FM’s measures to boost economy will improve sentiment & business outlook: Industry leaders

While some industry heads said the announcements come at a right time, others say they will make a big difference to the advertising sector and start-up community

by exchange4media Staff
Published - Aug 26, 2019 8:16 AM Updated: Aug 26, 2019 4:21 PM

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economy

Corporate and industry bodies have been upbeat about Union Finance and Corporate Affairs Minister Nirmala Sitharaman’s announcement of measures to boost the Indian economy.

We spoke to industry leaders for their responses to the announcement. For most, the timing of the announcement is bound to make a big difference.

Elaborating on what works best for the economy, Vikas Khanchandani, CEO, Republic TV said: “The Finance Minister has addressed various critical concerns ailing the economy and the sentiments. The withdrawal of surcharge on FPI and domestic investors will have a positive impact on investments in the market, the extension of registration of BS IV vehicles and increased depreciation benefits should help with better uptick in automobile purchase. She has tried to address the issue of the flow of money into the business and to help improve purchasing capacity of consumers that was challenged.”

Khanchandani futher said: “She has also addressed the concerns raised by business houses on GST and tried to reduce any unwarranted challenges with Income Tax by creating a centralized digital platform. All these measures should help improve sentiment and business outlook. The advertising business is a direct reflection of business environment and opportunities that advertisers leverage with growing economies. There will be an uptick in investment by categories as the Finance Minister operationalises these measures and comes back with more.”

Alongside moves for specific sectors such as banks, housing, infrastructure and others, Sitharaman in her speech said the Ministry of Finance would continue to engage with stakeholders for timely and suitable interventions for different sectors.

“The recently announced stimulus by the finance minister is a very welcome step and we think it will help uplift sentiment, especially in the Auto and NBFC sectors. These are core sectors for the advertising industry - any positive move for them is welcome and will be good for the advertising industry in general,” said Rubeena Singh, CEO, iProspect India.

According to Pawan Jailkhani, Chief Revenue Officer, 9X Media, the announcement has come at a right time on account of the upcoming festive season. “Luckily, the Finance Minister has made the announcements at the right time because the festive season is upon us. The liquidity issue will be addressed, they will pump in more money into banks, and they are taking measures for the automobile sector. This will genuinely up the sentiments of a consumer. What is more important is that the measures announced will sentimentally boost us as an industry. When sentiments are good, people tend to spend more.”

Jitendra Chaturvedi, Director and Co-Founder, Batooni said the start-up community has welcomed the announcement to drop the angel tax and simplification of the tax filing process. “We welcome the Finance Minister’s announcement that angel tax will be dropped. This news has brought a huge relief among the start-up community. Also, measures such as a simpler tax-filing process, easier regulation on digital banking and digitization of transactions will boost growth of the Indian start-up ecosystem. Additionally, the government having begun simplifying the tax-filing process for start-ups along with the announcement of tax rebates for investors will encourage them to further invest in start-ups. All these initiatives will help in enhancing the start-up ecosystem in India and we hope the economy turns a corner very soon.”

Shashank Dixit, Founder & CEO at Deskera said, “With India having more than 50 million SMEs today, the announcement by the finance minister seems very promising in terms of further augmenting growth and development. The government's measure for GST refunds to be paid back to the industry within 60 days from the date of application will potentially change the SME game.”

Dixit further said, “Better credit flow to MSMEs and online tracking of loan applications will help them improve the turnaround time for customers. All these steps will further enable businesses to boost their overall productivity while providing them an opportunity to innovate and grow. I believe that to achieve India's target of becoming a USD 5 trillion economy by 2025, we have to strengthen our SME segment. Along with the government, we too have been at the forefront of helping SMEs become digitally advanced. The initiatives announced by the finance minister today will give a strong boost to the Indian economy."

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