Budget 2021 Expectations LIVE: What India Inc. wants from Modi government, Nirmala Sitharaman?
Union Budget 2021 Expectations LIVE: The Union Budget 2021 is scheduled to be presented in Parliament on February 1, 2021.
Union Budget 2021 Expectations LIVE: The Union Budget 2021 is scheduled to be presented in Parliament on February 1, 2021. Finance Minister Nirmala Sitharaman has promised a never before like Union Budget as the Modi government looks to give a further boost to Indian economy. Ahead of the Union Budget 2021 presentation, here are all the LIVE updates on the expectations from Finance Minister Nirmala Sitharaman and Union Budget 2021:-
Budget 2021 Expectations LIVE: Chet Jainn, Founder & CEO, Crowdera
Start-ups are considered as a backbone in the development of the Indian economy. The government should need to priorities on sustaining the growth that leads to an increase in profitability for the sector. As we enter the new year 2021, more focus should be emphasized on the Make in India incentive and big credibility should also be given to locals to vocal to strengthen the economy.
We are also expecting the growth in CSR sector as India Inc definitely needs to support the charity sector of India to amplify the impact work Indian NGOs already showed during the pandemic. Measures to keep fraudulent organizations in check is a must and should be made more clear. However, it is very important to incentivize the existing 3.2M Indian charities to work alongside the government to achieve the charitable and philanthropic goals.
Budget 2021 Expectations LIVE: Shivjeet Ghatge, CEO & Co Founder, StepSetGo
" The Indian startup ecosystem has played a pivotal role in the country's economic growth, especially given the tumultuous year it's seen in 2020. We've come out to become the third-largest robust startup landscape after the US and China and have churned out a staggering number of unicorns in the last few years. So for startups to continue to accelerate and build on this momentum, the budget this year will have to meet expectations that will enable this progress. A focal point for startups is the availability of working capital. While according to NASSCOM the investment ecosystem is set to return to its pre-pandemic levels, if not exceed it, a mobilized framework for funding would be a great start that would increase the ease of inflow and outflow for foreign investors. Considering the size of the Indian software exports, we are hopeful that this year's budget increases the prioritization of growth opportunities and incentives for indigenous, homegrown brands. For the startup industry, initiatives like 'Make in India' have helped put Indian tech companies at the forefront and drove international visibility"
Budget 2021 Expectations LIVE: Amit Goyal, CEO, India Sotheby's International Realty
“The honourable Finance Minister has already expressed her intention to push big ticket reforms in the 2021 union budget. Industry leaders and citizens have high expectations that budget announcements will lift the Indian economy from the pandemic slowdown and accelerate employment. The measures announced for boosting construction and housing are critical since real estate contributes more than 8% to the Indian economy and is an important employment generator. Today, the final cost of a home in India is loaded about 35% with taxes, premiums and stamp duty charges. A rationalisation of these levies for the next few years, can bring down the cost of housing and accelerate demand. The industry has been requesting for a GST removal on under construction homes to bring it on parity with ready homes which have no GST levy. This is a valid demand and I hope to hear something on that front. The removal of GST on under construction homes, will go a long way in boosting sales and improving cash flows for developers.”
Budget 2021 Expectations LIVE: Mrityunjay Shahi, Founder & CEO, SalaryDost
The year 2020 was unexceptional for every sector. Though the Fintech sector seemed to be profitable, it faced a lot of challenges in the Financial year. We are expecting a few key steps that should be taken by the Ministry of Finance in this financial year. First of all, there must be a regulatory authority assigned by RBI & Ministry of Electronics & Information Technology (MEITY) to keep an eye on the fresh industry players. There should be a pre-defined set of rules & regulations for the startups to manage their businesses ethically; respecting the customer's entity. Also, talking from the customer's POV the Government should set up subsidiary bodies dealing with the Fintech startups concerning underprivileged customers who are failing to repay their dues. Last year the Finance ministry took some of the beneficiary decisions including tax relief on ESOPs and the reduction on corporate tax to 22% which is the lowest in the world. We are seeking simplified GST rules to smoothen the process for both the customers' and the company's end".
Budget 2021 Expectations LIVE: Rajesh Mehra, Director & Promoter, Jaquar Group
"Revival Push is the key expectation from the Union Budget 2021. From an affordable housing perspective, corrective measures which ease out the liquidity challenges and improve home buying sentiments will be critical. Covid-19 has enforced changes such as - working from home, online education for the students, push towards touch-free consumer products - resulting in buyers looking for improved home buying options. This gives a much needed fillip to counter the gloom and doom home buying scenario especially in the Tier 1 and 2 markets. Relief for taxpayers/ reduced income tax rates will nurture the spur of demand in the housing sector this year. It will be beneficial to have a limited waiver on GST to aid the pricing burden on property owners. Additionally, the GST for sanitary ware and LED/smart lighting is marked at 18% and 12% respectively - a reduction will be conducive to improved demand and help with the adoption of better consumer habits to gratify the Government’s Vocal for Local , Swasth India and affordable housing for all by 2022 goals. From a manufacturing perspective, enhanced infrastructure spends, clearing of pending industry dies and a continued thrust on MGNREGA will generate employment opportunities. From an MNC perspective like ours, an extension on the Infrastructure for Exports Scheme and interest rate equalisation for all exporters will ensure more of Indian products find their way in international markets."
Budget 2021 Expectations LIVE: Dinesh Chhabra, CEO, Usha International
“The stakes, as well as the expectations, are high from the upcoming Union budget with all eyes on the government’s plans to revive the economy and counter the detrimental impact of the pandemic. While industries across the board fell prey to the impact of COVID-19 and the ensuing lockdown and restrictions, the consumer durable industry did revive post the lockdown relaxation, catering to pent-up demand first which sustained till the year-end due to evolving consumer needs for convenience and hygiene. However, the recent abnormal surge in the price of raw materials and freight costs cast a shadow on sales forecasts in the forthcoming summer months. We hope that the government will prioritise the measures necessary to control the cost inflation with liberal budget allocation focusing on strengthening the domestic manufacturing and component ecosystem this year. As digital adoption and transformation accelerates, increased allocation to improve internet infrastructure and connectivity to bridge the rural-urban divide across geographies will also induce strong consumer demand and stabilize growth patterns in future. We are hopeful of these initiatives from the government, which will help spur revival in demand and consumption, bringing cheer to both industry and consumers.”
Budget 2021 Expectations LIVE: Vimal Monga, VP- sales and leasing (commercial), TDI Infratech Ltd.
Real estate is the engine of Indian economy , many sectors are Associated with real estate industry like cement , steel, building material, paint , consumer durable
With boost to real estate sector all associated sectors will get boost also it will help in employment generation .Govt should consider reducing taxes on raw material for real estate as construction cost is getting higher. The sector also expects stamp duty reduction
along with GST reduction. Another demand will be expecting increase in deduction limit under SEC 80 C for home loan buyers, accompanied with tax benefit on interest paid for loan on under construction properties bought by home loan borrowers ; as currently it is on possession ready properties only.
Budget 2021 Expectations LIVE: Vijay Verma, CEO, Sunworld Group
Real estate sector has undergone a paradigm shift during the year of 2020 due to the lockdown, the dependency on technology integrations has increased. This has pushed the boundaries of investments and revenues coming to the sector. In order to give a firm support to the sector and its newly found status, the government ‘s policy announcements will play a detrimental role. Therefore, the expectations from upcoming budget remain on getting the sector an industry status, GST reduction to attract homebuyers, and single window clearance which has been a long standing demand from the industry players. If these regulations are passed, the sector is likely to benefit the large magnitude of related ancillaries.
Budget 2021 Expectations LIVE: Yogesh Makkar, CEO, Kapdec Inc
"The year 2020 had an insurmountable impact on the education systems and on learners. Despite a surge in online education, a vast majority of the student population remained at a disadvantage. At a macro level, a nation with more than 1.5 million schools, more than 280 million students, with over 65% of the student population in rural areas, and more than 50% of the student population in government schools, those specific groups had by far experienced the worst and negative impact. The reasons cited were the lack of quality resources and lack of schools' preparedness to face such unprecedented times. Much needed is special attention to divert a larger proportion of funds, schemes, government-backed programs to flow into the K-12 segment, supporting the school eco-system or the entrepreneurs supporting education. Our expectations from the budget remain focused on the following key aspects, the strengthen the basic infrastructure for the schools of a new era:-
Digital Infrastructure: Equip government-led schools with the access and affordability of high-speed internet and computers or tablet devices for lower-income groups. Investing in online education models can be a smarter way of increasing outreach to millions of students in a short period.
Government Policies: Much needed is the reduction of the unnecessary compliances to make it easier for innovators and entrepreneurs to establish businesses, helping grow the economy and education system. Including the reduction of taxes on educational services.
Funding: Supporting and helping 1.5 million schools is a task that requires strong input from ed-tech entrepreneurs, focusing more on the innovation in education delivery methods. However, often new start-ups are cash-striven, and help from government-backed funding programs will fuel the growth cycle."
Budget 2021 Expectations LIVE: Pradeep Aggarwal, Founder & Chairman – Signature Global Group & Chairman - ASSOCHAM National Council on Real Estate, Housing and Urban Development
• Income Tax holiday for Developers in Affordable Housing was given for 2020. After struggling with the pandemic situation for the entire year, it would be encouraging for developers to get this rebate for another 2 years.
• Banks should provide Project based (land & construction) funds at 6%.
• For first time homebuyers (in Affordable Housing) stamp duty exempt is required pan India.
• Technology import (like aluminum shuttering used in AFW) for construction of affordable housing from other countries should be free from custom duty.
• Stamp duty for land purchase in affordable housing should be reduced or removed for next few years to promote the launch of such homes. • GST on material and services used in affordable housing should be reduced to 50% or brought to single digit.
Budget 2021 Expectations LIVE: Achal Raina, COO, Raheja Developers
All through 2020, the government came up with slew of announcement and measures to streamline the sector and to provide liquidity solutions to the stuck projects; the sector now has high hopes from the upcoming budget. It is expected that the government will take last year’s thought and action forward to come up with the announcements that can be implemented in the short term. The first and foremost need is to see that the process of permissions get resolved through single window clearance, a demand that has been there for quite some time. Authorities responsible for giving permissions can also be brought under the ambit of RERA to make sure that the permissions do not take much time; this step can be an option if single-window clearance is not announced.
We all know that government is promoting Housing for All and for it to become a reality it is important to ease out the cost burden on real estate by controlling the cost of construction; the Budget must have an announcement regarding cost effective materials for the housing being developed under affordable housing.
Real estate sector needs support of the government wants every Indian to have a house. Escalating costs and delays are the biggest hurdles; government must step in through income tax incentives, to the developers, rightly priced land, availability of land in major cities for affordable housing, and so on. The list of expectations is endless because the goal is large – to provide houses to everyone in the budget that they can afford and still not compromise on the amenities or the deadlines given to the buyers.
Budget 2021 Expectations LIVE: Rajat Goel, JMD, MRG World
We hope that the FM will focus on the affordable housing segment, which has the highest demand. The segment saw a maximum number of launches and sales after the pandemic; people are eagerly waiting for more projects to come in this segment. With the Government’s focus on Housing for All, we are sure that the FM will ease the burden on common man also as they are the ones who need more liquidity to buy these projects. We hope that there will be necessary tax exemptions, stamp duty reductions, and increase in tax deduction under 80C that will help the common man to have more disposable income. From the developers’ point of view, we expect that the FM will give income tax holiday to developers working in this segment and reduce stamp duty for land purchase in affordable housing.
Budget 2021 Expectations LIVE: Vickram Kumar, Founder, Nino Bambino
"As a small business, our expectations from this budget are specifically towards the Government taking concrete measures to integrate technology and automation through AI, IOT, Robotics etc. in the apparel manufacturing segment, especially for the micro and small enterprises. Whether it comes through creating a pool of resources for consulting and awareness initiatives, adoption incentives or borrowing ease to make the huge capital costs realizable for small companies. This will surely give the MSME segment a major fillip to expand and compete internationally.
The second are that we feel the government could allocate a budget to strengthen something that could be huge in the coming years would be on B2C International E-commerce. Currently, b2b exports form a major part of the current exports out of India. B2C is minuscule. If there is clarity laws, push for international warehousing tie-ups or push for international last mile delivery at a competitive cost, systems for handling returns, customer grievances of individual customers internationally, similar to what China has done. Then a lot of small business will have big markets open to them to help them grow. This will also increase exposure towards improving the consumer experience and thereby becoming more competitive."
Budget 2021 Expectations LIVE: Nishit Jalan, CEO, Grovy India
"The year 2021 is expected to be the year of revival of the real estate sector. This year has started on a positive note and to maintain the momentum, the industry is expecting innovative and path-breaking announcements. This year’s budget needs to focus on bringing the cash flow back into the real estate industry by encouraging young and first-time home buyers, and investors. The budget needs to address the cash flow crunch in the industry and accede to the long-standing demand of granting industry status to the sector.
Further to reduce the burden on the homeowner, the stamp duty needs to be revised on a national level.
Changing the GST slab of sale of the under-construction property to nil rated GST, even for a limited period of time will go a long way in improving cash flow for under-construction properties. Providing income tax relief for home buyers on a second home will allow more people to invest in the sector and give a boost to holiday homes specifically."
Budget 2021 Expectations LIVE: Harsh Vardhan Didwania, Co-Founder and Director, EeVe India
"The electric two-wheeler market in India is emerging on account of increased government policies supporting battery-powered vehicles, the growing awareness toward the environment, increasing petrol prices, and stringent emission norms. The Government of India has taken several initiatives to boost the sale of electric vehicles (EV), including two-wheelers. In 2013, with the launch of the National Electric Mobility Mission Plan 2020. Similarly, in the Union budget 2019, the government had framed several policies and announced rebates on battery-powered vehicles. Hence, the remission to customers on interest to buy battery-powered vehicles has led to increasing in adoption and demand for battery-powered scooters and motorcycles, however higher cost of owning an EV is still a major bottleneck in its adoption along with GST on raw material and Custom Duty on EV related product and technology is still a major challenge for the manufacturers.
Measures that would augur well for the Ev industry in the upcoming budget would be to tackle the high GST cost of raw material and custom duty & encouraging the production of Lithium powered batteries in India which constitutes almost 40% cost of the vehicle. We also look forward to making retail finance available through Nationalised and Private Bank by including the EV in priority sector lending."
Budget 2021 Expectations LIVE: Kunal Kislay, Co-Founder, Integration Wizards Solution IRIS tech
The budget 2020-21 needs to focus on building a strong IT infrastructure. With the right policy push and resources, the budget can be a real game changer for the Indian technology Sector. We expect the tax filing cycle to increase and GST rebates. We hope that the Government will come up with schemes to help boost innovation and the economy. The upcoming budget should focus on integration of innovation across multiple sectors like manufacturing , retail, healthcare, etc.
2020 has been a tough year for MSMEs. While some succumbed under the pressure, many strived to make ends meet under heavy cash/resource crunch. To encourage MSMEs, the government should take cognizance of the high GST on professional services, and work towards decreasing it. In addition, since most MSMEs are either sole proprietorship or partnerships, it is imperative that taxes must be reduced on such businesses. A concessional fee for small service providers can be proposed. Due to a dramatic decline in public sector banks’ share in facilitating finances to the MSME sector, small businesses are often unable to get loans on time - which is another issue that we hope the forthcoming budget will resolve. Strengthening this sector must be the priority of the budget.
Budget 2021 Expectations LIVE: Vaibhav Lall, Founder, Khojdeal
COVID-19 has accelerated the adoption of Artificial Intelligence (AI) around the world. AI-enabled applications for facial recognition; contact tracing, diagnosis and other areas are the need of the hour. In India, companies have accelerated their innovations and investments in AI during the pandemic. We hope Budget 2021 addresses some of the key challenges related to AI adoption.
The Personal Data Protection (PDP) Bill, once passed is expected to affect all online businesses including e-commerce. It would pave the way for a stronger data security and privacy control framework and guidelines in India. We expect Budget 2021 to provide some clarity about the scope of the legislation and how it will impact e-com players so that we have adequate time to upgrade our existing data handling practices to comply to new ones.
The e-commerce retail logistics industry has grown at a brisk rate over the past few years. Amplified demand for same-day deliveries and the rise of new business models like omni-channel retailing & last-mile delivery through local retailers are shaping the ways the e-commerce retail supply chain functions. Some of the issues that confront the sector include high-cost pressures, high returns and inadequate physical infrastructure especially in Tier II, III and IV cities. Budget 2021 should address these issues to ensure seamless supply and delivery.
The pandemic has forced many offline businesses to set up shop online. Many Small & Medium Enterprises are looking to take advantage of the power of digital. However, the current compliance and taxation laws for setting up an e-commerce entity are too stringent especially for startups with limited resources. In line with the ease of doing business initiative, we expect Budget 2021 to bring about significant compliance and taxation reforms for such e-commerce players.
Budget 2021 Expectations LIVE: Pankaj Khanna, MD & Founder, Gem Selections, Khanna Gems Pvt. Ltd.
Thankfully the Indian economy is stabilizing itself after a major recession in 2020 and the aggregate demand is increasing. With the support of the government of India and RBI we expect major trader reforms in the current budget 2021. However, there is a contraction on gems and jewelry industry in the area of exports and tourist buying. Our tariffs and duties must be in-line with the international tariff systems and duties, so that we can well compete with the neighboring countries. If the tariffs and duties are reduced, we can surely be the global leaders in production and trading in gold, diamond, and other commodities in the coming years. Hence with the opening of trade and export this year, we are hopeful that the gems industry will see a boom. Also, with new tax laws we hope that there will be ease for the traders across the country.
Budget 2021 Expectations LIVE: Shabnum Khan, Founder, 750ad Healthcare Pvt. Ltd.
We anticipate that the Government of India shall tap into the public-private partnership model to provide the much-needed support and revamping in the primary healthcare infrastructure in the country. Along with this, we also expect that with the large amount of medical data being made available online, funds must be dedicated towards data protection and developing a secure infrastructure to prevent the misuse of this very crucial data available on the databases of several private and government hospitals. Additionally, we hope that Covid-19 vaccines will be made available free of cost to the citizens of the country, especially those below the poverty line. To add to this, India to develop as a promising market for generic drugs, it is important the new Budget outlines the need for conducive policies around this industry. We are expecting that the government will streamline regulations for pharmacies purchasing medications from GST paid channels.
Budget 2021 Expectations LIVE: Sagar N Mehta, Founder & Partner, Vegandukan
"New age companies and startups working on sustainability and welfare of human health, plant based protein, should be given a special recognition in taxation if we are looking at healthier and more competitive India in a decade to come.
There is a dire need for stimulus packages post the economic recession, brought about by the pandemic, in order to increase the customer demand of FMCG products including vegan food products. Additionally, the reduction in income tax will prove beneficial for the taxpayer consumer base which in turn will lead to improved sales in the retail market. We expect that the current budget will bring forward a ray of hope for the entire retail sector in terms of tax reforms, job creation and the development of a strong supply chain. We also expect greater allocation of funds for food processing policies and tax incentives for agricultural and food item exports."
Budget 2021 Expectations LIVE: Ankit Arora, Founding Director, Saarthi Education:
"Even though the absolute amount of expenditure on education has increased over the past few years, it has reduced in terms of percentage of GDP. It's important to see this metric as a percentage of the overall GDP as it shows how much/many resources is a country is ready to put into its future, its children's education. As Warren Buffet says - “Someone's sitting in the shade today because someone planted a tree a long time ago.” We need to invest the heavily in our children's education so that we can yield the "returns" when in 2030 India becomes house to the largest working force in the world. Failure to do so might lead to catastrophic results when our people who will be entering the workforce will not be employable.
As the NEP 2020 suggested, the target for Education expenditure is to reach 6% of the GDP. This might not be possible all of a sudden in just one year. However, the government can show its intent by moving in this direction of increased expenditure. With COVID 19 and the economic debacle it caused, the government might find it difficult to do so, but it is in these times that we have to adhere to a long term vision (which the NEP has set for us) and not take myopic decisions.
Children have suffered a lot of losses in their education in the last year. Failure to infuse more money into the sector will lead to further losses. Losses which we might not be able to recover for a very long time.
The added expenditure can be used to hire more teachers wherever there is a teacher capacity issue, build government school's capacity to conduct remote learning, build a cadre of parent volunteers (just like Asha Workers) who can mobilise the community and learning at home.”
Budget 2021 Expectations LIVE: Anuradha Prasad, Founder & CEO, India Leaders for Social Sector
“I think this budget is like no other. It comes at a time when the country has been fighting a pandemic. As a social sector organisation, we would want to see how this budget supports and further strengthens the social sector. The sector has been at the forefront throughout last year, helping the most vulnerable communities cope with an unprecedented situation- whether it was maintaining access to education, supporting livelihoods in the wake of massive unemployment and providing access to healthcare.
We would definitely want to see what the government has in mind for the social stock exchange. We would also want to see what measures the government can take incentivise funding to the social sector. Non-profits have operated under extremely difficult circumstances and still delivered. The Government should definitely think of ways to ensure the sector is more resilient going forward.
This year's budget will be announced amidst unprecedented circumstances, India in the aftermath of COVID - 19, no sector was spared from instability it brought along with it, having said that; this was also the year when the social sector was leading from the front in the time of this humanitarian crisis, with this context in mind this year's budget should have substantial provisions for providing support and acceleration to the sector along with 1) clarity on the Social Stock Exchange- Is it only for profit-making social enterprises or for nonprofits as well? How can organizations list themselves on the exchange? What would be the mechanisms of financial exchange? 2) Some financial stimulus to the sector in the form of incentivizing CSR and Individual donations through tax benefits would be a welcome step and would immensely help the sector, 3) FCRA amendments came as a sudden shock for the sector in the middle of the pandemic. To prevent such future shocks, the government could form a permanent committee comprising of representatives from the civil society and the government, enabling smooth coordination between the samaj and sarkar.”
Budget 2021 Expectations LIVE: Raghavan NS, Country Manager, Essilor South Asia region
"We hope for the budget to support the Optical industry in eradicating poor vision from our nation. To begin with, a reduction in Import duty on raw materials will give a boost to the local manufacturers. Meanwhile sharp and attractive export incentives to "make in India" will enable us to compete better. We also look forward to a reduction of personal income tax as this will increase the take-home salary and enable an increase in personal consumption thereby stimulating demand. In the case of the Healthcare sector, we hope for an upgrade of Government hospitals with more tax breaks for R&D and increased coverage of Ayushman Bharat. Also we look forward to Income tax deduction for CSR expenditure."
Budget 2021 Expectations LIVE: Dr. Akhil Shahani, Managing Director, Thadomal Shahani Centre for Management, Shahani Group and Ask.Careers
"Schools & colleges around India will need to revamp their education models to comply with the recently announced National Education Policy 2020. This will require additional government funding to enable this to happen. India spends only 4.6 per cent of its total GDP on education, and ranks 62nd in total public expenditure on education per student, according to IMD. Budget 2021 should allocate at least 6% of Indian GDP to the education sector, which is in line with recommendations by Niti Ayog.
Additionally, the changes envisaged by NEP 2020 cannot happen only with government funds. Private investment & FDI should be encouraged in mainstream education with an expectation of a reasonable return. The budget should also provide incentives for universities to conduct research & scholarships for student entrepreneurs who wish to create innovative products."
Budget 2021 Expectations LIVE: Gaurav Aggarwal, Founder, Savaari
"Due to the pent-up travel desire and a steep decline in COVID cases, people are now inclined towards leisure travel. The current travel pattern is determined by the distance of the destination from home as well as the various safety offerings during commute and stay. Which is why nearby, offbeat destinations that are accessible by short road trips are taking a precedence over popular tourist destinations. The advantages of these destinations are twofold - a boost to the local economy and reduced risk of infection as these destinations are lesser known and hence, less crowded. The Tourism Ministry's budgets have previously been slashed over the last few budgets to a meager 1500 crore. In order to spur domestic tourism and make India a world-class tourist destination, we expect that the budgetary allocation is at least increased by 50% in the upcoming budget."
Budget 2021 Expectations LIVE: Ved Krishna, Vice-Chairman, Yash Pakka ltd
‘Our Prime Minister has clarified his intent to make the country single-use plastic-free. The same needs to be put into action. There need to be effective bans on non-biodegradable packaging and impetus for compostable packaging. Funding needs to be provided for the development of alternates and taxation needs to be aligned for promotion of the same’
Budget 2021 Expectations LIVE: Anshuman Magazine, Chairman & CEO, India, South East Asia, Middle East & Africa, CBRE
“The dynamics of the RE sector and its stakeholders witnessed a significant impact due to the COVID-19 pandemic; however, we do believe that 2021 would pave the way for opportunity and recovery. Budget 2021 could go a long way towards meeting this goal by way of introducing tax reforms such as enhancing the principal deduction limit on home loans under Section 80C of the IT Act, 1961; lowering the long-term gains tax for sale of house property and rationalizing the GST for under-construction properties. The government could also consider increasing the corpus of SWAMIH fund to provide last-mile funding to residential projects as well as undertake deep restructuring of RE-related loans to smoothen the repayment process such as easing payback of redemption premiums. Enhanced focus on the RE sector would have a far-reaching multiplier effect on the economy as it has forward and backward linkages to over 250 ancillary industries.”
Budget 2021 Expectations LIVE: T Chitty Babu, Chairman and CEO, Akshaya Pvt Ltd
"Though the real estate sector has witnessed a slew of measures implemented in the last two years to boost consumer sentiment and provide relief to the developers, there are still certain areas that can be considered to improve the overall growth of the sector. Measures like single window clearance, uniformity in GST for different housing segments, ease of cash flow for better project executions, strengthening the banking infrastructure to aid the developers as well as the homebuyers can go a long way in creating sustained growth. Revision in income tax slabs can spur buyer sentiment which was marred by COVID-19. Areas like construction, labour crunch will also need redressal from the government, which will go a long way in getting the right impetus and boost private investments in the sector."
Budget 2021 Expectations LIVE: Ajay Lakhotia, Founder, StockGro
“Pandemic has given a unique window of opportunity to introduce radical changes in the Economic Policies. Tax reforms incentivizing increased investments in Government Bonds and with secure returns would be first on my cards. From Start-up ecosystem perspective, relief from direct and in-direct tax filing for at-least 2 years would help founders focus on business instead of compliances. Higher spend on Agri-Tech would help revive and survive a consumption driven economy.Overall, a budget for Financial Inclusion, especially promoting saving and investment across masses instead of classes is the call of current times”.
Budget 2021 Expectations LIVE: Raj Patel, Director, Royale Touche
“The government has taken a firm stand to make India a self-reliant country. The Atmanirbhar Bharat dream of PM Modi will make India play an important part of the global economy. I believe the upcoming budget will reflect this decision, and there will be a strong push from the government’s side to invest heavily in the manufacturing sectors. Hence, the ease of doing business and making Indian business competitive on a global scale should be the priority. India is poised to capture a significant pie of the market with the appropriate push from the government to incentivise exports and the manufacturing sector."
“Post the pandemic the real estate sector has seen relatively better growth and if the economy bounces back, then it will definitely be a boost for the sector. Also the PM’s dream Pradhan Mantri Awas Yojana (PMAY) to provide affordable housing to all the citizens of India will remain a significant driver for the segment in the upcoming budget.”
Budget 2021 Expectations LIVE: Nevil Patel, Director-Orpat Group
"We hope this time the Government to come forward and levy 100 percent custom duty on finish products exported from other countries to support the local manufacturers. This will improve the production infrastructure and create employment opportunities. If the government announces these measures, it will be a good start for the year and it will also boost the morale of companies like us to step up our game in achieving the dream of a self-reliant India. By increasing import duties, it will strengthen the position of domestic products in local markets."
Budget 2021 Expectations LIVE:Vimal Singh, Founder & CEO-ReadyAssist
“India should heavily invest on our youths in building the right talents. Road safety must be brought to main stream with allocation of funds for awareness, setting up emergency response ecosystems and improving the highway safety and infrastructures. Domestic tourism should be empowered, housewives should be encouraged and incentivised to become brand ambassadors of local tourism. Riders and the bloggers/vloggers communities should be recognised as they play a large part in our local tourism”.
Budget 2021 Expectations LIVE: Dharmendra Ahuja, Founder & CEO, PitchWorx
Due to pandemic, the year 2020 has been a big year for all of us. It has drastically ravaged economies across the globe wherein MSMEs have borne the maximum brunt. While some had to shut their businesses, several organizations reduced employment and have elected to cut the pay of their employees or furloughs in order to keep the business afloat. Despite the continuous innovation, several start-ups failed due to funding crunch, tax burden, rigid compliances, and poor technological development. To cope up with this, budget 2021 should focus on enabling the development of MSMEs by providing them access to easy credit, reducing income tax rate & GST tax rate, and offering rebates to MSMEs willing to adopt new technologies.
During the pandemic, we have seen a boom in digital adoption where MSMEs are contributing the most. In the union budget 2021, it is for the government to ensure that the right thrust is given to build a robust tech ecosystem with favourable tax policies and upskilling or reskilling the workforce in the segment to pave the way towards the strong economic growth.
Budget 2021 Expectations LIVE: Tushar Aggarwal, Founder Partner, Tattvam Advisors
The lack of guidelines on the implementation of anti-profiteering provisions and interference of the authorities in price determination has become a challenge for the industry. There is a high need to abolish these anti-profiteering provisions and the market forces should be let to determine the prices.
To boost the hard-hit sectors like tours and travel, hospitality, etc. GST rate should be decreased until normalcy is achieved. Moreover, to better the cash flows of businesses especially the MSME and real estate sector, relaxation for payment of GST on a receipt basis would be a welcome step.
Several taxpayer-friendly amendments like GST relief in case of bad debts and relaxation in the ineligible list of input tax credit are much needed by the industry during the ongoing Covid times.
Budget 2021 Expectations LIVE: Pitam Goel, Founder Partner, VPTP & Co.
The government’s measures to curb the pandemic has critically drained its finances in 2020. A Covid cess is expected to be levied on high-income individuals. A definitive decision whether this levy will be in the form of cess or surcharge will be taken closer to the budget date. Though no big-ticket reforms are likely to happen this year but it is expected that the govt may introduce minor tweaks to help the tax-payer.
Higher deduction in taxable income can be expected on account of increased health expenses during the pandemic. Some relief in the form of tax benefit under Section 80D of the Income Tax Act is expected.
It is also anticipated the government might increase the Long term capital gain on the sale of shares and equity-oriented mutual funds. Currently, MSMEs receive funding assistance under the Credit Guarantee Fund for Micro and SmalI Enterprise Scheme of the central government wherein they receive a collateral-free credit. Several MSME bodies are expecting that the collateral-free loan limit should be enhanced by the government to 5Cr. for micro-units, Rs. 15 Cr. for small businesses, and 35 Cr. for medium businesses. Also, a tax incentive to boost the adoption of technology in the MSME sector is much anticipated.
Budget 2021 Expectations LIVE: Rohit Warrier, CEO and Founder, Warrier Safe Shields
To get the economy kicking, one key thing the govt needs to do is encourage spending, one way to do that could be rolling back the LTCG tax. Another segment that has been hit big time by the pandemic has been the travel & hospitality segment. Government could consider extending MSME working capital loans, to this sector to help job restoration. Waiver or normalization of the Liquor license fee of hotels on pro rata basis for the time the hotels were shut and not allowed to operate in previous year will certainly help the hoteliers to tide over the tough times.
In the hospitality sector, many of its members are on the verge of going bust, relaxation of interest on loans and moratorium on loan repayment is the need of the hour. A dedicated stimulus package for the distressed hospitality sector is a must.
PM’s call for visiting 22 domestic tourist destinations by 2022 is encouraging, however, it has to be backed up by supporting the backbone of travel and tourism, which is Hotels.
Another area that could do with improvement is Income tax filing process. That needs to be, simplified if possible, arrive at a single form for everyone, this would encourage more people to file in their returns. One of the reasons that only 1.5% of the population pay tax is because of the complexity procedure of filing a return. I believe a simple form involving just 4-5 steps will widen the base and increase collection.
Budget 2021 Expectations LIVE: Raman Gupta, Director, Branding & Construction, GBP
We are looking at the upcoming Budget with great expectations as it might turn out to be a day when profound policy decisions can be announced to smoothen the functioning of the real estate sector.This year’s budget is going to be laying the roadmap for developments as per the prevalent new normal. Real estate being the second largest employer in the country is currently undergoing a sensitive time, as buyers are interested, developers want to deliver timely but some policies needs quick addressal to give timely possession of the properties to their customers. Single window clearance, issues related to Input Tax Credit being some prominent ones. The construction raw materials have reported a spike in their prices due to the disrupted supply chain, which if subsidized will resolve multiple roadblocks for construction and real estate industries
Budget 2021 Expectations LIVE: Karan Chopra, Founder of Hospido.in and co-founder of Doctor on call.
"There is very high expectation from budget for healthcare startups especially in a country like India where digital health can truly provide care to areas with short supply of doctors.
1. Healthcare platforms connecting patients to doctors have to pay GST on their revenues, whereas broader healthcare services are exempt under GST. Such platforms should also be exempted from GST.
2. Subsidies and lower taxation for healthtech players can also promote innovation in the sector and open access to a lot of people
3. One nation one medical record policy where we digitise medical records of the entire population. Govt. will have to bring in payers, providers, doctors together to implement this."
Budget 2021 Expectations LIVE: Ravi Saxena MD Wonderchef
"Leaving behind all the negativity and apprehensions, everyone is starting fresh and looking up to the Budget 2021 with much optimism.The industry is eagerly waiting for the government to introduce National Retail Policy and streamline the compliance mechanism to facilitate business expansion. Also, we are expecting an increase in the FDI inflow which would help organized players to expand presence as well as have access to the best manufacturing practices and stimulate the Make in India initiative.
The rising input cost needs a strong consideration in this budget so that the end consumer doesn't have to face the dual setback of Covid-led financial strain and price rise.
Budget 2021 Expectations LIVE: Rohit Gajbhiye, Founder Financepeer
“The stakeholders are eyeing the Budget 2021 with a lot of expectations as the government has already signalled allocation of 6% of the GDP towards education. This can be a healthy start towards strengthening the sector. Aligning with it, we expect the government to introduce a framework for formalizing the online education coupling it with exhaustive provisions for bridging the digital divide between both ends of the education value chain i.e. the Teachers and the Students. Also, the reducing gaps in quality of education between rural and urban areas has to be on the priority list and technology is pivotal for that. We are also expecting the government to lay the ground for a gradual increase in the annual budget of education to 10% of GDP to create an ecosystem for a vigorous research and development infrastructure in the education sector. "
Budget 2021 Expectations LIVE: Pradeep Misra, CMD-REPL, Rudrabhishek Enterprises Ltd
Real Estate sector is heavily driven by government policy and availability of investible surplus income in the hands of common people. Some of the long pending policy expectations include grant of industry status; ease GST regulations; increase tax incentives to buyers; easy finance for the sector and single window clearance.
Direct measures to address liquidity crisis may include FDI in rental housing, and ECB permissions in all real estate projects. Additionally, it may also make provisions for direct infusion of funds in the sector through existing channels like SWAMIH funds. Also another fund as SWAMIH funds-II should be launched which should be state centric and where in state institutions can contribute 50% of capital. This should have the regional offices in respective states to fund only to projects in Tier 2 & 3 cities which are untouched till date, under current fund.
Infrastructure sector is looking for more spending from the government side, as India is going to host the G20 summit in 2023. New flagship programs for urban infrastructure, transportation, tourism, rural employment etc. may be announced.
Infrastructure and Real Estate sector have a great growth association for generating employment, creating entrepreneurs and supporting allied industries. Union Budget should ensure adequate allocations for quicker economic turnaround and consolidating India’s position as a world class economy.
Budget 2021 Expectations LIVE: Vishal Gupta, Co Founder Brands2Life
The startups and MSMEs are looking for some measures to improve the credit facilities and accessibility of funds that can mobilize the growth and further support the sector to revive from Covid. Also, the Production Linked Incentive (PLI) scheme needs a stronger framework that will further strengthen the Atma Nirbhar Bharat initiative. As technology led developments are taking place at a faster pace the MSMEs sector needs more encouragement from the government for its adoption. More Entrepreneurship and Incubation programs should be considered in the priority list of the budget that may create Silicon valleys in India. 2021 is the time when the entire world is adopting new SOPs and this budget should set the launchpad for making India the global leader in this decade.
Budget 2021 Expectations LIVE: Anand Agarwal, Group CEO, STL
"The Indian government’s Digital India programme has transformed the nation into a ‘connected knowledge’ economy. With the second-largest internet user base (700 million), 2021 presents us with the unique opportunity to establish India as a global powerhouse of Digital Growth and realise the vision of a $5tn economy by 2025.
Developed economies (with >$5tn GDP) spend ~1.2% of their GDP for digital infra build. In the upcoming Union Budget 2021, we expect a roadmap for investments to the tune of ~2% of GDP, as against 0.5% earlier, for building the next-gen digital infrastructure. Our government must allocate a dedicated and non-lapsable budget for network build and modernisation to improve our global positioning on network readiness index.
Now is the time to innovate and build indigenously and become Atmanirbhar. Extension of the PLI scheme to existing businesses will boost the overall digital landscape of the country."
Budget 2021 Expectations LIVE: Dhruv Agarwala, Group CEO, Housing.com, Makaan.com, and Proptiger.com
The year 2020 witnessed the emergence of Shadow Cities i.e. Tier II and Tier III cities, with many people returning to their home towns because of the COVID-19 pandemic. We expect the government to come up with schemes to boost the real estate market in such cities, which is also required to meeting the target of Housing for All by 2022.
The real estate sector is also looking for the re-introduction of input tax credit for GST. Additionally, the sector would receive a big impetus if stamp duty and registration charges are subsumed within the GST and income tax exemption limit for home buyers in raised. These initiatives will help in sustain the improvement in sentiments which was witnessed in the last three months of 2020. The sector also looks forward to CLSS budgetary support for the EWS/ LIG as well as the MIG segment.
The liquidity crunch being faced by the real estate sector needs to be resolved immediately. Although the government has announced the Rs 25,000 crore AIF for stuck projects, the deployment of these funds has been slow. It's important to expedite the scheme. Currently, banks are hesitant to extend funding support to developers. The government needs to work out a mechanism to enable developers to receive funding from banks as it is crucial for completing the pending projects. The government also needs to consider reintroduction of the subvention scheme.
The single window clearance for projects is a long pending demand of the real estate sector. This issue affects the delivery timelines of projects. Authorities should also be brought under the purview of RERA since delays on their part in granting permissions impacts project completion and delivery, thereby causing major financial losses for builders and heartburn among home buyers.
Rationalisation of raw material prices is a must if the real estate sector which has to play a pivotal role in ensuring Housing for All by 2022. Increasing cement and steel prices has been a sore point for the sector, which has been seeking government intervention in managing the prices of construction raw materials.
As part of the Atmanirbhar 3.0 initiative, the government increased the differential from 10 per cent to 20 per cent under Section 43CA of the Income Tax Act on sale of residential units valued at up to Rs 2 crore, which is welcome. The home buyers will be entitled for relief of up to 20 per cent under Section 56(2)(x) of the Act. We expect the government to raise the cut off limit and extend the concession to luxury segment as well.
Budget 2021 Expectations LIVE: Ankit Kansal, Co-Founder & MD, 360 Realtors
There is a huge expectation from the Budget, as the industry is looking forward to the government to take more proactive steps to infuse liquidity and incentivize home sales through policy impetus. As a part of liquidity building steps, the industry will expect that the government will take proactive steps to fund developers and offer impetus to stressed and stuck-up projects. Better leverage for developers can help in bridging a crucial gap in the current market.Similarly, the government should give further income tax deduction on home loans. On the policy front, the government needs to think of reducing stamp duty. Already in Maharashtra, the rate has been reduced to 2% from 5% last year, which has resulted in accelerated sales. Similar prudent policies should be thought of for other states.
Budget 2021 Expectations LIVE: Suhas Rajkumar, Founder, Simple Energy.
"The year 2020 was a never-seen-before scenario. We did see the GDP contract as the whole world was at a pause. Amidst the pandemic, a lot is expected from the Government in terms of the support they can give to the auto industry. EV manufacturers would certainly hope for few policy changes, ease of finance, and reduction of GST slabs from the upcoming Union Budget. These costs eventually increase the cost of manufacturing and of owning the EV, which again slows down its adaption. Undoubtedly, the government has shown its support with various initiatives to boost the usage and adaption of EV like the National Electric Mobility Mission plan 2020, capital subsidies under FAME, etc to name a few, and we're expecting them to take more supportive steps on the policy framework which will help the EV sector in long term."
Budget 2021 Expectations LIVE: Kushagr Ansal,Director, Ansal Housing Limited and President, CREDAI - Haryana
The realtors community is having high expectations from Union budget this year. To begin with, the Government should continue to focus on infrastructure development in tier II-III cities, their connectivity with major urban centres will have a huge impact on elevating their industrial status and be a determining factor for price appreciation. These cities have potential and abundance in resources to be the next urban centres. Along with this, we also expect the long-awaited industry status to be given to the real estate sector as this will greatly impact all the associated stakeholders and the massive group of construction workers employed. Results of stamp duty reduction have been tremendous on sales in Maharashtra market, similar kind of incentives must be passed on to other states as well.
Budget 2021 Expectations LIVE: Amit Modi, Director, ABA Corp & President (Elect), CREDAI Western UP
The real estate sector in India has been through one of the most difficult periods last year due the pandemic effected slowdown in the economy, and while there was an upward trajectory in the last quarter of year 2020, due to correction in prices, availability of affordable Home Loans and the general realization towards the importance of having an adequate shelter during the pandemic, but to seriously start the process of sector revival, there is an urgent and definitive need for reforms from the forthcoming Budget
a: Single Window Clearance: At present the multiplicity of permissions and approvals that developers are required to secure and the lack of single window clearance, it could take anywhere from 12 months to 36 months before beginning any project. Single window clearances as envisaged won’t just cut down the project delay but significantly impact the construction costs.
b: Exemption limit on Interest on Home loan: To support millions of first time buyers across the nation, the industry body The Federation of Indian Chambers of Commerce and Industry (FICCI) had recommended the Central government to either remove the limit for deduction of interest on housing loan under Section 24(b) or increase it from Rs 200,000 to Rs 10,000,000.
c: Principal Deduction Rules Under Section 80 C: Once again we are aligned with FICCI recommendations on the subject matter that the deduction of principal amount of housing loan repaid should not be clubbed with other deductions under Section 80C. It said that the deduction should be allowed as a deduction separately over and above the limit of Rs 1,50,000 under Section 80 C. Alternatively, the limit under Section 80C should be increased to Rs 3 lakh, is what the industry body had suggested and we are completely aligned with the recommendations.
d: Industry Status to Real Estate Sector: Allotment of “industry status” to real estate sector has been a long standing demand of the real estate players. Not having an ‘industry status’ becomes difficult for real estate sector to avail legitimate finances from Banks and other financial institutions. Industry status can help in getting low cost loans from the system, and then the cost benefit with regard to high interest loans from outside the system can be further moved on to the consumers.
e: Introduction of Input Credits in GST: We truly believe that the input credit regime should be brought back into the GST regime as far as the Residential Housing sector is concerned, with all the benifits being passed on to the Homebuyers, this is not only help in making the homebuying process affordable, but also shield the both buyers and developers from the cost implications of fluctuating cost of raw materials.
f: Reduction in Stamp Duty: Even though its not a subject that comes under purview of Central Government, but a recent reduction in Stamp Duty cost in Mumbai has not only helped to convert pent-up demand in the mid-income and affordable segments, but the also prompted the conclusion of several large-ticket transactions in the metro.
Budget 2021 Expectations LIVE: Mohit Goel, CEO, Omaxe Limited
The Union Budget 2021-22 will play a pivotal role in sustaining the revival process of the Indian economy which witnessed one of the worst economic slowdowns in 2020 due to the COVID-19 pandemic.
The government must accelerate investment in infrastructure development in State Capitals and tier 2/3 cities so that these cities can emerge as the alternative centres for business and employment. India’s urban population is expected to grow to 590 million by 2030 and massive effort and investment in urban rejuvenation will be needed including from the private sector. The government must encourage private sector investment in these cities by opening avenues and providing tax breaks and incentivise in areas like real estate, IT, BPOs, retail, banks etc. Metro Rail, expressways, multi-land use projects, integrated townships, commercial and residential redevelopments are some of the areas the government must look towards.
The government and RBI’s efforts have led to some uptick in home sales and overall consumer spending. Increasing tax exemptions on the back of low interest rates and bottomed out property prices could propel demand for homes further.
Budget 2021 Expectations LIVE: Abhishek Bansal, Executive Director, Pacific Group of Malls
The FM will be under pressure to address all aspects of life to ensure healthy economic growth. We hope that the Budget will help people to have more buying power by increasing their disposable incomes. The retail segment is looking at measures that could ease out the tax burden on people. Retail activity is one of the crucial aspects of the economy, and the segment would be eagerly waiting to hear about sops that could help it overcome the challenging times of the pandemic.
Budget 2021 Expectations LIVE: Aditya Chamaria, Managing Director, Damodar Ropeways & Infra Limited
Ropeways are at an important intersection of the infrastructure and tourism industries and are also environment friendly. In the present times, a lot of State Governments are considering utilizing cable cars for urban transportation as they are eco-friendly, pollution-free and can be put up at very competitive prices by experienced companies like us. We expect and hope that the Government realizes the full potential of ropeways to boost tourism and enhance connectivity in this Union budget 2021-22.
GST on ropeways currently is at 18%, that is higher than that on air travel, which is at 12%. In fact, ropeways should be treated at least at par with Railways where the GST is 5% with input tax credit at a minimum because they cater to all sections of society. Even this tax reduction will go a long way in boosting the industry. Also, ease of doing business needs to increase in the building and maintenance of ropeways. There is a great volume of licenses, permits and general bureaucracy that needs to be navigated in order for a ropeway project to actually materialize. Moreover ropeways are usually made in places which are not accessible by other modes of transport, and are also able to maintain the general landscape of the space. Therefore, subsidies to the extent of 30 – 40% should be given in order to bolster this necessary industry.
Budget 2021 Expectations LIVE: Dr. Ajay Data, Founder and CEO, VideoMeet
The Union Budget 2021-22 is going to play a crucial role for the startup industries, as India being a developing nation has undergone massive changes during the pandemic year. There has been a tremendous growth in indigenous startups and apps as the products and services proposed come not only with great potential, but also provide high utility value as per the changed lifestyle due to the prevalent WFH trend. The support from government has to come in terms of making the access to capital and incubation easier. The series of terms and conditions, documentation, must be planned and established in such a manner that they do not come across as an obstacle but rather accelerate the functions of these new-age businesses. Additionally, the organizations which have decided to completely go online, must also be given a special consideration, as they will be in need of working capital throughout their journey to be at par with traditionally established players.Our honourable PM has been heralding the message of 'Vocal for Local' . I would expect govt. to give preferences for local products and services in procurement processes.An independent association for Indian startups, that comprises industry players must also be encouraged to bridge the communication gap between government authorities and budding entrepreneurs.
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