Industry reactions to Union Budget 2022-23 (Part-17)
“The growth and prowess witnessed in the data center market across the country presents enormous opportunities for businesses and industries alike to reap scalable benefits and drive growth and profit in tandem. The Union Budget 2022 presented by the honourable Finance Minister to grant infrastructure status to data centers and energy storage systems in order to facilitate financing for the industry is a step in the right direction. This intervention will be instrumental for the sector as it advances towards harnessing its increased potential and technological advancements. As we enter the new era of Digital India, we must focus on recognising, addressing, and overcoming environmental challenges, as well as developing a blueprint for navigating the future of sustainable data centre solutions. According to research conducted by JLL, the capacity of India's colocation data center industry is expected to double by next year; 2023. This in turn, would necessitate the requirement for more than five million square feet of real estate to empower the burgeoning industry. Today's announcement puts data center development at par with other major sectors in terms of access to long-term and low-cost credit, thereby accelerating efforts towards data localization. We will continue to align with the Government of India's landmark Aatmanirbhar Bharat vision to promote conscious, clean, and sustainable technology solutions that are self-sufficient and driven by innovation. The solutions that we devise today will shape our future tomorrow as we envision and redefine resilience and operational excellence powered by cutting-edge technologies in data center operations of the future.”
– Sachin Bhalla, VP and Country General Manager, Secure Power Division, Schneider Electric India and SAARC
“The Union Budget 2022 made a significant endeavour in addressing some of the most pivotal issues that affect the country’s economy, and the resolution provided towards these will accelerate efforts and provide opportunities towards growth. The vastly expanding supply chain market has received immense focus in the budget, and this is an active driver of the country’s economy. The new proposals put forth by the budget will ensure that greater support is rendered to bolster the existing nexus of supply chain networks across the country, and this will further embolden them towards empowering end-to-end supply chain mechanisms for local products. Not only will this contribute towards building digitally-led, future-proof supply chain networks, but will also align with our larger goal of powering an Aatmanirbhar Bharat. The logistics sector is a critical enabler in achieving the goal towards becoming a $5 trillion economy. The implementation of the National Logistics Policy will aid in the elimination of several bottlenecks in the supply chain industry and chart a roadmap for a streamlined and scalable future for enterprises, industries and the greater nation. Furthermore, the development of 100 cargo terminals under the Prime Minister Gati Shakti scheme is a positive step that will not only help the industry grow but will also provide more job opportunities for our country's youth. We are hopeful for great developments and defining new possibilities with this announcement.”
– Javed Ahmad, Sr. Vice President, Global Supply Chain, International Region, Schneider Electric.
“Climate change is one of the greatest threats that affects us as a nation. This is also a significant source of concern for global security. Given the gravity of climate change, the honourable Finance Minister's announcement of major allocations aimed towards increasing renewable energy, empowering energy efficiency, and grid-connected energy storage will bring forward change and forge our future with actionable, result-oriented outputs. These endeavours will be instrumental in driving the greater goal of carbon-neutrality and powering a net-zero future with digitalization at core. The implementation of town planning schemes, modernization of building bylaws, and transit-oriented development for urban capacity building will have a direct contribution to the achievement of our sustainability goals. The proposal for energy efficiency in large buildings through the Energy-Service-Company-Business model, capacity-building exercises and awareness campaigns to improve healthcare infrastructure, will bolster the sector even further and bring revolutionary advancements in play. The government's recognition of the consistent improvement of the health infrastructure over the last two years is a source of pride and motivation for every individual’s tireless efforts in mobilizing the industry and transforming its scope to become more digital, self-reliant and future-proof. The implementation of an open platform for the national digital health ecosystem, which includes digital registries of health providers and health facilities, a unique health identity, a consent framework, and universal access to health facilities, will be critical as we aim to grow from strength to strength. The initiatives announced under the Union Budget will facilitate the ongoing efforts towards the digitalisation of the sector while also enhancing the role of health-tech businesses and driving the country’s health-tech sector forward.”
- Bhupesh Arora, Business Head- Digital Energy, Schneider Electric India
“Mental health problems are growing in our country; and have reached alarming proportions with the pandemic. Increasing evidence supports that mental health issues are proliferating across geographies, age groups, and genders. We welcome the government's initiative of a national tele-mental health program and believe it’s a good starting point to normalize mental health conversations and seek help and access to universal health facilities. As a responsible insurer and a purpose led brand, we strongly believe that mental health is as important as physical health and remain committed towards educating our citizens and creating awareness on mental wellness.”
- Anup Rau, MD and CEO, Future Generali India Insurance
“Budget 2022 displays the governments ambitious expansion of EV infrastructure for faster, smoother transition into the EV ecosystem, which is definitely a welcome move on many fronts. This move impacts sustainable living and further accelerates usage of electric vehicles, pushing India towards green transportation. Interestingly, this also opens the doors for real estate sector to offer advanced prop tech enabled homes across segments. Homes of tomorrow will not only need to be connected and secure, but also more green with infrastructure to support EV charging.
The larger narrative for India is to enable a potentially strong and self-sufficient industry, with allocations ranging from Rs. 48000CR for housing under PMAY, which will help to create 80 lakh residences and help the government address the country's affordable housing challenge, to Rs.19,000 CR for PLI for solar modules. India's commitment to green energy will start to be supported by the provision of Rs. 1,400 crore for hydro and solar projects. Green Energy and Clean Mobility technology will further elevate The country’s roadmap towards a more inclusive economy with more “young” jobs. The new policy announcement for battery swapping to stimulate the adoption of electric vehicles will fasten the transition to electric transportation, making it necessary for real estate developers to provide charging stations as an added amenity for new-age home buyers.”
- Daniele Russolillo, COO & Deputy CEO at Planet Smart City
“The Government has once again ensured trust-based governance to build Atmanirbhar Bharat by extending the The Emergency Credit Line Guarantee Scheme (ECLGS) till March 2023. We welcome the move of extending the ECLGS scheme which will be beneficial for the MSMEs. Significantly, several textile and hosiery players belong to the MSME sector. On the other hand, the credit and fiscal support of 5 lakh crore will give a huge boost to this sector encouraging new businesses to come to the fore. Besides, the announcement will certainly generate more than 10 lakh of employment opportunities in a short span of time.
The proposal of 350 exemption entries to be gradually phased out is a significant move. These include exemption on certain agricultural produce, chemicals, fabrics, medical devices and drugs and medicines for which sufficient domestic capacity exists. We are hopeful that this is likely to benefit the textile industry.
The government has reposed its faith in taxpayers, entrepreneurs, investors, enabling it to build an open, digital and inclusive India with a 25-year vision. As there has been no reduction/relief on the personal taxation side, however, the good part is that we did not see levy of any additional tax.”
-Vinod Kumar Gupta, MD – Dollar Industries Limited