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Budget Reactions 2022: How India Is Set To Become A Robust Digital Economy?

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Finance Minister Nirmala Sitharaman has focused more on making a digital economy. Her budget statement also announced the launch of an open platform for the National Digital Health Ecosystem. However, let us explore expert opinions on the government's efforts to make India a digital economy.

 
Budget Reactions 2022: How India Is Set To Become A Robust Digital Economy?

Mr. Sasidhar, MD & CEO of SUB-K has said that "The Budget is a well-marked one in many senses. It rightly strikes a reasonable balance between addressing the key pillars of Health & Well-being, Inclusive Development, Human Capital, Innovation and R&D, apart from laying the path for a robust economy. India's growth is highest among all major economies; we are now in a strong position to withstand challenges. India is now on a path of making national growth inclusive and the budget 2022 will act as a catalyst for financial inclusion in India. Setting up 75 digital banks, an integrated portal for MSMEs, 100% digitization of post offices and central bank digital currency are welcome moves in this direction. It is financial inclusion that we at SubK not only strongly believe in but are also implementing at the grassroots by leveraging digital technologies, and are glad to see this as a key component of the budget as it is important for the overall balanced economic growth of the country".

 

Mr. Ashish Jain, CFO, LoanTap has expressed that "The budget is progressive and addresses all the major expectations from various sectors including Fintechs, EVs, MSMEs, Start-ups, etc. Allowing an extension of tax incentive by another year will hugely benefit the newly started ventures and will motivate the players to contribute to the macro-economic growth. The FM has suggested setting up an expert committee to monitor mobilization of funds to start-ups through VCs and Private equities which is a major welcome step. The introduction of central bank digital currency will further boost the digital economy and will hugely benefit the Fintech ecosystem. With setting up of 75 digital banking units in next two years India is set to become a robust digital economy".

Following the budget announcement, Mr. Akshay Mehrotra, Co-Founder and CEO of EarlySalary, stated that "Budget2022 focused on digital inclusion. We welcome the Indian Government's decision to use digital channels to increase access to finance. As a Digital Lender, EarlySalary is delighted to participate in this democratic solution for leveraging demographic-dividend. This will help the middle-class people to afford products and services using responsible-credit mechanisms. As a leading FinTech Industry player, we also welcome the idea of digital banks. Furthermore, making Post Offices a part of the core banking system will immensely benefit every Indian. In a nutshell, these decisions would set precedent for the Digital-Only banks and could become a reality very soon".

According to Mr. Amit Jain, CEO and Co-Founder of Ashika Wealth Management "This budget looks to be very pragmatic, conservative & growth-oriented for the Indian Economy. Apparently, it looks like that government is trying to commit & over deliver on both the Economic & Fiscal front. If I summarise the budget 2022-23 theme, then I will say it is a " Green-tech " budget with " self-sufficiency" as the underlying theme. In my view, in this era of Deglobalisation & re-emerging Geo-political power game between the Western World on one side & Russia, China on another side, India has to be a self-reliant Economy by 2040. This budget takes a step further in that direction along with Long term directional move for the Green Energy Economy & making India a manufacturing hub in the medium to long term. From here on Capital Goods, Infrastructure & Defence sector should be in focus. We appreciate the government's move for raising funds through Green Energy funds, which may be a Game Changer for selected PSU's, as there are a lot of Global Funds who invest in these ESG bonds & re-engineer the old Economy fossil fuel-based business models to new age green Energy business models across the Globe. We welcome the government's move to digitalise 1.5 lacs post offices across India & create 75 digital bank units, which will merge the rural informal economy into the mainstream economy. Also, blockchain-based digital INR is going to be a pride for India as a country. It will place India at par with the elite stature of Western World".

He further added that "In our view, this ongoing decade of 2030 is going to be the decade of capital Expenditure by Indian Corporates, as we are at the verge of beginning a new bull run of Indian Economy & this beginning can not be better than this budget as Government itself has surprised by increasing proposed capital expenditure to Rs.7.5 lacs crores, which is an increment of almost 40% compared to last budget & almost double for FY 2019-20. Also, a directional call for targeting fiscal deficit @ 4.5% by FY 2026 & limiting surcharge on long-term capital gains at 15%, is a soothing statement for Capital Markets. By taxing digital assets @ 30%, the Government has recognised Cryptocurrencies as an asset class, which may be a relief for 10 crores of Indian Investors, as now it will be an accepted Asset Class for Indian Investors. In my overall evaluation of this budget, I feel this budget will be the foundation stone for the Indian Economy to unfold its locked value in the long run".

"I believe the 2022 budget is focused around smart digital expenditures in not just education, but across sectors! A very forward-looking budget in my opinion will enable startups to take lead in India's next phase of development. The introduction of the e-passport facility will decrease friction in the immigration process and I look forward to Indians getting access to such world-class tech. Lastly, steps like capping off long-term capital gains at 15% clearly position this as a document which heard and implemented feedback from all quarters, and that's amazing" Akshay Chaturvedi, Founder & CEO of Leverage Edu, comments on the budget for 2022.

Mr. Paras Bothra- Chief investment Officer at Ashika India Alpha Fund has commented that "This Union Budget has been a positive one with an emphasis on CAPEX boost, which defines the government's pro-growth stance. The markets are reacting favourably to the budget. If you look at the capital expenditures, that has been raised to 35.4% to fund various infrastructure projects. That bodes well for a balanced and rapid recovery of the economy. The public investment will aid a very resilient India to come out of the pandemic distress. However, the focus on consumption is less emphatic as compared to the CAPEX part of the economy. The fiscal deficit also remains a bit elevated, though it is going to be lower than last year. So, infrastructure, capital goods, manufacturing led companies who have been given investment too, along with the solar production-linked incentive (PLI) scheme, affordable housing amongst others are the areas where the Government has laid major emphasis. The budget aims towards long-term growth with a focus on clean energy, which is also one of the key drivers of the future. The spendings are all growth-oriented, focused towards creating employment, and boost overall agri-economy and infrastructure creation".

Read more about: budget 2022 union budget 2022
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