This year’s Union budget is game changing and progressive. Demonetization is leading Indian to shift towards a Digital India. The cashback scheme and referral bonus to promote the usage of BHIM app will make citizens more comfortable with mobile wallets. This is extremely encouraging for company operating in internet space like us because no of Indians coming online will increase exponentially. Our country is becoming the victim of hackers, the proposal of a dedicated Computer Emergency Response Team (CERT) for the financial sector is a beneficial move as it would help in keeping transactions safe and secure. Moreover, the extension of tax holiday from existing 5 years to 7 years will cheer up the start-up ecosystem. We wish the finance minister a great luck to implement all the progressive reforms.
A game changing and progressive budget, focused on growth
This year’s budget has ramped up the country’s move towards Digital India. The impact on growth from the government’s cash crackdown is wearing off. Demonetisation was “a bold and decisive measure”, which will lead to higher GDP and higher tax revenues. Union Budget has rightly addressed the Digital economy and will help the country in cleaning up the system, will energise private investment through low cost credit, and benefit the common man.
Digital India promoting mobile payment
In terms of mobile payment, our country will be benefitted as our Government will introduce cashback scheme and referral bonus scheme to promote the usage of BHIM app. 125 lakhs people are already using it and the usage will increase further. This is extremely encouraging for company operating in internet space like us because no of Indians coming online will increase exponentially. In 2017-18, high speed broadband connectivity will be available in more than 1 lakh villages which will impact and help the rural people to shift towards Digital India. The allocation of INR 10000 crore for the Bharat Net Project is a move in a right direction. With this allocation for the Bharat Net project the optical fibre cables will now be increased to cover over 1.50 lakh gram panchayats from over 75,700 lakh currently.
Enhanced focus on security of finance sector
Our Finance Minister has specially addressed the issue of cyber security and security of the finance sector. The proposal of a dedicated Computer Emergency Response Team (CERT) for the financial sector is a beneficial move. The CERT team, which is a team of computer experts and computer scientists to help secure government’s online presence, will work closely with regulators such as SEBI and RBI to further boost the move towards digitization. It is expected that this will allow finance technology companies more opportunities in the financial sector. With the rise of hackers’ privacy is important if team will work closely with financial regulator flow of transaction will be safe and secure.
Great Boost for the Startup Ecosystem
The 3 year tax holiday available to start-ups has been extended from the existing period of first 5 years to 7 years. This is a welcome move as the initial gestation period of start-ups is generally long. Also, tax rate for companies with an annual turnover up to 50 crores has be reduced to 25%, to strengthen MSME sector. These announcements will cheer up the startup ecosystem which has seen a challenging year.
@Technuter.com News Service