Here's how the corporate players reacted to the announcements made by the finance minister.
Nischal Shetty, CEO, WazirX: "Clarity on income tax is a huge positive step for the crypto industry. This also removes any fear people had about the impending ban. We now know that the government is definitely inching towards regulations in this sector."
Uday Kotak, MD, Kotak Mahindra Bank: "Budget: trust based governance to build atmanirbhar bharat. Reposes faith in taxpayers, entrepreneurs, investors. Build an open, digital and inclusive India with a 25 year vision. I am proud to be Indian."
Nikhil Kamath, Co-founder, True Beacon and Zerodha: "Sometimes boring is good- From a market, investor/trader standpoint nothing has changed so this will largely play out as a non-event for the stock markets. It is a positive step to see that this budget will take steps to regulate virtual currency. While how this will be implemented will determine if establishing a CBDC will result in less expensive currency management and a boost to the economy as a whole. International cues have been positive over the last 2 days, and we seem to be following them for now."
Rakesh Jhunjhunwala, Partner, Rare Enterprises: "I can bet on that net tax revenue in current year is Rs 3-4 lakh crore higher than budget expectations for the rest of financial year 2021-22. Hence, fiscal deficit will be 1-1.5 percent lower than budget estimates. This clearly indicates that next year collection will be higher than Rs 4 lakh crore, so this is ultra conservative estimates of tax collections."
Chandan Garg, Chairman & MD, Innovana Group: "The extension of ECLGS scheme is a welcome move for MSMEs. The credit and fiscal support of 5 lakh crore will give a huge boost to this sector encouraging new businesses to come to the fore. This announcement will certainly generate more than 10 lakh of employment opportunities in a short span of time. However, a slight focus on easing the trade and the taxation policies for MSMEs facilitating more freedom to do business was also expected from this year’s budget announcement."
Siddharth Maurya, Resource Specialist, Fund Management: "The Budget session has taken some prudent initiatives for MSMEs and India Inc for start-ups. The tax concession period has been extended by one more year, which in my opinion is a very positive move. Likewise, a 15% tax has been decided for the newly incorporated manufacturing unit. The period of incorporation has been increased by one more year to 31-3-2024. This will further boost manufacturing activities."
Gurjodhpal Singh, CEO, Tide (IN): "The financial support for the digital payments ecosystem is a welcome move and further reaffirms the Government of India's digital banking push. This push on digitisation will make way for more inclusion in the ecosystem. The focus on 'Ease of doing business' is a great step, as it will further promote entrepreneurship in the economy."
Virendra Ranawat, Co-Founder, WoodenStreet: "With Union Budget 2022-23, a lot of expectations have been met. Healthcare and infrastructure were the main highlights of the budget 2022 and immense investment has been allocated for the expansion of roadways and logistics networks. Just like it was expected, the youth and startups were given keen importance in the budget as well. The ECLGS credit scheme guarantee cover has been expanded by Rs 50,000 crore, which will provide collateral-free loans to stressed-out MSMEs."
Sameer Aggarwal, CEO and Founder, RevFin: “Introduction of ‘Digital Rupee’ using blockchain technology sends a strong message that India is at the forefront of technology adoption. A digital currency will bring in transparency to transactions and will enable accounting of all money, thereby reducing use of black money and cash based transactions. Issuance of the currency by RBI will result in a structured approach with controlled regulation. It is unclear at this stage if private digital currencies will be allowed to operate and compete with the rupee in India."
Richard Pattle, CEO, True Beacon Global: "As a foreign entrepreneur working in India and co-founder of one of the first funds in GIFT City - True Beacon Global - I am delighted with the focus of Narendra Modi's government to develop the SEZ. This will further develop the ecosystem into a world-class fintech hub. Along with my co-founder, Nikhil Kamath, we are confident this announcement by the FM will further accelerate the international investor trust and attract further capital one of the fastest growing economies in the world."
Satish Gidugu, CEO, Medi Assist Healthcare Services: "Open platform for the National Digital Health Ecosystem is a welcome move to accelerate digital health push. The insurance industry, as the largest single consumer of the healthcare services, has the best understanding of access to healthcare and financing of costs."
Ambarish Parekh, Senior Leader, Paycraft: “Considering the challenges faced by the Indian economy in this pandemic, the Ministry of Finance has put up a fine balancing act. The Union Budget 2022 has various encouraging initiatives that will propel aspiring entrepreneurs and boost small businesses."
D.R.E Reddy, CEO, CRCL LLP: "The idea of the Kisan drone for crop assessment, digitization of land records, spraying of insecticides and nutrients will give inclusive development to farming. With this phase, India is to grow at 9.27%, the highest among all large economies. With a focus on contributing to the environment, chemical-free natural farming focusing on soil, biodiversity and human well-being is a welcome move. Overall major decisions taken are favouring in striking a balance between boosting rural demand and investing in infrastructure while continuing on the path of fiscal consolidation to maintain macro stability."
Harish Prasad, Head Of Banking, India, FIS: "The formal announcement of the Finance Minister on launch of India’s CBDC, the Digital Rupee, during 2022-23 is a much awaited and positive move. This will trigger a wave of preparatory activity amongst retail payments providers and apps to offer payment mechanisms using the Digital Rupee, along the lines as been seen in China with major Digital payments players and apps offering Digital Yuan payments via their apps."
Umesh Mohanan, CEO, Indel Money: "By extending the Emergency Credit Line Guarantee Scheme (ECLGS) for MSMEs by one more year, the Finance Minister has addressed the wider issue of credit flows to small businesses, which is critical for a faster pace in economic recovery and job creation. This along with the proposed introduction of digital currency by the RBI sooner than later will not only see the credit needs of MSMEs addressed on tap and on time going forward but also keep the asset quality of lenders to the sector intact despite the Omicron wave adding to the risks. This is a big positive for the business growth of MSME focused lenders like us."
Abheek Barua, Chief Economist, HDFC Bank: "The 2022-23 budget finely balanced fiscal retreat with supporting economic recovery. The budget focussed on a familiar strategy of driving capital expenditure to drive growth, with the intention of crowding in private investment through higher public spending. Although markets could be disappointed with a higher fiscal deficit of 6.4% of GDP for FY23 than expected, it is perhaps prudent to not undertake aggressive fiscal consolidation at this nascent stage of recovery. While elevated market borrowings are likely to pressurise bond yields, inclusion of green bonds in the borrowing plan are an interesting innovation."
Alok Loyalka, CFO India and Director Tax, Fidelity International: “The budget is growth-oriented with an impetus on capital expenditure to fuel economic growth and employment generation. Steps such as reducing surcharge on unlisted shared from 28.5% to 23% are likely to ease investor exits from start-ups. SEZ Act to be replaced with the new legislation is a much-needed announcement. This will help address new ways of working from home, introduce agility in SEZ activity and reduce the compliance burden.”Atul Goel, MD, Goel Ganga Developments: "In the backdrop of dropping Coronavirus cases, Ms Nirmala Sitharaman presented an enabling, positive and futuristic Union Budget 2022-23. The real estate sector has faced severe headwinds in the recent past but is hopeful of a solid recovery with several key budget announcements. With a focus on the construction of over 80 lakh affordable houses by the year 2023, focus on urban development via the concept of mega cities and enhanced focus on Tier 2 and Tier 3 cites will provide the much-needed impetus to the real estate sector."