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