Union Budget 2022: What the Industry Expects from the Upcoming Budget Session

Union Budget 2022 is all set to be announced on in the first week of February, and the industry has various expectations from the Indian Government

The Union Budget 2022 is all set to be presented in the Parliament on 1 February 2022 by Nirmala Sitaraman, Union Finance Minister, Government of India. Considering the ongoing pandemic, and the associated hardships, the industry is expecting a lot from the Indian Government this time around. Some of the predictions that are being made by experts are increased focus on digitalisation for MSMEs as the pandemic has ushered in an era of digital transformation. Listed below are some of the expectations by industry leaders from across various sectors.

Union Budget 2022 Expectations 

Ramanujam Komanduri, Country Manager, India, Pure Storage

With restrictions in place amidst the third wave of Covid, large enterprises as well as small businesses are seeing a dip in their business activities. Both corporates and taxpayers expect relief in the form of rebates in direct and indirect taxes in the upcoming budget. We also expect the introduction of simplified compliances to facilitate the ease of doing business. The Finance Ministry could also introduce special stimulus packages to the MSME sector which is vital for economic revival. There may also be a positive surprise in the form of a relaxation of GST regulation and relief for sectors that have particularly suffered during the pandemic. The Government, to provide further impetus to business growth, could also introduce fiscal policy initiatives to build a strong digital infrastructure for MSMEs and enterprises. While India has one of the most dynamic technology ecosystems globally, we hope that the government will reaffirm its commitment to ‘Digital India’ through appropriate allocations and policies in this Union budget.

Amit Nigam, COO and Executive Director, BANKIT

Nowadays, people are looking for more convenient banking services. As intriguing as it is, Start-ups and FinTech industry are quite handy to the public. Those who have comprehended the accelerated needs of not only the unbanked population but also of the underbanked population hold the brightest of future in the FinTech industry. The expected outcome of the efforts of FinTech industries is to make people rely on uncomplicated, safe, and one-stop-solution services. FinTech industry is based on technology and innovation. With a huge investment on IT infrastructure and manpower, we are expecting tax relaxations on these investments.

Dr. Ajeenkya DY Patil, Chairman of the DY Patil Group

The last 2 years have been difficult for all of us, and if I were to look for some sliver of positivity, it would be how we as a nation have responded to the challenges. I believe education is the foundation of a successful society and the exponential rate at which technology has enabled edtech solutions and their adoption over the last 18-24 months, has been pleasing to see.  There is a realisation that we need to enable our youth to ready themselves for the future and embrace the new flexible ways of learning and development to ensure they enter the workforce with the best possible preparation, not just from a knowledge perspective, but also with the right skill sets.  With Edtech we should now take the education to the students, wherever they are. With the upcoming budget, this government has a unique opportunity to show that India, with its young workforce, is ready to lead the way into the future of education. I am going to be keenly watching the Union Budget on February 1, 2022, and would welcome measures like tax relief, ease of raising capital for edtech sector, and also as a country, how much we are going to invest in the internet connectivity and reach to enhance our digital infrastructure.

Vipul Singh, Founder and CEO of Aarav Unmanned Systems (AUS)

In this Union Budget, we expect the government to promote the start-up ecosystem in the country and announce steps that will ease raising funds and create a favourable environment to conduct business. With Covid 19 pandemic, we have witnessed an accelerated process of digital transformation. We cannot deny that the pandemic has pushed people and businesses to adopt new ways to do things and reorient their behaviours. The government's announcing the Drone Rules 2021 and PLI scheme for the drone industry has given a push to this industry. Many drone companies in India have signed new deals to start large-scale, commercial business-to-business (B2B) drone operations in 2022. With this budget, we will expect the government to simplify policies, create a strong credit system for MSMEs and provide better working capital support that would help drone companies to scale up manufacturing and leverage the production-linked incentive (PLI) scheme. We will also witness employment opportunities which we believe are important for revival in demand post covid era.

Manish Lunia, co-founder of Flexiloans

Smaller businesses have suffered due to the pandemic, and the fear of Omicron doesn’t look to be subsiding soon. The government should focus on expanding digital footprints for enabling quicker access to financial services. Enabling systemic financial institutions like FinTech NBFCs to support the small businesses via cheaper funding schemes, the extension of Credit Guarantee Fund Trust for Micro and Small Enterprises cover, and attractive priority sector lending guidelines will help. For the Fintech ecosystem, dedicated Fintech Hub should enhance the visibility and growth of the sector.  Accepting Niti Aayog’s suggestions to get Digital Business Bank licenses would be a game-changer too. Also, Allowing FinTechs to have seamless customer compliance during lending will increase the viability of the entire ecosystem.

Rajiv Bhalla, MD, Barco India

The Indian Government is strongly focused on growth and development, and this trend has continued even during the pandemic. Given the hybrid normal we at Barco, are creating solutions aimed at promoting seamless remote work and bolstering the economy. We look forward to a budget which offers a roadmap for heightened economic revival, with greater spending on infrastructure and enhanced incentives for corporate capex. We believe that the country is still on track to achieve the $5-trillion vision by 2025 and expect a host of reforms aimed at empowering the start-up and entrepreneurial culture while augmenting healthcare and allied sectors. Technology, manufacturing, and R&D comprise the future of India and we look forward to initiatives aimed at making India a global super-power in these frontiers.   

Prashant Lohia, CEO and Founder, Ginesys

The ongoing pandemic has proved a catalyst for the digitization drive, with service providers stepping in to bridge the gap between the rural and urban landscapes. The Government is keen on a Digital India, and we expect the Union Budget 2023 to depict a greater and more sustained push towards the same, especially with regards to digital payments and retail technology. We expect the Union Budget to bring in more reforms for domestic retail manufacturers and brands as this would drive the Make in India and AatmaNirbhar Bharat initiatives while offering support and strengthening the local retail landscape. We are also keen on more clarity around the e-commerce guidelines and hope the Government promotes the sector in the upcoming budget. Further, we look forward to a well-calibrated reduction in income tax slabs as this will help taxpayers save money and, the money thus saved can fuel further consumption and economic growth, helping revive the economy as a whole. We also hope that the upcoming Budget focuses on growth and promotes spending by dropping the already deferred GST on textiles and garments

Prashant Solomon, MD, Chintels India and the Hon. Treasurer for CREDAI NCR

2021 was a ‘Year of Recovery’ for Indian Real Estate. The upcoming budget will play a pivotal role in fulfilling the growth trajectory across real estate and the overall economy. In order to improve the overall health of the sector, strengthen financial inflows and reduce delays there is a need for a single-window clearance system. Entitling REITs to invest in residential projects, relaxations in provisions for investing in REITs can also be an essential amendment that the government must take into consideration as it will enable developers and investors access to investment opportunities without spending a lot. Some of the other areas that require attention include tax rebates on housing loan interest rates, GST waiver for under-construction properties, rise in FDI inflow, expanding the government-backed stress fund SWAMIH, the introduction of new mechanisms to ensure ease of acquiring funds for real estate projects and most importantly attaining an industry status. It will help towards the elimination of unnecessary processes, better transparency, ease of getting approvals. Incentivising both, rental as well as affordable housing sectors accompanied by incentivisation of private investment in the affordable housing sector can also be a critical push that the government can induce to ensure the growth of India's real estate sector. For India to achieve the vision of a 5 Trillion economy, the government must provide requisite thrust to this labour-intensive sector as it supports employment as well as 200 ancillary industries including SMEs and MSMEs.