Budget 2017: From highway to e-way media sector searches for sops


MUMBAI: The Indian government today unveiled a roadmap for financial year 2017-18 that covers areas from “highways to e-ways” (PM Modi’s words while describing the Union Budget 2017) aimed at “strengthening the hands of the poor”, while looking at further easing doing business by abolishing Foreign Investment Promotion Board and hinting at a new FDI policy. However, for India’s media and entertainment sector, especially the broadcast and cable sector looking to reach the $ 100 million turnover mark, there wasn’t much to cheer about --- unless an angel is hiding in the fine prints that are still being deciphered.

Finance minister Arun Jaitley, while announcing the Budget, has brought in macro-level major financial reforms by slashing tax rates for middle level income groups and opening the FDI floodgates in favour of a rural economy.

Jaitley’s budget focused on boosting infrastructure and lifting up rural incomes besides bringing in reforms in the financial sector such as the abolition of the FIPB to enable a new policy for FDI. The Indian Railways Catering and Tourism Corporation (IRCTC), one of the world’s biggest e-commerce companies, will be now be listed, Jaitley said, aside from sending out an indirect warning to economic offenders such as Lalit Modi and Vijay Mallya that for for absconders new legislation would be drafted soon.

But a big thumbs up to the government for allocating Rs. 10,000 crore (Rs 100,000 million) to boost rural fibre optics network to give further leg up to all round digitisation.

While the fine prints are still being read, some highlights are as follows:

# The FIPB will be abolished. Further liberalisation in the FDI policy would be done in the next few days. (Star Den, etc to benefit)

# SANKALP – Rs 4000 crore allotted for market-oriented training. (At least 4 million youth will be provided market-relevant training under Sankalp programme)

# Cashback scheme - Petrol pumps card payments, launch two more schemes for use of BHIM app

# In yet another boost for digitisation, the government has removed service tax on e-tickets .

#IRCTC to be listed.

# The government proposes to create a payment regulatory board at RBI. (The proposal assumes significance as there is currently no regulator for FinTech companies such as Paytm in India.)

# Small and Medium enterprises (MSME) to be encouraged. Income tax reduced to 25% from 30% if turnover is up to Rs 50 crore or Rs 500 million.

# Startups to pay tax on profits for three out of seven years, increased from three out of five years.

# Under Bharat Net, optic fibre cable has been laid out In 1,55,000 km. (Recent spectrum auctions have removed spectrum scarcity.) Bharat Net allocation at Rs 10,000 crore.

Latest Reads

ConnecTechAsia Successful in Bridging the Digital Divide for Governments, Cities and Enterprises with Showcase of Latest Tech and Trends

ConnecTechAsia, the inaugural mega technology event comprising BroadcastAsia, CommunicAsia and the new NXTAsia wrapped up last week after an exciting three days of exhibitions and a summit covering the latest innovations in cloud, blockchain, AI, VR/AR, IoT, robotics, 5G, IP broadcasting, OTT and...

Specials Event Coverage Occasions
Lessons Learned With Bitcoin

Blockchain technology is one of the newest buzzwords in business. It is hardly surprising considering that the tech is having such an impact over so many different industries.

Specials Promonet feature
The company is collaborating with Lakme Fashion Week and designer Anita Dongre

World Environment Day - 2018 is going to be special as India is hosting global celebrations of the event today. To commemorate the occasion, Reliance Industries Ltd (RIL) has launched a special T-shirt, branded ‘The Earth Tee’ and designed by renowned fashion designer Anita Dongre, under its...

Specials Event Coverage Occasions
Promaxbda India 2018 announces Puja Vohra and Glenn Urquhart as their masterclass speakers

PromaxBDA India has announced its first 2 Masterclass speakers for the 15th edition of its annual conference and awards property in India, which will take place on 23rd May 2018. Speaking at the Masterclass are truTV’s Puja Vohra and creative mastermind Glenn Urquhart.

Specials Event Coverage Occasions
ABBY Awards 2018 shortlists announced

The coveted ABBY Awards that recognizes and rewards excellence across Advertising, Marketing and Media has now announced that the shortlists for the 2018 edition have started being posted, by category.

Specials Event Coverage Occasions
Ficci Frames and market concludes on grand note

The FICCI Frames and the newly launched content market as part of FICCI Frames 2018 concluded on a grand note.

Specials Event Coverage Ficci Frames
Screen Density: Lessons from the world & Exploring new business models

n Day 2 of FICCI FRAMES happening in Mumbai, there was a session on Screen Density in India attended by some eminent panelists consisting of Mr. William Feng, VP, Greater China, MPA, Kurt Rieder, Head-Theatrical Asia, 20th Century Fox, Kapil Agarwal, Joint MD, UFO, Kamal Gianchandani, Chief of...

Specials Event Coverage Ficci Frames
Broadcasters see positive future for TV in India

MUMBAI: The threat of OTT and integrated platform ecosystems like Android TV is at the peak. Its increasing penetration across all age groups may be a threat to the broadcasters in the coming time. But, it isn’t the case yet in India with 64 per cent TV home penetration and much room for growth....

Specials Event Coverage Ficci Frames
M&E stakeholders need to collaborate for growth: Sudhanshu Vats

MUMBAI: If the Indian media and entertainment (M&E) sector, poised to be Rs 2 trillion industry by 2020, is to be a force multiplier and up the present growth trajectory, then all the stakeholders, including the government, need to collaborate sinking differences, according to Viacom18 Group...

Specials Event Coverage Ficci Frames

Latest News

Load More

Sign up for our Newsletter

subscribe for latest stories