Today, Indian Finance Minister Nirmala Sitharaman is presenting the Union budget for the financial year 2020-21 (Budget 2020-21). This budget is being viewed as the most important budget for the second term of Prime Minister Narendra Modi's government because it will set the direction for the economy which is facing economic slowdown and unemployment.
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Industries and individuals alike had high expectations from the government to take tangible steps but the budget 2020 seems to have failed expectations.
If at all the GDP were to clip at the projected 5.7-6.6 percent in FY21, it will be thanked more to the base effect-FY20 growth at an 11-year low of 5 percent, down from 6.1 percent in FY19 on the back of a 48-year low nominal growth of at 7.5 percent in FY20. "The given its tied hands, the government has aimed at some measured moves in the budget to bolster growth. Most of these, however, are not expected to provide a short-term boost," says the Crisil report.
Also Read: Budget measures too long term, unlikely to meet growth targets in FY21: Crisil
"The setting up of an investment cell is very interesting. Getting access to the Fund of Funds has been something most startups are looking forward to. With the investment cell, this is further augmented by getting advice on setting up your business and also investment options available to startups," said Deepak Ananth, CEO & Co-founder, ScoutMyTrip on Budget 2020-21. Here further added, "The FM also talked about how the travel and tourism industry is being infused with INCR 2500 Cr this year. As a travel Startup, this is great news as much as it is for increasing earnings at a local level for individuals,".
Ananth also opined that MSMEs stand to benefit from a single platform e-marketplace for the exchange of goods. We are excited to see what this entails and how it pans out, he added.
A sum of Rs 99,300 crores for education for the year 2020-21 will be provided, Finance Minister Nirmala Sitharaman said on Saturday while presenting the second union budget of Modi's re-elected government.
For more details, please read
Budget 2020-21: Govt announces Rs 99,300 crores for education sector
Promise to double the farmers’ income by 2022, is a fairy tale if you don’t talk about Minimum Support Price (MSP) and other recommendations of Dr. Swaminathan committee.
For further details, please read
Budget 2020: Finance Minister promises to double farmers’ income but ignores their problems
The economists have offered mixed views on Budget 2020 presented by Union Finance Minister Nirmala Sitharaman on February 1. Thought a number of economists have appraised the announcements but expressed concerns on implementation.
Also Read: Economists offer mixed views on Budget
CAIT National President Mr. B.C.Bhartia & Secretary General Mr. Praveen Khandelwal said that the announcements made in the budget are put to implementation in a strategic manner with a defined time frame will certainly lead India to a 5 trillion economy. The budget will promote more exports which will gain more share in the global market space and consolidate the Country's position at the global level.
Also Read: Budget 2020 will boost income and enhance purchasing power: CAIT
Manit Parikh, Country Head India, ELSA Corp has said the decision of the Central government to invest Rs 3,000 Cr in skill development would ensure quality in skill development in India.
"There is a huge demand for individuals in various industries countries internationally as well. However, the skills do not match in accordance to demand by employers. So, by the government proposal of Rs 3,000 crore it allows the country to create quality skill development which will be available at affordable cost, focusing on 5 key components that are Visual, Reading, Listening, Speaking and Thinking among others are very important, especially via the use of emerging technologies such as Artificial Intelligence (AI), Augmented Reality (AR) / Virtual Reality (VR) and more," said Parikh. "There have been many Ed-Tech companies in India like BYJUs, ELSA Speak and more who are at the forefront of this by engaging with both youth and adults in Tier 1 cities and beyond to empower and uplift them to have jobs and move away from ones which may soon become obsolete," he added.
Mr. Parikh also highlighted the role of youths in enabling US$ 5 trillion Economy target of India. The advantage of the 'youth dividend' needs to be channelized and enabled to put the country on the global map, suggested Parikh. ELSA Corp is an Edu-Tech headquartered in the US with tech offices in India, Portugal, and Vietnam.
Barco India's Managing Director Rajiv Bhalla has applauded the budget 2020-21 and said that his company looks forward to partnering with the government in the new plans announced as part of the budget.
“The 2020 Budget has been drafted around the key themes of talent, technology, entrepreneurship, and sustainability and we applaud the Centre’s efforts at boosting the economy. The Finance Minister has maintained focus on tourism by announcing that iconic destinations will be connected by “corporate” trains like Tejas and with the plan to develop 5 archaeological sites into iconic sites. Five new smart cities have also been proposed and Barco looks forward to partnering with the Government in this direction,” says Rajiv Bhalla.
"The ESOP policy is a good acknowledgment of how incentives in private companies work. However, the limitations need to be examined to understand whether these work for younger startups in a practical manner. Most employees would exercise options at the time if quitting or when the actual sale happens. In the former case this new policy is still imposing taxes, it seems. The devil is in the details," Satyen Kothari, Founder & CEO, Cube Wealth (ex-co-founder Citrus Payments).
Cube Wealth is a global app-based wealth management company. It gives users access to 17+ curated investment options from thousands of options available in the Indian financial market, some of which include mutual funds, foreign stocks, gold, and P2P lending. Cube Wealth is backed by prominent international investors, including Singapore-based venture fund Beenext, Japan-based Asuka Holding and US-based venture fund 500 Startups.
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