Cornitos MD feels Budget 2021 will make India digital-first nation; Diacolor boss says very marginal effect on jewellery industry

Finance Minister Nirnala Sitharaman's third Budget, presented last week, saw Health, Human capital, Innovation and R&D, and Physical infrastructure as its main pillars.

The first paperless Budget, that came after a year of the economy and employment being devastated by the pandemic, focused on reviving the country and heading towards PM Narendra Modi's AatmaNirbhar Bharat vision. It was widely lauded by India Inc and experts across spectrums.

A week on, here's looking at how bosses rank the Budget.


Vikram Agarwal, Managing Director, Cornitos
“The Union Budget 2021-22 is a move towards making India a digital-first nation. It has paved the way for growth mainly in healthcare, infrastructure and agriculture by providing more capital in these sectors.

"The enhanced capital expenditure particularly on infrastructure will create livelihoods, and support announced for the rural economy and farm sector will be a big boost for wealth creation in the non-urban markets. The Government's AatmaNirbhar Bharat campaign will boost the confidence of Indian brands like ours.”

Rishabh Tongya, Creative Director, Diacolor
"We welcome this Budget which is focused on re-setting the economy and building an India growth story. The Government's many moves towards building liquidity in the market through varies infrastructure projects and no hikes in taxation and balanced loan rates will not just create employment but also create a stable economy which re-instills customers' confidence to spend more.

"The luxury gem and jewellery industry however remains marginally affected. Gold and silver presently attract a basic customs duty of 12.5%. Since the duty was raised from 10% in July 2019, prices of precious metals have risen sharply. To bring it closer to previous levels, the government has proposed to rationalise custom duty on gold and silver and bring it down by 1.75% which is a very marginal percentage and thus the effect on the jewellery industry wouldn’t be huge. It’s more or less status quo."

Nawal Agrawal, Partner, Birdhichand Ghanshyamdas Jaipur

"With trade deficits being at a maximum due to the ongoing pandemic, the decrease in import/custom duty from 12.5% to approx.10.8% (including agriculture, CES and other levies ) will aid overall growth of the sector and in return boost the economy.

"India being one of the largest gold consumers in the world, the decision of a designated gold exchange under SEBI's watch will create transparency in gold transactions. We're positive with new reforms put in place, liquidity in the market will gradually increase and both consumers and manufacturers will benefit."

Ankush Kaul, President - Sales & Marketing, Ambience Group
"The increased focus of the Union Budget on infrastructure growth and capital expenditure will impact the overall growth of the real estate sector. Good infrastructure can propel the development of real estate, both commercial and housing, along the transit corridors, highways and newly proposed airports."

Anurakt Jain, Co-founder and CEO, Klub
“The decision to introduce a bill to set up development financial institutions with a sizable outlay of Rs 20,000 crore is a great initiative to ensure increased access of credit to MSMEs. Along with the Rs 1,500 cr scheme to promote digital transactions, we believe these initiatives will be true enablers for local businesses with an increased manufacturing capacity and a robust digital payment".

Chandrasekar Kandasamy, Managing Partner, Stakeboat Capital
“This year’s Budget is particularly aimed at providing the much-needed post-pandemic boost to the MSMEs and start-ups. Some great announcements which we highly appreciate include tax incentives for start-ups, including an extension for claiming tax holiday for start-ups by one more year - till March 31, 2022. The allocation of Rs 15,700 crores to SMEs, incorporation of one-person companies and the Rs 1,500-crore scheme to boost digital payments are all welcome moves aimed at promoting a start-up ecosystem in the country. We hope that these policies are implemented and brought into action at the earliest to create a better operating and enabling environment for MSMEs and start-ups.”

Raman Roy and Saurabh Srivastava, co-founders, Indian Angel Network
"The Budget's high focus on the Covid-19 vaccine will enable India to get back on its feet quickly. The announcement of pneumococcal vaccine rollout in more than 5 states will impact the health care system towards a healthier Atmanirbhar Bharat. The additional budget for urban health and wellness centres will provide the necessary boost.

The focus on health, hygiene, clean air, water will need innovative solutions, thus providing great opportunity for start-ups. The emphasis on digital transactions will also enable start-ups to create unique solutions for AatmaNirbhar India.

The One Nation- One Ration vision is an aspirational project benefitting 86% beneficiaries. Incentivising digital payments will help fintech players."

Ajai Chowdhary, Founder HCL, Board member IAN & IC member IAN Fund
The budget allocated for the agricultural sector will lead to infrastructural development and create opportunities for start-ups in the sector leading towards the self-reliant India vision."

Padmaja Ruparel, Founding Partner of IAN Fund
"The Budget 2021 opens up opportunities for start-ups across health, hygiene, water, clean air and sanitation. The vision of AatmaNirbhar Bharat with a focus on good governance and women empowerment will lead to a boost for Indian Economy. Indian start-ups have a great opportunity to innovate and help to sustain the Indian economy."

Soumya Kapoor Mehta, Head, Initiative for What Works to Advance Women and Girls in the Economy (IWWAGE)
“The pandemic and the subsequent lockdown measures have taken a toll on gains made towards advancing women’s and girl’s economic empowerment. The Finance Minister’s Budget Speech laid emphasis on women's empowerment under the ‘Nation First’ strategy, which is a vital acknowledgment of the importance of the issue. The increased budgetary allocation to schemes like the National Rural Livelihoods Mission will help strengthen women’s collectives, which have been at the forefront of the pandemic response and have the potential to generate livelihood opportunities for rural women.

"Increased budgets for household infrastructure schemes, such as tapped water connections under the Jal Jeevan Mission, is a welcome step towards easing the burden of women’s unpaid work so that they can access paid opportunities. Investments in 7 new textile parks also hold promise for generating employment opportunities for women in a sector where 70% garment workers are women.”

Yogesh Mudras, Managing Director, Informa Markets
"The announcement for Rs 64,180 crore for the overall healthcare sector in the Union Budget of 2021 was a vital move by the Government to strengthen the health and wellness centers across India and contribute to our National Health Mission. The vision for recovery in the statewise infrastructure activities supported by robust investments will give the economy the much-needed impetus and help us march towards the $ 5 trillion mark. The collateral-free loans and funds for MSMEs will stimulate growth and render solace to MSMEs hit by the pandemic.”

Anupam Jalote, CEO, iCreate
"The 2021 Budget reaffirms India's commitment towards tech innovation - Rs 50,000 crores for National Research under the PSA is a very solid point. Also acknowledging that fast growing start-ups continue to need support, the redefinition of the paid up capital of small companies from Rs 50 lakh to Rs 2 crore and their turnover of up to Rs 20 crore will definitely attract more dynamic innovators to starting up in India. 'One Person Companies', with no restrictions on capital and turnover brings in a lot of flexibility for smaller businesses. The commitment of support for a world class Fintech Hub at the GIFT City in Gandhinagar will enable our strong fintech sector to start going global.”