“The budget 2017 is extremely positive and people friendly. It is favorable for the technology sector, small and medium sized enterprises significantly contributing towards the growth of the Indian economy. The Government’s undertaking to make tax rates reasonable and expand tax base will be a boost for our businesses. The encouragement given to start ups and tax reduction to MSME is a positive step towards make in India initiative. This will ensure new age organisations to be more globally competitive. India’s GDP will be on the upsurge. The 25% corporate tax cap for companies up to 50Cr revenue is a great step for MSME sector, which will positively benefit more than 90% Indian firms and would enable them to invest in new technology, R & D and explore their digital journey. 50% personal tax reduction for 2L to 5L slab will certainly help the emerging class.
The ‘Make in India’ initiative will also bring in growth opportunities for local Industries and increase industry output. A considerable emphasis laid on technology in all the development areas and sectors assures us that technology will be at the forefront for India’s economic growth and digital transformation. This budget, has given a momentous push to infrastructure which will also act as an integrated approach to improve security and safety for the citizens.”
The removal of Basic Customs Duty (BCD) on Fingerprint Scanner/ Reader and Iris Scanner is a welcome these scanners and readers indigenously. The use of Adhaar authentication in multiple applications would increase the market for Adhaar based Biometric authentication systems multiple times.
The government has also acknowledged the need to bring down lending rates to ensure cheaper funds for both industry as well as consumers and we hope GST will be able to address that. It is heartening is that the government has announced multiple measures which can improve local manufacturing and create a better component ecosystem for Electronics manufacturers. The allocation of Rs 745 crore for Electronics is a welcome move which will provide impetus to local component manufacturing in the electronics sector.
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The budget allocated towards MSIPs and Electronics Development Fund (EDF) looks progressive and will surely reduce dependency on imports in the industry.
We were expecting Financial Budget 2017 to offer incentives to start inflow towards design led manufacturing in place of assembly led manufacturing ecosystem, but it seems government not yet convinced towards adopting multiple layered incentives for localization while increasing the duties on CBU (Completely built Units) but we are sure that many such initiatives would be underway in coming times.
We look forward to the next draft of GST to come forward, however the government’s move on imposing a 2% special additional duty on populated printed circuit boards (PCB) used for mobile phones imported into the country, will provide adequate protection to the domestic industry and give the necessary impetus to Make-in-India under the GST regime.
The GST is proposed to implement on July 1st, so indirect taxes such as, excise, customs, service tax have not been touched. Manufacturing allocation is good initiative to start off. With such initiatives,India, can grow on the charts of GDP.
“Make in India” is a great opportunity given India has attracted huge investments in local manufacturing lately not only benefitting the economic growth but also creating increased employment. The investment of Rs. 10,000 crore towards that aim will be beneficial to further grow local manufacturing. At “Sparsh” we are committed to support the Make in India initiative and invest accordingly.
With focus on growth, it is a progressive budget and is a stepping stone to India’s growth story. The delivery however will be contingent on effective implementation of these policies.”
This budget was intended to bring in a lot of optimism and I think the government has clearly defined its intention to revive the rural economy with spending on key areas demarcated, including the skill based education, healthcare, housing and infrastructure development which will definitely generate income in the rural areas.
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