In order to answer the perennial question of ‘what’s in it for me?’, leading executives across brands and agencies tell us how the 2022 Union Budget will impact the industry and consumers. Here are some key takeaways from a marketer’s vantage:
As marketers, we should look at any budget with two perspectives - how is it driving purchasing power and what it does in terms of consumer actions and accessibility.
There is a clear push towards digitization of the economy. This forward looking bias will lay the foundation of the next wave of growth in Digital India.
Capex target has been expanded by 35.4% - from Rs 5.54 lakh crore to Rs 7.5 lakh crore. This infra focused approach to stoke long-term value creation is the best kind of growth and investment.
India is an incredibly young, digitally permeated and innovation-friendly economy with billions of consumers who will benefit from economic progress. When the infrastructure and fundamentals improve, so does everything else and Digital India will come out on top. (Views expressed are personal.)
Harshil Karia, co-founder, Schbang
There's a lot to be optimistic about. With growth projected at 8-8.5%, one can expect higher marketing investments by companies to fuel that growth. Further the energy transition and climate action focus can ensure we see a greener and more eco-forward list of advertisers. If 2020 was the year of gaming and edtech, expect a mainstream solar player to be doing mass marketing in 2023/24.
With the growing focus on increasing agricultural productivity and integration of drone technology into operations such as crop assessment, I see more agricultural companies approaching B2B marketing specialists to increase demand as they grow supply.
The animation and gaming task force being set up is a huge opportunity for the creative and tech services industry to expand itself. We have experience and expertise in governing and growing creative talent and this presents a unique opportunity for the industry as a whole.
The roll out of 5G will ensure better digital experiences and further investment by companies on digital advertising as more eyeballs move to the connected screen.
The Digital Rupee is perhaps the most eye-catching initiative with the increased focus on blockchain but one will have to wait and watch how investment flows into the same and the global interest in the same. One thing is for sure though - on the global stage, it positions India as highly digitally forward. A theme we're hearing more and more of now.
Overall an exciting budget for the creative and technology services of industry. Our work is cut out.
Dheeraj Sinha, CEO and chief strategy officer – South Asia, Leo Burnett
The budget has definitely recognised the startup ecosystem and venture capital as a key driver of the economy. The capping of long term gains tax is an indicator of this. The boost to the startup ecosystem will definitely help the cause of advertising and media business.
With the taxation of income from the sale of digital assets, there is a legitimisation of crypto as also a blow on the earning potential. But we look forward to this category growing in a big way in the near future.
From a consumption expenditure point of view, the budget has carried no incentives to put more money in the hands of the consumers. So there’s not much to write home about there.
Navin Khemka, CEO - South Asia, MediaCom
I think a host of digital-first initiatives announced will fuel the startup economy even more. Great opportunities will emerge as we reach out to the remotest village digitally. This could see the next round of innovations across data and tech deployment for the masses. Advertising market will see growth for the first time since 2019. It will be fuelled by new age and technology brands.
Nischal Shetty, CEO, WazirX
India is finally on the path to legitimizing the crypto sector in India. It's phenomenal news that India is launching a blockchain powered Digital Rupee. This move will pave the way for crypto adoption and put India in the front seat of innovation.
It's also interesting to note how our government is beginning to recognise crypto as an emerging asset class, given how our FM was referring to it as a virtual digital asset.
The biggest development, however, was a clarity on crypto taxation. This will add the much needed recognition to the crypto ecosystem of India. We also hope this development removes any ambiguity for banks, and they can provide financial services to the crypto industry.
The tax clarity is a welcome move. Overall, it’s a huge relief to see that our government is adopting the progressive stance of going ahead in the direction of innovation. By bringing in taxation, the government legitimizes the industry to a large extent. The majority of people, especially corporates, who have been sitting on the sidelines because of uncertainties will now be able to participate in crypto. Overall, it’s a positive move for the industry.
Also read: Budget 2022 LIVE Updates: Budget not populist, extremely bullish on India, says Rakesh Jhunjhunwala
Anurag Bansal, COO & CFO, DDB Mudra Group
This Union Budget looks neutral, with no major changes in taxation. The launch of Digital Rupee based on blockchain technology is a big move to bring in official cryptocurrency in India. New e-passports with embedded chips would definitely ease overseas travel. Managing fiscal deficit while pushing for growth and investments is a great balancing act taken on by the government. It will give a boost to capital investments and infrastructure development.
Virat Tandon, Group CEO, MullenLowe Lintas Group
Overall, it's a future-facing and developmental budget to put India on the path to inclusive and sustainable growth.
An increase of 35% in capital expenditure will create jobs and much-needed infrastructure for development. The Pradhan Mantri Gati Shakti Program is a timely attempt to streamline the infrastructure and logistics that will create a strong spine for the fast development of the economy in middle India.
Furthermore, focus is clearly on technology and digital revolution in making middle India grow sustainably. Whether it is by introducing drones for agriculture or open platforms for the national digital ecosystem. Some important policy decisions on defining India's position on EVs, digital currency, 5G rollout and a big step forward in ease of doing business.
I think this budget will further spur entrepreneurial activity, not just in the metros, but in Bharat.
Chetan Asher , Founder and CEO, Tonic Worldwide
The budget clearly will help the country march towards digital adoption and transformation in many sectors. With 5G rollout on the cards, we will see an acceleration across the board. The digital rupee will put India right up on the map of advanced digital economies. Clarity on digital assets and crypto will give it new impetus. All of these initiatives will help us emerge as leaders in adoption and growth of blockchain technology.
Shekhar Banerjee, chief client officer & head - West, Wavemaker India
Good budget is not supposed to make everyone happy, but good to see all growth drivers of the industry will get a strong tailwind because of today’s announcement. Three big impact areas will be:
1. Lower surcharge for start-ups means more money for investment and customer acquisition.
2. Expect revival of crypto exchanges and their media spends with the government specifying clear rules of taxation from crypto gains - this will boost consumer confidence.
3. 5G rollout is likely to have the biggest impact, expect it to completely change the way content is distributed in India including TV distribution, bringing in higher accountability and subscription based revenue.
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