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II industry's life solutions leaders have expressed their expectations about the coming Budget'22.
Dinesh Aggarwal, Joint MD, Panasonic Life Solutions India says, "After the 2nd wave affected the retail sector in the first quarter, the recovery for us was much faster. Real estate developers had ensured functioning labour to avoid shutting down of construction and restraining a mass exodus. As global economies were getting affected, India was still strong and there was a bounce back in the market despite the underlying situation. However, with the unprecedented increase in the price of metals, plastic raw material, paper and transportation, the overall growth was hit. This was compounded by the disruption of supplies especially for electronic components due to container shortage and disruption of shipping lines. This has already reflected in the form of inflation across all product categories that we cover, essentials and discretionary items. "
He continues, "Amidst the ongoing 3rd wave of the pandemic, the upcoming union budget 2022-23 is expected to play a pivotal role in countering inflation and galvanizing demand, especially for private consumption. The long-term intent of the Government towards the infrastructure sector with the committed investments and special focus on manufacturing will get further highlighted and accelerated through the Production Linked Incentive (PLI) schemes. This is a significant step towards making India a global manufacturing hub. There is thus a need for incentivising modernization and innovation so that the industry across the infrastructure, manufacturing and agricultural sectors will have the scope to be more competitive and gain scales of their economy. This will further align with the objectives of Atmanirbhar Bharat. "
"There is an expectancy of the Budget to cover private public partnership, which will encourage the use of the existing physical infrastructure of the Government across India and accelerate skills as well. This can be in the form of income tax benefit or specific grants by the Government."
--Dinesh Aggarwal, Joint MD, Panasonic Life Solutions India
He concludes, "Some areas where the continuation of work is expected includes the optimization of GST rates; FDI inflow in all sectors including the construction sector; boosting exports and prompting ‘made in India’ globally; encouraging affordable housing and supporting real estate developers through priority lending and liquidity boosting measures. These efforts will help in stimulating our economy.
"With India committed to reduction in carbon footprint, reiterated by honorable Prime Minister in opening address at the WEF, Davos this year; a further impetus to manufacturing of electric vehicles and establishment of charging infrastructure is expected. This maybe supported with a policy announcement on generation and distribution of renewable energy across India overcoming state-wise barriers.
We are optimistic about the Union Budget 2022-23, which we believe will support a consistent GDP growth of over 8%, despite the challenge of pandemic."
“2021 was a transformative year for the fintech industry with significant technology adoption in financial services. While traditional lending still accounts as a major credit provider in India, digital lending has picked up pace with the ease of process, less paperwork and use of alternate data sources, making it a key enabler for the MSME sector. "
--Lalit Mehta, Co-founder & CEO, Decimal Technologies
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Lalit Mehta, Co-Founder and CEO, Decimal Technologies says, "Fintech players have already shown willingness to work with the government to curb the menace of the illegal digital lending apps. Budget 2022 should introduce regulations that will help in greater credit access to MSMEs and curbing illegal activities while building trust in the digital lending process for the last mile. In line with the government’s goal of creating a digital economy, introducing credit schemes will incentivise the sector and help in providing timely credit to MSMEs that have struggled due to the lack of credit accessibility through traditional means of lending which has directly affected their business opportunity. We have also seen a rise in the number of start-ups who have turned unicorns in the last year that showcases the potential of the startup ecosystem in India. We expect the government to introduce regulatory changes that would create an easy line of access for start-ups & MSMEs to secure credit from online lending players. This will further help in boosting our economy”.
"UPI as a revolution from India, has reached only 20 Crore users of 118 Crore mobile subscribers in India, Government should incentivise new users, primarily the Low Middle Income and Jan Dhan Account holders who on-board on UPI for the First time, also provide incentives to Fintech's into Feature Phone, Voice & USSD based payments space to help absorb operational cost of technology so that UPI revolution reach into nook and corners of India."
--Mitesh L Thakker, Founder & CEO, MissCallPay
We’ve seen a substantial spike in the adoption of digital payments in the last year. I’m hoping that in the upcoming budget, the Government will think of alternatives to the Zero MDR policy, as that will help promote e-payments and drive significant digital adoption amongst businesses. Initiatives like these will also lead to new innovations in the payments infrastructure.
Secondly, the crisis is likely to leave long-lasting scars on our society and economies, including the SME sector where issues of high indebtedness are particularly salient. It would be desirable for the Government to increase contribution to the FFS funds for startups. Hassle-free loan disbursements, automation of tax and compliance, paper-less approvals, and incentives to adopt digital banking practices will also be welcome changes that can support the growth of MSMEs.
Lastly, we’ve seen numerous startups incentivize employees this past year with buying back ESOPs. Deferring tax payments when exercising the option, plus waiving off tax for some ESOP receipts will also be a laudable change in the new budget.”
--Harshil Mathur, CEO & Co-Founder - Razorpay
The life solutions leaders have shown a keen interest in how the budget shapes the industry's fortunes in the coming months.