Advertising fraternity applauds the Union Budget 2024

New Delhi: Finance Minister Nirmala Sitharaman presented the annual budget today, on July 23, 2024. 

Sitharaman said, “The Budget will focus on employment, skilling, MSME and middle class.”

An allocation of Rs 1.48 lakh crore for education, employment and skill development was announced.

The budget aims to strengthen India’s economic base by enhancing agricultural productivity and promoting innovation through R&D. It prioritises employment generation, inclusive human resource development, and energy security to propel the nation towards resilience and growth. 

Following such announcements, the media and entertainment leaders expressed optimism and commendation for the government's initiatives, especially those focused on education, employment, and skill development. 

From forwarding MSME growth to the granted tax reliefs that spur startup investments, the experts recognise the potential impact the budget has in forwarding the economic rise of the nation and to their own respective industries.

Ahmed Aftab Naqvi, Global CEO and Co-Founder, Gozoop Group, said that the removal of the angel tax will spur more startup investments in the country and give a boost to growth marketing services that are essential for early-stage startups to survive and scale.

He also lauded the Rs 15,000 crore aid for the development of Amaravati, which he believes will make the city the new greenfield IT capital of Andhra Pradesh. 

He added, “This will boost the startup ecosystem, find a bigger base and, in return also show green shoots for the advertising industry.”

He also lauded the Rs 26,000 crore allocated in Bihar towards the development of road projects, airports, medical colleges, highways and sports facilities as a major development that will only increase opportunities to highlight all this work and hence benefit the ad industry.

Sri Hari, Chief Business Officer of GenY Medium also applauded the progressive steps taken in the Union Budget 2024 to do away with the Angel Tax for startups. He believes that these reforms will encourage innovation and growth by improving the investment climate, freeing up startups from cash constraints and focusing on growing their businesses. 

He added, “As a digital marketing agency, we see tremendous potential for innovation that startups bring, and as their funding increases, they will require more effective marketing plans to connect with consumers and build their brands.” 

Prashant Puri, Co-Founder and CEO, AdLift, echoed the optimism, especially towards the schemes for the youth regarding internships, employment-linked incentives, etc. 

Puri believes that this aligns with India's vision to become one of the top three global economies. He added that financial support for higher education loans up to Rs 10 lakhs is an excellent push and adds to the country's growth in becoming the world’s 3rd economy from 5th.

According to Bhavesh Talreja, Founder and CEO, Globale Media, the reduction of the corporate tax rate from 40% to 35% for foreign companies will attract more investors to participate in India's growth story. He added, “Simplifying Foreign Direct Investment (FDI) rules will further encourage the use of the Rupee for overseas investments.”

He continued, “Addressing the need for more jobs, three employment-linked incentive schemes have been introduced, along with a focus on youth skilling. The budget also emphasizes energy security, modern infrastructure development, and research and innovation.”

Prady, CEO and Managing Partner, NP Digital India, agrees with the notion that the budget is a significant step in shaping India's economic future by prioritising education, employment, and skilling. 

He believes that the budget lays a strong foundation for nurturing talent and fostering innovation across sectors, including digital marketing. 

He believes that the new mechanism to ensure continued bank credit to MSMEs during periods of stress is a vital support system that will help sustain and grow small businesses. He also added that the reduction in corporate tax rates from 40% to 35% will undoubtedly boost business confidence. 

He lauded the relief provided by the revised tax slabs and the increased standard deduction in the new tax regime and said that it would benefit individual taxpayers and enhance their purchasing power. 

He added, “This budget reflects a balanced approach to driving economic progress and addressing key areas of concern.”

Vikram Kumar, MD and Founder, SRV Media, lauded the support for the education sector, especially the E-vouchers for education loans at just 3% interest, financial backing for loans up to Rs 10 lakh for higher education, and the upgrade of 1000 industrial training institutes; he was critical of the need for a more inclusive approach that also supports the digital marketing sector. 

He added that the budget does not address the needs of the digital marketing industry and highlighted the absence of specific measures for digital marketing companies. 

Shradha Agarwal, Co-Founder and CEO, Grapes, commented that the focus on youth and women's employment is a welcome move and that the proposed allocation of Rs 1.48 crore for skilling can play a pivotal role in boosting job opportunities across the country. 

She also believes that the changes in the new tax regime will pave the path for a coexisting ecosystem that will benefit both the organisation and employees at the same time. 

Shrenik Gandhi, CEO, White Rivers Media, prefaced his opinion by adding that the economic survey of 2023-24 noted 7% growth in advertising and marketing start-ups; 5% in media and entertainment start-ups and 4% growth in gaming start-ups. 

He opined that the angel tax abolishment and establishment of a corpus of Rs 10,000 crores to meet the funding needs of start-ups have steamed the 'Start-up India' initiative.

He believes that both the Economic Survey and Budget highlighted the push towards artificial Intelligence and advanced technologies. 

He added, “As part of building ‘AI in India and AI for India’ the government is walking the talk on developing indigenous AI capabilities, ensuring socially impactful AI projects, and promoting ethical AI amongst other AI-driven initiatives.”

Gandhi is confident that the budget is clearly indicative of the 'tech-tonic' shift in consumption patterns of Indian consumers and that this will propel major digital spends by brands on mobile advertising.

He added, “In addition, the Bharat 6G Vision document and Alliance, ensuring broadband connectivity for all Gram Panchayats, 100% FDI in the telecom sector coupled with UPI, ODOP, ONDC, the government is fueling growth for advertisers who are optimally using telecommunication and e-commerce sectors.”

He lauded the budget’s financing pool of Rs 1 lakh crore in private sector-driven research and innovation and believes that this, with the fast-paced shift towards online payments, e-commerce, entertainment platforms, and an increase in the demand for high-tech services, will further enable job and entrepreneurial opportunities for youth in the A&M, M&E, and AVGC sector. 

Sahil Chopra, Founder & CEO- iCubesWire commended the budget’s approach to developing Digital Public Infrastructure (DPI) at a population scale. 

He said, “This initiative is set to revolutionise the digital advertising and social media marketing industry by enhancing productivity, creating vast business opportunities, and driving innovation.

He believes that the expansion of DPI applications across sectors such as e-commerce, education, and MSME service delivery is poised to significantly boost the digital marketing landscape. 

Chopra is hopeful that by facilitating better connectivity and more efficient service delivery, these advancements will enable marketers to reach wider audiences with greater precision and effectiveness.

He believes that from the consumer's standpoint, the new tax regime is expected to result in a reduction in income tax for salaried employees, offering significant relief to the middle class. This reduction in the tax burden is anticipated to increase savings and lead to a rise in consumer retail demand.

Yasin Hamidani, Director, Media Care Brand Solutions, lauded the revision in tax rates but pointed out that the hike in investment taxes, particularly on short-term and long-term capital gains, might dampen investor sentiment and market activity.

While commending the employment and skilling schemes, Hamidani also lauded the additional measures, such as removing the angel tax and reducing import duties on essential commodities like mobile phones and precious metals, as they are likely to stimulate the startup ecosystem and consumer markets. 

Pankaj K Arora, Co-founder of Whilter.AI, lauded the budget’s focus on tech innovation and startup ecosystem and believes that the new credit guarantee scheme for MSMEs in the manufacturing sector will help early-stage ventures overcome initial hurdles, further supporting startups and MSMEs by offering easier access to funding.

He added an open call to the government to continue prioritising AI research and development, along with establishing clear ethical guidelines for generative AI. 

He said, “This will ensure that technological advancements are made responsibly, fostering trust and ensuring that innovation benefits society as a whole.”

Vaibhav Gupta, Co-Founder and CPO, KlugKlug highlighted that the budget’s focus on digital infrastructure and ease of doing business is a positive step for the advertising and marketing sectors. 

Shedding optimism, he added that the review of the Income Tax Act and the simplification of capital gains taxation will reduce compliance burdens, allowing businesses to focus more on growth and innovation. 

He said, “The proposed decriminalisation of delays in TDS payments and the reduction of TDS rates for e-commerce operators are welcome changes that will enhance operational efficiency.”

Ambika Sharma, Founder and Chief Strategist, Pulp Strategy lauded the ‘forward-thinking’ approach and the focus on incentivising the adoption of advanced technologies such as AI, AR, and VR as a significant boost for the digital advertising and transformation segment. 

She added, “These initiatives will not only foster innovation but also create a robust ecosystem for targeted and impactful marketing in the times to come.”

She also added that the budget's emphasis on MSME support, particularly through the new Credit Guarantee Scheme and improved credit assessment models based on digital footprints, is a critical step forward. 

She also believes that the services sector is poised for substantial growth with the development of Digital Public Infrastructure applications and the Prime Minister’s ambitious employment and skilling package. 

She added that it is a positive and promising outlook for the future of digital advertising and the broader economic landscape.