Union Budget 2022-23 reactions highlights

"Budget 2022 brings a sense of optimism and reflects the government’s continued focus on ‘Make in India’, decreasing the dependency on imports. Duty concessions to promote electronic manufacturing will help the industry sustain itself while recovering from the challenges of the pandemic. Hon’ble Finance Minister’s commitment to establishing a strong 5G ecosystem will lead to product innovations across multiple categories including IoT-enabled appliances. We also welcome the push towards housing infrastructure as this is likely to create positive demand for consumer goods and home appliances, enabling businesses to grow,” saidRakesh Kaul, CEO and Whole-Time Director, Somany Home Innovation Limited.

At a macro level, it is a very bold Budget. The expenditure of Rs. 39.45 lakh crore, particularly capital expenditure of Rs.7.05 lakh crore, will propel the economy towards a high growth rate, which is the need of the nation. The containment of the fiscal deficit of the Budget of last year to 6.9% is a remarkable feat in light of the Covid pandemic and also revenue buoyancy.

Chairman, of ICEA, Pankaj Mohindroo, stated: “The Hon’ble Prime Minister’s bold and robust extension of the PLI Schemes, which were pioneered by ICEA, including the latest one declared for high-efficiency PV module (solar) with a budget of Rs.19,500 crores, is remarkable. We also welcome the PLI scheme for design-led manufacturing for building a strong ecosystem for 5G. The PMP for hearables and wearables is a great step.

Further, the extension of the Section 115BAB provision of 15% for newly incorporated manufacturing companies is another excellent step to promote the much-needed manufacturing sector.

The aspiration to build a capital goods industry is again an excellent step. We will have to be very careful not to impose import duty on capital goods that do not need any protection and are not being manufactured in India.

While ICEA welcomes the reduction in duty on parts of transformers of chargers, as well as a lens as part of the camera module, a long road remains, especially for the continued high basic customs duty for high-end mobile phones (i.e. phones with a CIF value higher than Rs. 20,000). We emphasize that rationalisation of the BCD is essential to curb the grey market, increase revenue generation, and give a fillip to the industry.

"Government contributions towards R&D in sunrise opportunities such as AI, semiconductors and its ecosystem as well as the calibration of custom duty rates and concessions towards the domestic manufacturing of high growth electronic items as well as on parts of phone chargers, transformers, wearables will provide the necessary boost required for the up-gradation of the sector.

Continuing from the previous year’s success, the startup ecosystem has indeed emerged as the growth driver for the country. The rationalization of a surcharge being capped at 15% for individual companies and AOPs on long-term capital gains along with the period of incorporation being extended till March 2023 for startup tax benefits will support the amplification of the startup ecosystem in India. Additionally, the establishment of an expert committee towards the scaling up of last year’s INR 5.5 lakh crore investments via Venture Capital and Private Equity for the startup ecosystem will prove to be an invaluable asset for the companies entering the space.

A continued focus on the caliber of affordable 5G network as part of the PLI Scheme in rural as well as urban areas alongside the allocation of 5% annual collection under USOs is sure to link together the growth in the telecom and consumer electronic sectors,” said Mandeep Manocha, Co-founder & CEO, Cashify

"The COVID-induced gap in learning needs to be addressed on priority and EdTech platforms should continue to ensure that students receive uninterrupted learning in such challenging times. By providing students easy access to quality learning, this year’s budget lays a clear emphasis to reduce the gap between students in remote areas and education. Initiatives such as the 'One Class One TV Channel' and the E-Vidya scheme is welcome to move that will drive impact at scale and bridge the language divide amongst students from small-town India. We believe that this budget rightly aligns with our vision of democratizing education by providing students access to high-quality learning, improving learning outcomes, and thereby contributing to a vibrant knowledge economy," said Vamsi Krishna, CEO & Co-Founder at Vedantu.

“As announced by the Hon’ble Finance Minister in the Union Budget, the focus on using drones to drive sustainable development through Drone Shakti and Kisan Drones initiatives is a welcome move by the Indian government. This will kickstart the fourth industrial revolution by leveraging drone technology for digitization in agriculture, infrastructure and rural development and generate new-age employment opportunities for the youth of the country,” said Neel Mehta, Co-Founder & Director, Asteria Aerospace

He further adds, “Asteria Aerospace is proud to support the government's mission by manufacturing best-in-class indigenous drones and providing end-to-end drone solutions for national security, infrastructure inspections, agriculture, and land surveys."

“India delivered a pro-growth budget with a significant push to capital expenditure to boost the supply side and attract private investment. The government appears to have had its ears to the ground and covered a vast gamut of sectors in its four priority areas -- PM Gati Shakti, Inclusive Development, Climate Action, and Energy Transition. Intentions have been clear – steer India toward sustainable development with a strong focus on financial support to MSMEs and expansion of emerging sectors such as solar power, EV infrastructure, railways, data centers.

Additional allocation of Rs 19,500 Cr for PLI scheme, development of new-gen trains over the next three years, Rs 1,400 Cr allocation for hydro and solar projects in FY23, rationalization of custom duties on select capital goods, wider coverage of single-window clearance for green projects will pave the way toward clean energy transition.

Clear emphasis on technology and digitalization with due consideration to upskilling the youth and R&D to build back better is a big positive. While some important elements such as a new SEZ legislation, funding schemes for new metro rail systems and cleantech, urban planning to promote sustainable living, battery swapping policy appear to work in progress. the government has laid the blueprint for growth over the coming two-three decades.

Unambiguous intent on achieving its COP26 ambitions through key proposals such as urban planning, energy efficiency, increased budget for PLI, distributed grids for remote villages, and finance to enable these through new climate finance services and categorizing grid-scale BESS as harmonized infra. Focus on standardized and efficient mass transport metro & rail will help normalize costs. The battery swapping and interoperability proposals for EVs are a way of triggering adoption, which will then create enough demand for technology evolution. MSME ratings will help calibrate the Indian supply chain to world-class.

The climate-responsive budget also keeps consumers at the center - DISCOM options, skilling & employability, focus on R&D,” saidN Venu, MD & CEO, India & South Asia, Hitachi Energy

"Today can be considered as a historic day for the Indian Digital journey. The much-awaited welcome by the Indian government to the use of Digital Currency and Crypto transactions will soon lead India to be one of the top economies of the world. Investing in and utilizing advanced technologies like blockchain is what helps the nation grow at par with the other countries globally. With $GARI Social Tokens listing on 19 global exchanges and Chingari transforming the Web3 universe for its creators, we are proud to be a part of the digital and crypto revolution.

Currently, the information and awareness about Crypto/ Digital Currency is very limited in India, which is also a major challenge that needs to be resolved. Chingari powered by $GARI will be stepping up and taking an initiative towards spreading more awareness amongst the internet users in India, " said Sumit Ghosh, Co-founder & CEO, Chingari App

"Capitalizing on the momentum that the fintech industry has picked up in the last few years, this year’s budget focuses on inclusive development and financing of investments as two of the seven pillars.

Union Budget 2022-23 ispresented as a blueprint for the next 25 years of 'amrit kaal', as India enters its 75th year of independence.

Read more here

“The Finance Minister has presented a growth-oriented and pro-development Budget for 2022-23 by focusing on sustainable planning & development, energy transition for a cleaner tomorrow and inclusive growth through a tech-enabled economy. Also, investment led growth strategy and the sizeable capital investment for sustained and speedy economic revival are reflected in the sharp increase in capital expenditure for FY23. The special focus on education, digital and clean mobility is laudable.

The Battery Swapping policy and special EV mobility zones will help in the smooth transition to electric vehicles. The budget has laid the roadmap for long-term development over the next 25 years and areas like artificial intelligence, drones, semiconductors, space economy, genomics, green energy, and clean mobility systems will collectively lead the future growth of the economy. This budget echoes our sentiment and commitment to indigenous mobility solutions for a cleaner tomorrow,” said Dheeraj Hinduja, Executive Chairman, Ashok Leyland Limited

“The budget announcement by the Finance Minister is extremely progressive and the government has continued its focus on steps to help the economy bounce back from the impact of pandemic. The increase in the capital expenditure by 35% is a welcome announcement and it willhelp in pushing growth and jobs creation.

In my view, the Government’s focus on digitization of education and skilling infrastructure can be a gamechanger for learning and training continuity for youth from all segments of the society. The setting up of a digital university in regional languages will help bridge the digital divide in rural parts of the country especially enabling the vision of “quality education for all” for the students coming from economically weak backgrounds. The announcement to build a digital ecosystem for skilling and livelihood e-portal along with new skill development courses will provide new job opportunities to the remotest parts of the country. Empowering teachers with digital tools to create quality e-content will prepare them with the online teaching needs required in the new normal for a hybrid learning model.

Further, in line with the government’s mission to establish financial inclusion in the country, digitisation of post offices by bringing it under the core of banking will play an integral role towards digital economy and ease fund transfers especially for the farmers and senior citizens in the rural area.

The decision to set up a task force for the animation and gaming segment can be the catalyst for further boost of this sector in India as this sector has the potential to create lakhs of job opportunities in next few years,“ said Ketan Patel, Managing Director, HP India.

"The extension of 1 year for startups is a welcome move as it will, directly and indirectly, help to strengthen the ecosystem. The push to the manufacturing industry is a strategic move to reduce the dependence on imports and upgrade the capabilities of Indian manufacturers to meet the needs internally. It was nice to hear that the growth in the wearable market has been recognized by the government and custom duty calibration should bring more opportunities for domestic brands to provide unique options to the masses. Similarly, an extension of concessional tax regime by 1 year is a welcome move during the pandemic which is not showing any sign of deterrence," said Archit Agarwal, Co-founder, Crossbeats.

"Skilled youth is currently a major issue across all industries and particularly the fast-changing IT technologies that demand lots of upskilling and reskilling. Digital DESH e-portal is aiming to address this very issue, something which upskilling companies like Millionlights and others have also been trying. That's why we are keenly looking forward to the execution of this initiative. Also, the announcement of the setting up of Digital University to provide access to students for world-class quality education with ISTE Standards has the potential of improving the lives of students across the length and breadth of our country.

"Union Budget 2022 continues to pave the way for a sustainable economic growth in Amrit Kaal, backed by consistent structured approach. It underscores the Govt commitment towards Digital India and investment in Public Private Partnership through game changing initiatives like Gati Shakti programme, investment in the sunrise sectors and MSMEs, introducing policies for clean energy, among others. Infact, the seven engines defined under Gati Shakti initiative is bound to have a multiplier effect as it will help aid in reduction of logistics costs, enable supply-chain efficiencies, create employment generation all this, while using technology.

It was encouraging to see the focus on clean energy. In line with Panasonic’s business strategy, we are looking forward to details on the Battery Swapping Policy and participate in India’s Electric Vehicle (EV) story. Also, the commitment on building a circular economy is the need of the hour as the world looks at sustainable solutions in a phased manner.

In my experience with the current regime, policy conversations are not limited to Budget day but take place through the year. So we are hoping for discussions on how exports can be further incentivized and policy can be enhanced for design led local manufacturing. From an electronics sector standpoint, we expected reforms in the Union Budget FY 2022 - 23 that would accelerate growth channelized by consumer demand. For instance, rationalizing the GST from 28% to 18% on ACs and large screen size (>105cm) TVs will improve affordability and penetration as these are no longer considered luxury items. We will look forward to hearing from the GST Committee on this.

From the individual’s perspective, no changes in tax structure can also be a relief as it defines stability in current times. Though more money in the hands of the tax-payers could have helped drive consumption over short term," said Manish Sharma, CEO, Panasonic India.

“Today’s Union Budget presented by Finance Minister Smt. Nirmala Sitharaman is an inclusive and growth-oriented balanced budget with a clear focus on strengthening physical and digital infrastructure, boosting the ‘Make in India’ start-up ecosystem, and providing a strong digital push. The various initiatives will significantly contribute to the Indian dream of creating a 5 trillion dollar economy.

The creation of the technology and innovation-based Unified Logistics Interface platform, and the development of cargo terminals will further boost an efficient supply chain ecosystem in India and create millions of new livelihood opportunities,” said Kalyan Krishnamurthy, CEO, Flipkart Group.

"This year's Union Budget stays true to India's dream of making an Aatma Nirbhar Bharat. With the global chip shortage in play, India stands to benefit by putting together its local engineering and technology expertise and boost the manufacturing sector as well. We're thrilled to be a part of this exciting economy and hope for the best for consumers. India's digital and creator economy is well on its way to thrive and showcase the best of Indian talents on a global stage,” said Arun Babu, General Manager, EID, Optical Devices & Instax Division, Fujifilm India.

"We strongly welcome the government's acceptance of NFTs (Non-Fungible Token) and virtual digital assets as taxable goods. We all know, like computing, the internet and mobile phones created major digital revolutions in 1980s, 1990s and 2000s, blockchain applications will revolutionise the world again in 2020s. This time India will not be an observer, but a leader of this new world. Government's acceptance of blockchain technologies, Digital Rupee, NFTs and the likes in its taxation framework gives us the confidence to aggressively build and take India to its rightful leadership position in the digital world"

We have always maintained, NFTs are digital goods, and goods have always been appropriately regulated. Being digital regulations require some clarification and additions, but fundamentally NFTs are not un-regulated. The mention of NFTs in the budget and taxation associated with this, e.g. 1% TDS is similar to what we see on marketplaces like amazon. This further ratifies our position.

Cricket world, in particular in India, has already embraced NFTs. The likes of Virender Sehwag, Rishabh Pant, Smriti Mandhana, Rashid Khan, Dinesh Kartik, Prithvi Shaw, Ishant Sharma, Mohammad Siraj and many others have joined Rario, a cricket NFT platform. Appropriate taxation of NFTs, as announced in the budget today, gives both cricketers and fans comfort that owning an NFT is well within the ambit of the law," said Ankit Wadhwa, Co-founder & CEO, Rario.

"Hyundai Motor India welcomes the progressive Union Budget announced today. The government’s strong approach towards accelerating infrastructure development, sustainability along with digitalisation in every sphere of business will give a strong impetus to the overall economy while empowering consumerism in India. The vision for clean mobility creating electric vehicle ecosystem is a positive indicator for the auto Industry and for its large supply chain. The forward-looking budget will lay the modular economic structure for every section of business and society in India," said Unsoo Kim, MD, Hyundai Motors India Ltd.

"We congratulate Union Finance Minister Smt Nirmala Sitharaman for giving India a growth-oriented and progressive UnionBudget. We welcome several key initiatives that have been announced for the telecom and IT sector in this year's Budget."

"We welcome the forthcoming 5G auctions. However, we request the government to offer a free or low cost spectrum to be given to all users and operators initially, and when the market matures in 2-3 years the government can go for auction. This will get better prices and encourage healthy competition in the telecom sector. We also welcome the government's focus on the PLI scheme and Rs.7.5 lakh crores of CAPEX which will give a big boost to the telecom industry . Similarly, duty reduction in the telecom sector will be conducive to growth."

"For the industry, the biggest game-changer has been the reduction of performance bank guarantee (PBG) to 3% and now insurance-based surety bonds will free additional Rs.1.5 lakh crores of industries as working capital funds. We also thank the government for agreeing to pay dues within 10 days 75% of the running bills."

"The government's focus on increasing broadband penetration is commendable. Integration of the Department of Post with core banking through digital optical fiber connections will help bring high-quality banking to the villages, while the PPP mode on BharatNet will bring fiber to every village. We hope that the government will encourage and ensure the use of domestically-produced telecom and IT goods, with a focus on MSME products, in all the mega telecom and IT infrastructure projects," said Sandeep Aggarwal, Chairman, Telecom Equipment Promotion Council (TEPC).

"It is extremely gratifying to learn that the government has announced that 400 Vande Bharat trains would be rolled out in the next three years. As the creator of the train, it is a moment of great pride for me and the team that built the first rakes 2018-19. It is also a vindication for me and the team as the project had been dragged into an unnecessary controversy since early 2019 and things improved after the new rail minister took over."

"As regards the practicality of turning out 400 trains in 3 years, yes, it is an extremely ambitious target. If it happens, I would be the happiest. At the same time, I would think that a more realistic target of say 150 trains in 3 years would have been better. This target itself would need very concerted and committed action by railway executives, particularly at ICF. I also hope that the rakes to build in future are an improvement over the first two and care should be taken that there is no deterioration in quality. "

"I also hope that ICF would soon start working on the project of Sleeper version of Train 18. christened as Train 19 when we started work on it but later discontinued by IR, and on and Aluminium-bodied energy-efficient Train 20, the project lying in limbo for three years. Overall, a happy moment for me and the team," said Sudhanshu Mani, Retired General Manager, Integral Coach Factory (Creator of Train 18/Vande Bharat Express.

FM NirmalaSitharaman announced a host of changes in the customs duty that would affect the prices of essential commodities. Apart from that, import duty on chemicals has been reduced, customs duty on gold and polished diamonds, gems would be reduced to 5 per cent.

Read more here

“Union Budget 2022 sets the pace for the Indian Economy’s growth trajectory amidst the challenges brought forth by the pandemic. The big boost to capital expenditure is welcome and it would give a fillip to the Indian economy. For the automobile sector, we welcome the ‘PM Gati Shakti Master Plan’ focusing on building world-class infrastructure and improved connectivity for commuters."

"The strong push towards augmenting agricultural productivity should help enable buoyant rural demand. In the electric mobility space, we strongly support the measures undertaken by Government to promote clean and green mobility, mainly introducing the battery-swapping policy will be instrumental in supporting an efficient EV ecosystem."

"There is an impactful thrust towards renewable energy incentives with an increased focus on reducing infrastructural waste for a greener tomorrow. We appreciate the Government’s vision of building the skilling ecosystem for youth in India, which will play a critical role in driving innovation in the industry,” said Venu Srinivasan, Chairman TVS Motor

The crypto ecosystem has welcomed Finance Minister Nirmala Sitharaman's proposal for a 30 per cent tax on digital assets for legitimising bets on the assets considered as very risky by the RBI, even as a law on regulating such activity is awaited.

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“The Budget, presented by Finance Minister Nirmala Sitharaman, is progressive and growth-oriented. I see it in three words - innovation, inclusivity and infrastructure. It will help in India’s progress towards its aspiration of a $ 5 trillion economy. The focus on start-ups, which have emerged as drivers of growth for our economy, was evident. The extension of incorporation period for eligible start-ups will certainly give a boost to this segment. Hospitality services by the small & medium sector are yet to bounce back, and the Finance Minister’s decision to extend the ECGL service for this sector up to March 2023 expanding the cover by ₹50,000 cr is a welcome move."

"The budget also puts a huge focus on infrastructure and logistics which is a welcome development and ensures that the economy continues to witness not only revival but also show robust growth in the long run. Steps such as e-passport issuance will strengthen overseas travel and expansion of highway network by 25000km and contracts of 8 ropeways under PM Gati Shakti to develop seven engines will also benefit domestic travel."

"Relief to the small businesses and startups through the recent future (Amrit Kaal) is reassuring and these, coupled with steps taken towards digitalization (Drone Shakti, Digital University, Digital Banking and Payments, EVs, Launch of 5G) and Web3.0 (Digital Rupee) will provide new opportunities for young emerging India. Focus on upskilling employees and allocating resources to invest in new technology is the need of the hour and we are happy to be partners in this initiative,” said Ritesh Agarwal, Founder & Group CEO, OYO.

"This is the Digital Revolution Budget. We welcome the government's emphasis on creating new digital touchpoints to empower multiple aspects of our society and supercharge the startup ecosystem. New initiatives across currency, banking, education, skilling, health, passports, and logistics will enable a large part of the country to benefit from India's growing digital revolution. The government's focus on augmenting India's road, rail, and telecom infrastructure will help further accelerate growth opportunities across Bharat." said Kunal Bahl, Co-founder & CEO, Snapdeal.

When the Finance Minister and officials of the Ministry of Finance sat down to write the Budget speech, what ought to have stared them in the face were the following facts:

> India’s economy has not recovered yet to the level in the pre-pandemic year of2019-20;
> In the last two years, millions of jobs have been lost, some perhaps forever;
> Approximately, 60 lakh MSMEs were closed down;
> In the two pandemic years, 84 per cent of households have suffered a loss of income;
> Per capita income has declined from Rs 1,08,645 in 2019-20 to Rs 1,07,801 in
2021-22 (or even less);
> Per capita expenditure has declined from Rs 62,056 in 2019-20 to Rs 59,043 in
2021-22;
> An estimated 4.6 crore people have been pushed into extreme poverty;
> Huge learning loss among school children, especially children who live in rural India
and are enrolled in government schools;
> Malnutrition, stunting and wasting among children has increased and India’s rank inthe Global Hunger Index has fallen to 101 (out of 116 countries);
> The unemployment rates have reached 8.2 per cent for Urban and 5.8 per cent forRural workers;
> WPI Inflation is estimated at 12 per cent and CPI inflation at 5.3 per cent.

After the Budget was presented this morning, we asked ourselves what has the Budget done to address any of these grave challenges. The blunt answer is NOTHING.

Obdurate and Callous

The government behaves and acts as though it is on the right path and has delivered on the issues that matter to the common people. This is false. This is also bull-headed obduracy. This also reflects the government’s contemptuous disregard of the burdens and sufferings of the people.

I was astonished that the Finance Minister was outlining a plan for the next 25 years, which she called the Amrit Kaal ! The government seems to believe that the present does not need any attention and the people living in the present can be asked to wait patiently until the Amrit Kaal dawns. This is nothing but mocking the people of India, especially the poor and the deprived.

There was not a word in the speech about any cash assistance to the very poor who have been pushed into extreme poverty and suffered immensely during the last two years; not a word for those who had lost their jobs; not a word about creating jobs for those whose education stopped at some stage at the school level; not a word about reviving MSMEs that had shut down; not a word about distributing more food to combat malnutrition and hunger; not a word about cutting indirect taxes, especially GST, to contain inflation and bring down the prices of goods; and not a word about giving tax relief to the tax-paying middle class or the tax-bearing head of a household.

By any standard, today’s budget speech was the most capitalist speech ever read by a Finance Minister. The FM has mastered the jargon of capitalist economics. Read her speech again: count the number of times she used the words digital, portal, IT-based, paperless, database, ecosystem, global, atmanirbhar. The word ‘poor’ occurs twice in paragraph 6, and we thank the FM for remembering that there are poor people in this country.

Welfare thrown to the winds

There are worrying macro-economic indicators: top of the list is that the fiscal deficit (FD) for 2021-22 has overshot the target of 6.8 per cent and is estimated at 6.9 per cent. For next year, it will be 6.4 per cent. That is an insufficient correction if the goal is to reach 4 per cent three years hence by 2025-26. The financing of the FD is also a matter of concern. 70 per cent of the FD in 2022-23 will be financed by market borrowing as against 55 per cent in the current year, crowding out private sector borrowing.

The worry from the welfare angle is greater. Every key subsidy has been slashed:

The total subsidy bill has been cut by a humongous 27 per cent. This is the “most unkindest cut” in this budget. The FM may have forgotten the poor but the poor have long memories.

The next worry is about raising more resources. The FM is betting on heavy market borrowing and increases in Corporate tax (+85,000 cr), Personal Income tax (+85,000 cr) and GST (+1,05,000 cr).

There is not a word about raising more resources from the rich, especially the very, very rich 142 persons whose wealth in the last two years has increased from Rs 23,14,000 crore to Rs 53,16,000 crore.

You will ask me, no doubt, if there is not any aspect of the budget that I welcome. There is a short list of three:

1. The FM has promised capital expenditure of Rs 7,50,000 crore in 2022-23 as against the RE of Rs 6,02,711 crore in 2021-22.

2. The FM has promised an additional borrowing of Rs 1,00,000 crore to the States free of interest.

3. The budget speech was mercifully short at 1 hour and 30 minutes.

Parliament may vote this Budget because the ruling party has a brute majority in the Lok Sabha, but the people will reject this capitalist Budget.

Govt tom-tomming 35.4% increase in capital expenditure.
This includes repaying Air India loan not backed by assets of nearly ₹52Kcr.
Minus this and purchasing defence equipment ✈️ capital expenditure is lower than last year allocation.
'Lies, Damned Lies & Statistics'.

— Sitaram Yechury (@SitaramYechury) February 1, 2022

"The 2022 Union Budget is forward-looking and inclusive and lays down the roadmap for an aspirational India. Overall the government’s growth Capex announcement will prime the wheels for the entire economy and will have a multiplier impact. Investment-led growth which has been adopted by the government of India will result in higher quality growth versus a mere consumption led growth. We are happy about the government’s intent to continue supporting the new-age tech ecosystem by forward-looking initiatives such as the introduction of the digital rupee, extending the existing tax benefits of startups by one more year and reduction of overlapping compliances which will improve the ease of doing business in India."

"From our perspective, we have been keenly watching the developments that impact our sellers and their ecosystem and we see positive moves on those aspects. Emergency credit guarantee scheme (ECLGS) extension up to March 2023 will be helpful for the MSMEs to regain their business above the pre-pandemic levels. Further, the revamp of CGTMSE will also help the banks extend lending to the credit-starved MSMEs. Finally, duty concessions to promote electronics manufacturing, wearables, and hearables devices and mobile phones will boost Indian manufacturing and thereby reduce imports in these critical sectors," said Vidit Aatrey, founder and CEO, Meesho.

This is a progressive Budget; benefits all sections especially farmers, women, youth. Important announcements such as MSP, measures to double farmers income, 60 lakh jobs for youth,measures for women empowerment such as Mission Shakti will boost our economy: UP CM Yogi Adityanath pic.twitter.com/DkJVOcbtm6

— ANI UP/Uttarakhand (@ANINewsUP) February 1, 2022

I don’t think this budget is going to be up to the mark to face the current economic situations of the country. Without legislation via budget they're legalising that (crypto), this is not a right parliamentary practice: Congress leader & Rajya Sabha MP KC Venugopal pic.twitter.com/9kiHHlJ4mb

— ANI (@ANI) February 1, 2022

"We are happy to note that the FM has announced crypto tax provisions in this budget, legitimising crypto transactions in some way. However, it is disappointing to see that the Government has decided that the income from the transfer of digital assets will be taxed at 30 per cent -- which seems to be too high, given that the NFTs, cryptocurrencies and digital assets space is already booming and has immense potential for the economy in the near future. I am hopeful and certain that once the full potential of crypto is realised it will be lowered further, " said Om Malviya, President, Tezos India

"The Union Budget announced today showcased the government's initiative towards Digital Transformation. From announcing a Digital University, for online learning to high-quality e-content across languages will enable the youth to skill, upskill and reskill themselves. These programs under digital learning and the connectivity expansion will further strengthen the availability and accessibility of the internet in rural areas."

"With the government infrastructure spending push, we are likely to see more employment and growth opportunities and enhanced private sector investment in manufacturing. We are confident that the exemption of duty on parts of select electronic items will further boost the domestic manufacturing of electronics goods under the PLI scheme. Overall, the Union Budget 2022-23 is a promising budget and a step forward towards ‘Aatmanirbhar Bharat’," said Alok Dubey, CFO, Acer India

“Drawing inspiration from Atmanirbhar movement, Budget 2022 continues to provide the impetus for growth in the domestic market. The measures introduced by the Finance Minister in Budget 2022 will not only support domestic capacity creation but also ease the raw material supply constraints. The approval of the PLI scheme for white goods was a major milestone for the consumer durables sector in India and we are pleased to see that the Government has unleashed plans for PLIs and Phased Manufacturing for other sectors, that are bound to grow rapidly in the coming years.

At Voltas, we have been contributing towards nation building since our inception and we look forward to being a part of India’s growth story as it strives for development,” saidPradeep Bakshi, MD & CEO, Voltas Limited.

Corporate taxes get reduction. Normal salaried class get Mahabharat quotes. Brilliant strategy. #Budget2022

— Abhishek Singhvi (@DrAMSinghvi) February 1, 2022

"This is a growth-oriented Budget, I am sure that stepping up the capital expenditure sharply by 35.4% will have an incremental effect on the overall growth of the economy. It is good that the policy makers understand that nearly half of our population is likely to be living in urban areas by 2047, when India is at 100.

The announcement for urban capacity building like mass transit, planning help, etc. would act as a good principle for development of the country. The budget has demonstrated a good balance between today’s needs and the future’s demand," saidRajeev Sharma, Chief Strategy Officer, Mitsubishi Electric India Pvt. Ltd.

"It is encouraging to see that the government has taken a positive step towards regulating digital assets. This will change a lot of misconceptions around crypto assets and pave the way forward to classifying them as separate asset class.

Government-mandated one per cent TDS for every trade will enable it to track crypto transactions and provide much-needed visibility on the holders and users of crypto assets.


Government CBDC
The Digital Rupee (CBDC) will be a game-changer for the Indian economy. It will enable efficient and cheaper currency issues and circulation. This is not only a win for Digital India but also for the adoption of blockchain technology, opening up new doors for innovation, monetary efficiency, and a robust economy.

For the long term, India will have the necessary infrastructure in place to emerge as global financial technology leader in the coming decades," saidMelbin Thomas, co-founder, Sahicoin.

"Agriculture, healthcare, and digital banking have all received significant boosts in the Budget 2022-23. India has seen a surge in startups, particularly in the IT/knowledge-based sectors, over the last six years. The one-year extension of tax incentives for startups, as well as the launch of the e-stack portal, which encourages a digital ecosystem for skilling and finding relevant jobs and entrepreneurial opportunities, will encourage a stronger entrepreneurial culture in India and position India as the global hub for technological innovation. The FM stated that startups will be encouraged to facilitate drones by developing various applications and providing drones as a service.

The allocation of 25% of India's defence R&D budget to private industry, startups, and academia is a positive step. The FM also mentioned formalising cryptocurrency, 30% tax on income from transfer of virtual digital assets, and announcement of a blockchain-based and RBI-backed Central Bank Digital Currency (CBDC). With tech advancement, innovation, and widespread adoption of digital payments, the government should also focus on raising awareness and education around the importance of cybersecurity, privacy and data security among businesses and consumers for sustainable growth," said Pankit Desai, Co-founder CEO, Sequretek, a Mumbai-based cyber security startup.

"This budget shows that technology enablement for transparency and roll-out at scale remains at the heart of the Government. Every aspect of the Budget speech has this aspect in mind. At the macro level, this tech enablement as an integral part of governance will be a boost for all new-age tech companies and would further enhance the environment of new-age digital and tech companies. Drones have now become an integral part of the implementation of schemes be it in agritech, in defence and other areas.

The creation of Nabard Agritech Fund for 'Kisan Drones' shows the Government's recognition of a new view on how to upgrade farming. Recognition of digital assets and bringing them under the tax structure is an excellent initiative as this would bring these into the mainstream. The tax on crypto/ NFTs will now make it legalised and users won’t be able to circumvent tax and other financial regularities.

In addition to this, Defence, Artificial Intelligence (AI), geospatial systems, drones, space economy, genomics & pharmaceuticals and clean mobility have immense potential to achieve sustainable development and offer employment to millions. The government will enable development in these sectors through the startup community. This is a long-term directional growth budget and can be called the “digital future growth budget, ” said Bhaskar Majumdar, Managing Partner, Unicorn India Ventures​​​​​​.

"The overall, sharp rebound and recovery of the economy from the adverse effects of the pandemic is reflective of our country's strong resilience"- Finance Minister @nsitharaman

Check out the FM's full #Budget2022 speech here🔗https://t.co/79SDlHbFaW#AatmanirbharBharatKaBudget pic.twitter.com/5QuFzdenJS

— PIB India (@PIB_India) February 1, 2022

"The honourable Finance Minister has again announced that the auctions for 5G spectrum and roll out will happen in the fiscal year 2022-23. The roll-out across the country will also happen much faster than other previous generation roll-outs considering the fact that the FM, in her speech has also talked about fiberisation of all villages by 2025. Focus on digital education including digital universities will further push the need for high speed broadband across the country. While the details of the PLI for design led manufacturing in the 5G space are awaited, it could be broadened beyond manufacturers to the TSPs and telecom infrastructure players.Also, the USO funds have historically been used for the rural infrastructure roll-out. A 5% allocation towards R&D and commercialization of the technology could help some of the indigenous niche players building up technologies around O-RAN and Private networks," saidPeeyush Vaish, Partner and Telecom Sector Leader, Deloitte India.

We stand with the government in its exhortation for Sabka Prayas. The private sector is committed to nation building, job creation and will work with the government and the people of India to fulfill our goals. #EaseOfDoingBusiness #SabkaPrayas #Budget2022 #NirmalaSitharaman

— Anil Agarwal (@AnilAgarwal_Ved) February 1, 2022

With today’s budget focussed on capex, digital and welfare - I can clearly imagine the future. Today’s wordle – Budget edition#FMSitharaman #UnscramblingGrowth pic.twitter.com/ieDunjRRy7

— Harsh Goenka (@hvgoenka) February 1, 2022

"5G will finally become a reality for 1.3 bn citizens of India and will help us with "Connecting the Unconnected". To streamline and fasten the process, the government should also look at models of spectrum auction. In rural areas, the government should create schemes for higher utilization of such spectrum rather than looking to maximize auction prices. Public 5G built and operated in a decentralized manner will also help us create more jobs in rural areas." said Mr. Umakant Soni, CEO & Cofounder, ARTPARK (AI & Robotics Technology Park).

Speaking on #AatmanirbharBharatKaBudget 2022. https://t.co/vqr6tNskoD

— Narendra Modi (@narendramodi) February 1, 2022

"The Finance Minister has unveiled a Budget that aims to bridge the economic gap between India and Bharat. The proposed policies are an inspiring start in what will hopefully provide stimuli for continued growth, leading us closer towards our goal of achieving sustained acceleration! I welcome the focus on digital aspects of education and creating greater access for students with structured, high-quality content. The announcement of Digital University is most welcome and in line with the trend of online schools across the country. But, it misses the opportunity to leapfrog with more significant innovation and investment for improved access, equity and affordability. The structural flaws of the education sector and problems on the ground could have been addressed. Exciting times are ahead for Digital Education,” saidYeshwanth Raj Parasmal, Co-founder, 21K School.

M0di G0vernment’s Zer0 Sum Budget!

Nothing for
- Salaried class
- Middle class
- The poor & deprived
- Youth
- Farmers
- MSMEs

— Rahul Gandhi (@RahulGandhi) February 1, 2022

"The setting up of the AVGC (Animation Visual Effects, Gaming, and Comics) promotion task force announced in the Union Budget will help India achieve its potential of achieving 20 lakh jobs according to Deloitte projections. These are critical skills for the growth of the metaverse and India is poised to take advantage of this ecosystem,"Jehil Thakkar, Partner and Media and Entertainment Sector Leader, Deloitte India

“Finance Minister Nirmala Sitharaman’s Budget for FY23 is well balanced with fiscal prudence and ‘ease of doing business’ as the main themes. I believe the 35% increase in capital expenditure for FY23 is positive and will drive the creation of much-needed infrastructure and jobs. The FM must also be commended for maintaining the fiscal deficit at 6.9% of GDP in FY22. The Budget’s focus on ensuring regulatory ease by promoting digital trust and digital compliance steps in the right direction. We were expecting some incentives for Pharma R&D in the Budget as public investment is very low in this critical area of research and innovation, which are key for spurring exponential economic growth. The FM has assured the government’s support for R&D expenditure in sunrise areas such as drones, AI, genomics, space, clean energy, etc. We will need to see the fine print if there is anything on pharma. The only concern I have is the absence of any fiscal stimulus for the MSME & Services sector that has borne the brunt of the pandemic with large layoffs and job losses reflected in a sharp drop in rural and semi-urban consumption. The government will need to address this urgently. Overall, it was a positive Budget without any negative surprises.” said Kiran Mazumdar Shaw, Chairperson, Biocon & Biocon Biologics

“International travel has been severely impacted by the pandemic, which is why we are pleased with the introduction of e-passports with embedded chips. This will provide a big boost to travel and add a level of convenience for international travelers. Additionally, the expansion of the Emergency Credit Line Guarantee Scheme by Rs 50,000 crore to Rs 5 Lakh crore will enable the small travel operators and stakeholders within the travel and tourism industry to reel back from the disruptive impact of the pandemic,” saidRikant Pittie, Co-founder- EaseMyTrip

"The announcement to introduce Central bank digital currency (CBDC) by Nirmala Sitharaman, the hon'ble finance minister in Budget 2022 is an encouraging development. The remark is a testimony that the government is supportive of utilizing the digital currency for larger masses. The adoption of CBDC will improve and make it easier for people to use Polytrade with the supporting infra provided by the govt. The development will make digital currencies more accessible to the people just as UPI made digital cash easier to use. We expect that in near future the government will continue to support and encourage digital currencies that will propel the GDP to $ 5 trillion as envisaged by our PM Narendra Modi," said Piyush Gupta, CEO, Polytrade.

“The global pandemic forced the closure of educational institutions which led to a huge loss of learning for children in the rural areas. The government’s decision to launch Digital DESH e-portal for the skilling, reskilling, and upskilling of the youth is definitely a great incentive keeping in mind the importance of upskilling and reskilling in the present scenario. Another highlight of the Union Budget 2022 is the setting up of a Digital University to provide access to students for world-class quality education with ISTE Standards. This is going to drive a huge change in the lives of students across the country. The initiatives announced by the Government of India today will pave the way for building a workforce that will be skilled and ahead of the curve in their respective professions.”saidKrishna Kumar, Founder and CEO, Simplilearn.

"The FM's vision on design-led manufacturing for 5G ecosystem as part of PLI scheme and measures for setting up a strong 5G infrastructure is promising and has huge potential for growth in the telecom sector. The PPP model to be used for firming up the 5G infrastructure will enable leveraging on the strength of private–public partnerships. The launch of spectrum auction and scale at which optic fiber network is intended to be expanded is laudable," saidArvind Sharma, Partner, Shardul Amarchand Mangaldas & Co.

In the spirit of #HonoringTheHonest, #Budget2022 takes several steps to ease the compliance burden on honest taxpayers. #AtmaNirbharBharatKaBudget pic.twitter.com/7AEayLj4Dg

— NSitharamanOffice (@nsitharamanoffc) February 1, 2022

Taxpayers can now file updated returns within 2 years of relevant AY

Read more here

Karnataka's developmental activities will recieve a huge boost with the various announcements and we look forward to ensuring effective utilisation of the resources allocated.#AatmanirbharBharatKaBudget

(2/2)

— Basavaraj S Bommai (@BSBommai) February 1, 2022

"The policies should take a holistic approach to ensure that there is a proper and adequate supply network of swappable packs and swap stations so that it works as if someone is fuelling their vehicle and is able to 'swap' in 2-3 minutes. Ground charging does not really work except at home (not for commercial purposes) because of the load it will exert on the grid and the time it takes. Convenience especially for the last mile operators, gig economy players and home tests/collections is key. Second, there is a proliferation of low-quality Chinese players who are 'cheap'. There are substantial safety and dependency issues being built into the system. If the policy can build in a structure to raise the safety and 'Atmanirbhar' aspects and the made in India aspects - that will be a boon for India in the long run. There are many Indian manufacturers of safe batteries and swap stations who would then not have to choose to lower quality and safety standards," said Sambit Chakraborty, Board of Adviser, Indigrid Technology

"The announcement of green bonds to raise capital focused towards carbon footprint reduction could be a significant milestone for industries that work towards sustainability. The green bonds will aid public sector projects, which in turn would support and grow ancillary private businesses that provide products and services towards this.The proposed reforms around SEZ administration and streamlining customs to only risk-based checks will significantly enhance the productivity and effectiveness of export-oriented units that manufacture and products and services exclusively for the global market, " saidDipanjan Purkayastha, CEO & Co-founder,HyperXchange

"This is a forward-looking budget which is both inclusive and progressive. Thrust on digitalization of education and focus on upgrading syllabus across colleges will equip upcoming human talent with the right tools. The use of high-technology such as Kisan drones as well as battery-swapping will turn out to e growth engines for both agri-based and service-based economies. The introduction of a regulated digital currency is forward-looking and is in the spirit of harnessing blockchain and other exponential technologies," said Nitesh Jain, Founder & CEO, BeSingular

This budget, brought by the Modi government, is a visionary budget, which will prove to be a budget to change the scale of India's economy. This budget will make India self-reliant and lay the foundation for a new India of the 100th year of independence. I congratulate @narendramodi ji and @nsitharaman ji for this.

BUDGET HAS ZERO FOR COMMON PEOPLE, WHO ARE GETTING CRUSHED BY UNEMPLOYMENT & INFLATION. GOVT IS LOST IN BIG WORDS SIGNIFYING NOTHING - A PEGASUS SPIN BUDGET

— Mamata Banerjee (@MamataOfficial) February 1, 2022

The Budget outlines the Government’s focus on Atamnirbharata and Prime Minister Shri @narendramodi’s vision for development and pro people reforms.

It is a growth oriented Budget focused on harnessing the energies of New India. #AatmanirbharBharatKaBudget

— Rajnath Singh (@rajnathsingh) February 1, 2022

Budget for whom?
The richest 10% Indians owns 75% of the country's wealth.
Bottom 60% own less than 5%.
Why are those who amassed super profits during the pandemic, while joblessness, poverty & hunger have grown, not being taxed more?#Budget2022

— Sitaram Yechury (@SitaramYechury) February 1, 2022

Diamonds are this government’s best friend.

For the rest— farmers, middle class, daily earners, unemployed— this is a PM (Does Not) Care #Budget2022

— Derek O'Brien | ডেরেক ও'ব্রায়েন (@derekobrienmp) February 1, 2022

It’s pro- corporate budget..
It’s Pro Rich Budget..
HumDo HamaraDo again proved..
Nothing for a jobless youth,
Nothing for farmers..
Nothing for middle class..
Again Nirmala madam Fails ..#Budget2022

— Manickam Tagore .B🇮🇳✋மாணிக்கம் தாகூர்.ப (@manickamtagore) February 1, 2022

On the one hand, the Budget talks of climate action and protecting the environment. On the other, it pushes ecologically disastrous river-linking projects. Rhetoric sounds nice. But actions matter more. On that front, the Modi govt is on a destructive path.

— Jairam Ramesh (@Jairam_Ramesh) February 1, 2022

"Wearing a startup enabler lens, what is noteworthy is the mention of technologies ranging across AI, IOT, Blockchain and Digital across core sectors of the economy. India @ 75 is setting up a massive road map for India @ 100 to be a technology powerhouse in infrastructure, financial services, agriculture and national defense. Setting up a roadmap for adoption of CBDC and making digital and fintech as the priority of the Gov't stands out in the Budget 2022 announcement. Allocation of INR 1,500 Crores for development initiatives in the North East is another big one, that should see the startup ecosystem grow in the region," said Ajay Ramasubramaniam, Co-Founder & CEO, Startup Reseau.

"We welcome the vision outlined in the Union Budget 2022 regarding digital payments and how it can be a key tool towards enabling financial inclusion. The Budget has acknowledged that taking forward the digital banking and fintech innovations is the way to go - it is proposed to set up 75 digital banking units in 75 districts of the country by scheduled commercial banks. We hope to be able to support this mission and vision of financial inclusion by providing secured, transparent and accessible credit to women. Financial inclusion will play a key role in ensuring that the goal of 9.2% economic growth is achieved," saidPoshak Agrawal, Co-Founder & CEO, Florence Capital.

Brevity has always been a virtue. @nsitharaman ‘s shortest budget address may prove to be the most impactful…

— anand mahindra (@anandmahindra) February 1, 2022

India’s Salaried Class & Middle Class were hoping for relief in times of pandemic, all round pay cuts and back breaking inflation.

FM & PM have again deeply disappointed them in Direct Tax measures.

This is a betrayal of India’s Salaries Class & Middle Class.#Budget2022

— Randeep Singh Surjewala (@rssurjewala) February 1, 2022

"There has been concentrated efforts in the budget to fill the much-needed credit gap to the stressed sector – ELCGS extension specially for struggling hospitality sector is much needed, the sector will take some more time to revive, unlike other sectors. Proposed CGTMSE revamp shall help the micro sector, who could not avail ECLGS because they were not having existing credit outstanding, which was a basic requirement for availing ECLGS. PLI extension to more sectors and increased fund allocation shall boost the MSME being backward linked," said Vikesh Agrawal - CEO and Founder of AjvaFintech

“PLI scheme extension to 5G roll-out and the commitment to roll out fibre in all villages by 2025 will give an additional thrust to investment in new technologies in the telecom sector,” saidPeeyush Vaish, Partner and Telecom Sector Leader, Deloitte India.

“Deep tech is an idea whose time has come. All our focus so far has been on the application layer which provided solutions to problems and business opportunities. A focus on deep tech will provide that strategic depth. Wish the government expands and extends this,” saidPN Sudarshan, Partner and TMT Industry Leader, Deloitte India.

"Continued emphasis on the importance of mobile connectivity and broadband for economic development, especially in rural India, will further boost the telecommunication and associated sectors. The inclusion of design-led initiatives for 5G and other technologies in PLI is a good step forward. While an announcement on implementing Bharatnet optical fibre cable contracts through PPP has been made, an expeditious approach is needed to avoid delays given that the PPP model has witnessed mixed experience in other infrastructure sectors," saidJaideep Ghosh, COO, Shardul Amarchand Mangaldas & Co.

Markets reactions live update (here)

IRB Infrastructure, Ashoka Buildcon and Dilip Buildcon shares were up to four percent in late morning deals. L&T was up nearly one percent.

"Digital Rupee to be issued using blockchain and other technologies; to be issued by RBI starting 2022-23. This will give a big boost to the economy," saidFM Nirmala Sitharaman

The Indian government will also roll-out E-passports with embedded chips starting 2022-23, minister added

Extension of ECLGS scheme till Mar 2023 and enhancement of 50k crores exclusively for MSMEs in hospitality & related areas is very welcome; it was a key issue highlighted by @ficci_india in its pre-budget memorandum. @nsitharaman @kishanreddybjp

— Subhrakant Panda (@subhrakantpanda) February 1, 2022

Confederation of Indian Industry (CII) welcomes the decision to extend (Emergency Credit Line Guarantee Scheme) ECLGS up to March 2023 and increase in guarantee cover to Rs 5 lakh cr. Emphasis on hospitality will bring a lot of relief and has been a key demand from CII. It also appreciatedthe announcement of the Telemental Health Programme and opening of 23 dedicated mental health centres across India, in partnership with NIMHANS and IIIT.

Furthermore, "The use of Kisan Drones for Crop Assessments, Digitization of land records and delivery of crop nutrition is a much-needed move for making Indian agriculture globally competitive," noted CII.

"An open platform for the National Digital Health Ecosystem will be rolled out. It will consist of digital registries of health providers and health facilities, unique health identity and universal access to health facilities," said FM Nirmala Sitharaman

"PM Gati Shakti Master Plan for Expressways to be formulated in 2022-23, to facilitate faster movement of people and goods. NH network to be expanded by 25,000 km in 2022-23. Rs. 20,000 crores to be mobilized to complement public resources," saidFM Nirmala Sitharaman

Get live updates on Union Budget 2022 here

Finance Minister Nirmala Sitharaman will present this year's Budget as the country fights the third wave of the Covid-19 pandemic. Before the finance minister delivers her Budget speech, here are some explainers that you should read.

Read more

In the wake services sector getting bruised by the Covid-19 pandemic, manufacturing may push the next wave of growth in India and the Union Budget is likely to come up with big incentives for the sector.

The incentives will not only include tax holidays and extension of tax benefits to new and emerging units in the sector but also an extension of production-linked benefits to sectors hitherto not covered.

Read more

Hello readers! Finance Minister Nirmala Sitharaman will present this year's Union Budget at 11 am amid the third wave of Covid-19. India is likely to step up spending on infrastructure, health services and social programmes in the Budget to try to set the economy on a firmer footing. Follow DH for live updates of reactions to Union Budget 2022.