ELE Times March 2017 ELE Times | Page 29

Cover Story
Suman Reddy MD , Pegasystems
India

Well-balanced budget

“ Overall it was a well-balanced budget , we need to keep in the mind some of the macro-situations the FM mentioned in terms of US interest rates going up and Trump ’ s recent announcement . As a country we have to look inward in order transform into a balanced and digital economy . Similarly , companies across sectors need to start looking within the country to increase revenue and up employment opportunities .
The budget reflects the government ’ s strong stance to tackle our tax noncompliant society and eliminate black money . The government ’ s approach to provide relief and promote digital economy among individuals as well as companies through lowering of taxslabs , provision of exemptions , reduction of customs duty , retention of MAT and capping of cash transactions ; is a definite change we can all look forward to . However , from start-up point of view for players like us who engage with entrepreneurs , we were expecting a lot more tax incentives and provisions for easier setting-up or closure of businesses . Given that India is expected to have 20,000 start-ups in the three next years , effective policies are critical to simulate growth .
From a digitization point of view , the government ’ s decision to shift to digital platforms benefitting the public across sectors such as small-scale business , healthcare and railways , will help accelerate our growth towards becoming a digital-economy . By enforcing all sectors to adopt digital economy , there is an indirect but positive impact on the start-up community . There by , creating opportunities to innovate and set-up new businesses .”
Sanjeev Sardana President , IEEMA

Focused on Rural Development and Infrastructure Up gradation

Increased allocation to Deen Dayal
housing for poor , thrust in Pradhan Mantri
Upadhaya Gram Jyoti Yojna and Integrated
Gram Sadak Yojna and government ’ s
Power Development Scheme will provide a
commitment to electrify all villages by
much needed impetus to the sector . Tax
May 2018 , will result in an increase in
relief of 5 % for companies below Rs . 50
domestic demand . The increased
Crore turnover is welcome . This will
expenditure in the rural and infrastructure
encourage the morale of the industry as
sector will result in higher disposable
80 % of electrical equipment industry is
income within the economy leading to
under MSME . Sanjeev Sardana , President ,
long term stable growth of the country .
IEEMA
Total outlay of 3.96 lakh crore in
Given that this is an election year , the
infrastructure sector is a positive news .
budget doesn ’ t seems to be populist , on
Further , the government ’ s target of
the contrary bold decisions on electoral
putting up 3500 kms of railway lines ,
funding and tax compliance are a welcome
modernization of railway stations through
step . However , Individual salary relief
private partnership and new metro rail
which was expected has only come as a
policy will benefit the domestic electrical
small relief . Sunil Misra , Director General ,
industry .
IEEMA
The Finance Minister also announced , 20
The increase in allocation to the rural
GW of solar capacity to be installed , giving
sector such as MNERGA , providing 1 crore
impetus to the renewable sector .
Partha Iyengar VP and Gartner Fellow

Continued focus on Infrastructure

In more specific terms , the biggest
painful demonetization exercise . The
positive is the continued focus on
moves to curb the black economy also
infrastructure ( roads , railway , housing ,
bodes well for accelerated GDP growth as
tier-II airports et al ) in general and rural
more of the ‘ shadow economy ’ becomes
infrastructure ( affordable homes , rural
visible and integrated into the overall
electrification ) in particular , including e-
economic activity .
infrastructure with the increased allocation to BharatNet ( erstwhile NOFN ).
This will allow commercial activity to expand to the rural segment in a much more efficient manner , if the aim of achieving the broadband connectivity targets by 2018 is actually met .
In another sign of the fact that the IT industry has become quite mature and does not need sops to continue its growth trend ( other factors like Trump notwithstanding ), there were no overt steps taken – and none expected – for the industry , and there is no hue and cry
The continued focus on moving India
about it . In a sense it is a no-news is goodtowards
a more transparent and digital
news story for the sector from a budget
economy is encouraging , in order to really
perspective .”
capitalize on the long term gains of the
ELE Times | 29 | March , 2017