cash transactions, reducing cash donations, using Aadhaar Pay to enable more digital payments are significant measures. Initiatives make an impact when there is continued attention and the announcement of today builds on the demonetization efforts of last few weeks.
We also welcome the emphasis on skill development and technical education - this will enable India to successfully harness the demographic dividend. The attention to affordable housing, greater employment in rural areas are the right interventions to build a more equitable society.

Sanjay Sethi, CEO & Co-founder, ShopClues

Budget was overall a populist budget; a move in the right direction but short of expectations. Push for Digital transformation & financial inclusion is applauded but the government has deployed lot more sticks rather than carrots too to push the "less-cash" agenda. I would have expected zero TDR for small value digital transitions. Investments in infrastructure, focus on Bharat & employment guarantee & women empowerment, political trans is welcome. Corporate tax break for SMES is very nice, and much awaited, it is important that Government recognizes SMES to be the engine of India's GDP growth. Incentive for Startup fell short of expectations. There is not much clarity around FDI, FIPB so let's see how it pans out in coming days.

Neelesh Talathi, CFO, Pepperfry.com

The Union Budget 2018 has set the right priorities as India takes head-on the challenging global economic environment. The emphasis is rightly on growth with a slew of initiatives including higher allocation to infrastructure, increased emphasis on affordable housing and more disposal income in the hands of middle class Indians.

The Budget continues to focus on transforming India as a digital leader by allowing for easier flow of capital to create jobs and fostering innovation in our country, connecting Bharat and encouraging indigenous manufacture of POS terminals. These steps towards creating a digital economy will help grow our ecommerce ecosystem.

The Indian furniture industry employs around 5mn people and over 85% operate in the unorganised sector. We are heartened with the Government's investment in skill upgradation and tax relief for the MSME sector. The Pepperfry marketplace continues to be committed to a strong partnership with small business owners and craftsmen; together we shall help 20 million Indians create beautiful homes by 2020.

Abhiraj Bhal, Co-Founder, Urban Clap

The new policy proposed in the budget, allowing startups a 3 year tax holiday in the first 7 years of their existence is a welcome change. However, this policy could have been more impactful had it included startups incorporated prior to 31 Mar'16, and extended the period when the tax holiday can be availed from 7 to 10 years. Equally importantly, while the present Ministry and Department are very committed to their work, to avoid future misuse of this policy, clear guidelines and definition of a startup should be laid out, and any subjectivity in the granting of these tax holidays avoided.

Rituparna Chakraborty, Co-Founder, Teamlease

The 10 thrust areas poses a smart packaging of populism and pragmatism. The government's focus on digitatisation, transparency in governance & politics, upliftment of women & youth, quality of education, rural India is evident in this budget. It's encouraging that the budget eludes to simplification of labour laws through the 4 labour codes as well reform in UGC - which has been long due. Shifting focus of secondary education to a system driven by learning outcomes is a bold and radical move. This budget firmly establishes the winds of change for India ushered in by demonetization and GST.

Manoj Gupta, Co- Founder, Craftsvilla

There is nothing big bang in this Union Budget. There is very little for startups and ecommerce. Abolition of FIPB would hopefully make FDI easier. Was looking forward for the Government to take more proactive actions on areas like handloom and tourism that has huge potential for India. Would have also loved it if they announced developing handloom parks or heritage parks across the country with better facilities.