Budget A Calculated Move Says Diksha Ohri

Diksha Ohri
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Is this going to promote cashless economy?

According to me, it’s been a Calculated Start up friendly budget so far starting from Tax benefits to carry forward for MAT till 15 years.


The budget missed direct announcements for E commerce sector when By 2020, Indian E commerce market is estimated to be $119 billion. India will have almost 320 million online shoppers by 2020 compared with 50 million in 2015.

It does lack clarity on GST, and Section 56, 68, and 115 of the Income Tax, Angel tax. and few policies for Ecommerce sector.

At the same time some key features like restrictions for cash payments above 3 lacs, Tax exemptions, and liberalization in FDI Policy are definitely beneficial.

In midst of Demonetization, we are moving towards an era of ‘Digital Economy’, I feel that the Budget has opened up some new dimensions. It’s positively affecting Consumer Businesses, Rural Sector and SME’s.

HERBUDGET: Women and the India budget HERBUDGET: Women and the India budget

Key announcements I like and can be useful for the economy as a whole include the following:


Trade & Consumer based Business would benefit from Reduction in Tax rate by 5% with turnover of up to 50 cr. leading to increase in profitability. It will help in savings that can be utilized by the company at a later stage. I look at it as Buffer Fund for any start up.

Ease of taxes would increase personal disposable income for Middle class individuals earning up to 2.5- 5 lakh thus increase their purchasing power. This is going to impact the purchasing behavior of the consumer at a deeper level. It may take a little time for consumers to fit into the new way of spending and saving. Match this with a complete Digital Economy; Nation is moving towards, I think consumers will have more power. It’s a plus for all industries.

As a Developing Country, Rural Sector has often been on sidelines, With the surge of Demonetization, Rural- Agri sector is adopting the idea of a cashless economy and with this new fund being allocated to the Rural sector, it clearly shows Government is focused on revamping the infrastructure, due to which consumption in Rural areas will definitely go up, the sector will definitely see higher Digital penetration and as an Ecommerce Player, I feel this is boon in terms of reach & scalability.

Government believes that the major drivers are SME’s and it’s a relief to see the Reduction of income tax by 5%, from 30% to 25% for them.

Overall, I believe that Budget 2017 has laid a foundation for the Indian Economy. As anticipated, the focus areas have been kept in mind like SME’s, Rural India and digitization.

Payments Regulatory body is a great initiative, the implementation of which if done correctly.

Views and content presented is the author's own

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