Budget Reaction - Mr Siddharth Nambiar, Co Founder and MD - OfficeYes.com

"We are pleased to see an encouragement to MSME by way of the extension of benefits for 3 years for those companies that cross the threshold. This is a core customer constituency for our B2B office supplies e-commerce business and their growth will ensure higher growth for us.

In addition, the participation of global funds and investors is a pre-requisite to encourage the ecosystem. The budget has incentivized startups & SMES. Angel investors registered with SEBI will get pass through status. The news on implementation of a uniform Goods and Services Tax (GST) is encouraging with pre-allocation of Rs. 9000 crore as compensation to States on the passage of the bill. When implemented this will mean that enabling infrastructure such as warehouses, logistics systems etc. will be set up in locations on the basis of pure business efficiency, rather than for tax-related reasons, which should lead eventually to a reduction in costs for customers. The impact on increase on tax on royalties to technology companies will complicate the turf for some organizations, however overall it should be good for the sector. The classification of funding to technology incubators located within academic institutions as CSR is likely to be a great catalyst for innovation."

Source : Equity Bulls

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