Union Budget 2017 reactions from the Tech and Telecom sector

Rajan Mathews, COAI

We agree that there is no scarcity of spectrum in the country. We support the allocation and harmonisation of spectrum. The primary issue is not the quantity of spectrum, but its pricing, quality, deployment and how soon the bidders will be able to access the allocated spectrum. Availability of spectrum is no longer an issue and we agree with the Finance Minister on this. We need to focus on its pricing and quality and take care of the overall development of the telecom ecosystem ensuring a viable environment for the industry to proliferate.

Kenny Ye, GM-Overseas Business, UC Web, Alibaba Mobile Business Group

While last year’s auctions removed spectrum scarcity in the country, expansion of Bharat Net project will ensure high-speed broadband to 1.5 lk gram panchayats via Wifi. With increasing smartphone penetration and push for high-speed broadband connectivity in rural areas, a massive digital revolution is imminent in India. Lastly, reduction of corporate tax for MSMEs is a welcome step but larger Indian conglomerates looking to compete with global peers will continue to find the tax rate challenging.

Anant Maheshwari, President, Microsoft India

The Finance Minister has presented a balanced budget, underlined by the continued push to using technology to aid a digital economy. As India strengthens its position on the global map, the need for skilled youth is crucial. The budget’s focus on extending market relevant training for the youth and setting up 100 international skill centers across the country, is a positive move. The emphasis on science and technology for students, and launch of SWAYAM, will further empower India’s youth for the future. I am glad to witness the increasing focus on cybersecurity, which is critical to securing the economy’s digital transformation. The reduction of corporate tax for MSMEs is a welcome move and will boost the economic growth. The momentum in the implementation of GST is promising and I look forward to seeing it unfold in the coming months.

Arpita Pal Agrawal, Leader- Telecom, PwC India

Digital India is a winner in this budget with provisions for Bharat Net, PoS Terminals etc. Telcos will benefit as this will accelerate adoption of data services. However the specific Industry demands related to clarity on pending tax issues have mostly remained unaddressed.


Atul Rai, CEO and Co-founder, Staqu, a Gurgaon-based Artificial Intelligence Startup

The Union Budget 2017 doesn't provide any direct benefits to startups this year. Besides, the tax exemptions from capital gain are rather difficult to meet, at least in the early stage of 3-5 years for a startup. However, the newly announced exemptions for income tax of common people and well-rounded push towards digital payments will ultimately increase the buying capacity, along with mobile phone utility. These institutional changes, I believe, will push towards the growth of new age digital startups, albeit indirectly.