Budget
Budget ’17: Encourage digital economy to make tax system globally competitive
MUMBAI: Various industry sectors are of course expecting the budget to ease stress in the business environment with tax rebates, restructuring of slabs or incentives. The advertising and communication industry is seeking some incentive announcements to further popularise the digital initiatives of the government. In the backdrop of demonetisation, every addressable transaction may be charged which may ideally move in the direction of becoming a zero-tax nation.
Pulp Strategy Communications Founder & MD Ambika Sharma says, “The upcoming budget announcement I hope will focus on providing incentives such as better tax slabs to ‘Make in India’ companies in the technology space. A relaxation in the corporate tax rate will give a great boost to the startups in the tech sector in India, and will encourage tech companies to contribute more actively to the vision of ‘Digital India’.”
She recommends that “Provisions must also be made for carry forwarding losses to be set off against any future income.”
Sharma feels, “The growth in smartphone penetration and better internet connectivity means that more consumers are now leveraging the online channels of media consumption. However, players in the segment currently have to deal with different taxation slabs, leading to multi-layered problems such as effective tax rates, dual tax levies, and multiplicity of indirect taxes. This calls for a standardisation of tax and implementation on online media in the latest budget. Implementation of the tax should be standardized and made simpler with all players following a standard structure with no ambiguity.”
Vertoz Media CEO and founder Ashish Shah says, “There is hope that there will be some incentive announcements to further popularise the digital initiatives of the government. Being a pure AdTech firm, we are very optimistic on the government’s vision of ‘Digital India’. We expect to see a growth oriented budget.”
“The government has been encouraging entrepreneurship among the younger generation with its flagship initiative – ‘Startup India’ and keep up the momentum this time as well. More entrepreneurs in the ecosystem will drive sustainable economic growth and generate more job opportunities,” Shah added.
Dentsu Aegis Network chairman & CEO – South Asia said, “A Union Budget that is growth oriented and puts more money in the pocket of the common man will benefit the advertising industry. Research has shown that, as a rule of thumb, every percentage point added to the GDP growth adds 1.5 – 2 per cent points to the advertising Industry growth. So, I hope that there is a growth oriented budget, which in turn spurs economic growth all around in India, particularly in the rural areas.”
He is forthcoming on the fact that “the advertising industry doesn’t really mind paying legitimate taxes. It is actually the on-ground implementation and the complexities of the taxation system that causes huge amounts of productive time to be wasted in unproductive red-tape. In that context, any simplification of the taxation processes, both in the direct and in the indirect tax areas will be welcome. Even GST, which was supposed to simplify indirect taxation, is likely to inadvertently make it much more tedious for the services sector. The Government needs to address this urgently. Service tax on advertising is already very high at 15 per cent, including surcharges. I hope, particularly given the slowdown caused due to demonetisation, the finance minister will consider not taking it up any further and reducing it if possible.”
Chrome Data Analytics & Media MD Pankaj Krishna says, “Post-demonetisation, the government would be looking at increasing demand, hence we can expect people-friendly measures being introduced in this budget. There will also be a focus on more spends on infra, utilizing the gains from demonetisation. The prime minister’s laudable schemes, including smart cities and digital India should stand to gain more fund allocation. Rural connectivity too will be in focus, given the govt.’s push towards cashless transactions.”
Krishna feels, “This is an ideal time to see a cut in corporate tax, given the unprecedented collections for banks, to the tune of Rs 14 lakh crore. Personal taxes too should see a cut and a more simplified structure. The exchequer would generate it from charging a percentage per transaction, since these will be addressable transactions. Ideally, this will be a move in the direction of becoming a zero-tax nation.”
moneycontrol editor Santosh Nairbelieves, “Due to the buoyant tax collections — both direct and indirect, the numbers for the current fiscal are likely to be healthy. Most economists expect the fiscal deficit target of 3.5 per cent to be maintained.”
He feels, “The big challenge for the FM is going forward is to forecast revenues and spending without a clear handle on the impact of demonetisation.”
“To help create more jobs without adding to its own wage bill,” he opines, “the government is likely to announce incentives for start-ups by way of friendly tax structures and fewer approvals to set up a business.”
Viacom18 group CEO & CII media and entertainment committee chairman Sudhanshu Vats is expectant of a high-impact budget, as he says, “This budget will be a ‘transformational’ budget. The government has already showcased its commitment to alter the status quo by changing the classification of expenditure, subsuming the rail budget and advancing the date of the announcement.”
He says, “I have always maintained that as an industry, we have a lot to gain from an economy that is buoyant in the aggregate sense. This year’s budget will enable just that – a revitalized economy that’s raring to go. Demonetisation is sure to expand the tax base in the medium term. I am certain that the government will use this added fire-power in a prudent manner. Hopefully, we’ll get to hear policy measures that encourage the digital economy, make India’s tax system globally competitive and put more money in the hands of Indians. As the saying goes, ‘the best is yet to come’.”
SABGROUP CEO Manav Dhanda says, “From a media industry perspective, I feel that a change in the definition of industrial undertaking for the services industry as well as a push to define the GST roadmap would be sector-positive. There is a landmark attempt in the budget to simplify the tax administration, which should herald a friendlier tax regime.”
“Not increasing the service tax,” he said, “is a positive, particularly for the advertising and media sector.” “The general expectation will be that service tax may go up in anticipation of higher GST rates. Controlling the fiscal deficit and several steps to invigorate the rural economy and rural consumption are positive signals. A rural consumption revival will help the economy and the advertising and media sector tremendously,” he feels.
There will an expectation based on what the finance minister said in the past, that the corporate tax rate would come down, Dhanda said.
In balance, there seems an expectation of a mixed bag budget with a positive bias.
“Digitisation, in my opinion,” he said, “is the most important factor for the broadcast sector — change in excise duty changes proposed for set-top-boxes might help in the last mile infrastructure of Digital Addressable System (DAS).”
“The proposal for a more conducive excise duty regime for STBs and other ‘entertainment-access devices’ would be welcome,” he said.
Jack in the Box Worldwide president Kaizad Pardiwalla says,”I hope this budget is a growth-oriented budget, one that incentivises consumption. If GST comes in that will also aid India Inc. and will hopefully see an upswing in media spends. Digitalisation is and should remain a priority for the government as it is leading to an opening up of the economy and driving profitable growth.”
Contiloe COO Anup Vijai says, “I think there will a reduction in the overall tax rate. And also, GST was supposed to be implemented come 1 April, but now they are talking about 1 July. So we are expecting a road map around that. Right now, the GST slab rates have come up.”
“Going forward,” he said, “we are expecting the rates of movie tickets to go down say by 15 to 20 per cent in the state of Maharashtra where we have a very high entertainment tax. Moreover, high rates of entertainment tax and lack of uniformity in tax rates across different states, is adding on. A uniform taxation across product categories will benefit the entertainment sector on the whole,” he added.
MUMBAI: Anuj Singhal, managing editor at CNBC- AWAAZ and CNBC BAJAR, operates at the sharp end of India’s business news ecosystem. With over two decades in business journalism, he has earned credibility for decoding policy, markets and macro trends for millions of Hindi-speaking investors. Equal parts newsroom leader and market analyst, he shapes editorial direction while anchoring flagship shows that break down the economy, politics and corporate India in real time.
Known for cutting through jargon and hype, Singhal blends data, discipline and clarity — a mix that has made him one of the most trusted voices in Hindi business news.
In this interaction, he discusses the Union Budget, trade deals, newsroom strategy and what truly moves markets and ratings.
• What was the single most market-moving announcement in this Budget, and why?
The most market-moving element was the clear commitment to fiscal consolidation without compromising capex. The glide path on fiscal deficit reassured bond markets and foreign investors, while sustained public investment kept growth expectations intact. That balance removed a big overhang for both equities and debt.
• Do you see this Budget as growth-oriented, fiscally cautious, or politically calibrated?
This Budget is growth-led but fiscally disciplined. It avoids overt populism, stays within macro guardrails, and prioritises medium-term competitiveness over short-term optics. Politically, it is restrained; economically, it is deliberate. The message is clear: stability over spectacle.
• How is CNBC-AWAAZ programming different, especially in decoding trade deal impact?
CNBC-AWAAZ goes beyond headline reaction. We translate policy into portfolio impact — sector by sector, stock by stock.
On trade agreements, our focus is on:
-Earnings visibility
-Export competitiveness
-Currency implications
-Margin sustainability
We don’t treat trade deals as political milestones. We decode them as profit-and-loss events for corporate India and map them to FY earnings trajectories.
• Which sectors look like clear winners and laggards over the next 12–18 months?
The next 12–18 months favour sectors aligned with structural spending and supply-side strengthening.
– Clear beneficiaries:
Capital goods and infrastructure
Manufacturing linked to export chains and PLI ecosystems
Power, defence, and logistics
– Relative laggards:
Consumption segments dependent on immediate demand revival
Businesses facing margin pressure from global volatility or pricing power erosion
This is not a momentum-driven market environment. It is execution-driven. Balance-sheet strength and order visibility will matter more than narrative.
• One headline to sum up this Budget 2026 for India Inc?
“Steady Hands, Long-Term Vision: A Budget That Rewards Discipline Over Drama”.
• What editorial filters do you apply before calling something ‘market-positive’ or ‘negative’?
We apply three structured filters:
– First: Earnings translation — does this materially change earnings visibility or cash flow outlook?
– Second: Time horizon — is the impact immediate, cyclical, or structural?
– Third: Valuation context — good news priced in or not.
If a policy doesn’t move earnings or risk perception, we don’t oversell it.
• How has business news consumption changed around big policy events?**
There has been a clear behavioural shift. They’re less interested in what was said, more in what it means for their money. There’s also a clear shift toward second-screen consumption, with digital platforms complementing live TV. The audience seeks sharper accountability. Viewers no longer accept broad optimism or pessimism — they want frameworks, numbers, and sector mapping.
• CNBC-AWAAZ decisively outperformed on Budget Day. What editorial and distribution choices mattered most?
Three deliberate strategic choices:
– Preparation depth:
We build scenarios months in advance — deficit ranges, sectoral incentives, tax calibrations — so we’re ready with analysis the moment numbers are announced.
– Language of impact:
We translate macro policy into investor-friendly Hindi without diluting complexity. That bridges accessibility and sophistication.
– Integrated distribution:
Television, YouTube, and digital platforms operate as one editorial grid, not parallel silos. This ensures continuity of narrative.We stayed analytical while others stayed reactive.
• How different is your YouTube audience from your TV audience?
The behavioural differences are subtle but important. TV audiences prioritise authority, structured debate, and context. YouTube audiences want speed, clarity, and actionable insights — often sharper, sometimes more opinionated. However, both share one expectation: accuracy. The format evolves; the trust benchmark does not.
• How do you retain viewers after the budget speech ends?
By shifting from announcements to implications.Retention comes from shifting the narrative from announcement to implication. We break down sectoral breakouts, stock-level impact, and what to do next. The speech is just the trigger; analysis is the destination.
• Is Budget Day your biggest traffic day?
It is one of the biggest — but more importantly, it is among the deepest in engagement. Viewers spend longer durations, revisit segments, and seek follow-up programming. That indicates behavioural trust, not just traffic.
• What’s the first thing you personally track on Budget Day — the speech or the markets?
The markets. They’re the fastest truth-teller. The speech explains intent; markets reveal interpretation.
• Your personal Budget-day ritual?
Early morning prep, minimal distractions, and once the speech begins, complete immersion. For me, Budget Day is less about reaction and more about reading between the lines.
• What drove your Budget-day ratings dominance, and how are Budget and trade deals shaping markets now?
Our dominance came from credibility, consistency, and clarity.
As for markets, both the Budget and recent trade deals are reinforcing a narrative of policy stability and global integration, which supports valuations even amid global volatility.
For Singhal, the market is the final judge. Policies can promise and speeches can persuade, but prices reveal what investors truly believe. As India’s investor class grows more informed and more demanding, business journalism is shifting from commentary to calibration. The premium is on clarity, context and credibility. In a landscape flooded with noise, the real edge lies in interpretation. In the end, the markets listen to numbers, not narratives , and Singhal’s craft is helping viewers tell the difference.
