A&M industry welcomes Budget as balanced & growth-oriented

While there were no direct benefits announced for the A&M companies in the Union Budget 2022-23, presented by FM Nirmala Sitharaman on Tuesday, the industry is impressed by the balanced and digital-focused initiatives announced by the government. The industry, which was expecting a boost to the MSMEs and the start-up world along with a digital push to the economy, has mostly got what it was aspiring for from this Budget.

According to Publicis Groupe South Asia CEO Anupriya Acharya, the budget was a positive and growth-oriented one. “The advent of 5G is sure to transform communications – for our industry, it will help the creation of better AV, voice and AR/VR experiences. It will also fuel digital payments, streaming entertainment, gaming, e-commerce, telemedicine etc., which in turn will aid more Unicorns! It is also heartening to note that a special Task Force is being set up for AVGC (Animation, Visual Effects, Gaming and Comic) as this will help us build the much-needed capacity both for domestic as well as global markets. And then there have been no changes in income-tax slabs for people, which many consumer segments were worried about. This in turn boosts consumer sentiment. From e-passports to battery swapping for electric vehicles, setting up of optic fibre in the remotest of villages, setting up of a digital university and skilling through an e-portal, the big push is for technology, digital infrastructure and empowerment.”

Kartik Sharma - Group Chief Executive Officer – India, Omnicom Media Group said that the Union Budget shows promise with a focus on the big picture with an impetus on holistic growth, developing infrastructure and job creation across sectors. “Reviving economic growth in the post-pandemic environment has been a focus for this government and this progressive, digital-first, and development-oriented budget reflects that. Not only does it provide a boost to the MSME, agriculture and healthcare verticals, but also signals that investing in infrastructure today will connect India better tomorrow. With an increased focus on digitization, some of the standouts for me were that the Budget recognized the current gaps and opportunities within the education sector, and is advancing towards uplifting India with the creation of a digital ecosystem - one that is focused on upskilling and creating more employment; aligned with the dynamic needs of today. It also aims to further strengthen communications in the rural sector and build upon the overall financialization of India. Furthermore, while the rollout of a 5G ecosystem will improve the quality of services, the launch of digital money, supported by blockchain, signals an increasing focus on transparency.”

Sharma further said, “With consistency in strategic direction and focus on propelling the MSME and start-up ecosystem, this is a welcoming Budget for new-age businesses and a hopeful one that will ultimately lead to a boost in the A&M industry as well. We're at the cusp of the next stage of India's digital revolution and although certain factors like data privacy still remain an area to be delved deeper into, as infrastructure and banking penetrate further into rural India, we’re looking hopeful and strong to transform into a forward-leaning digital economy of tomorrow.”

DDB Mudra Group COO & CFO Anurag Bansal is positive that the budget will give a boost to capital investments and infrastructure development. “This Union Budget looks neutral, with no major changes in taxation. The launch of the digital Rupee based on blockchain technology is a big move to bring in official cryptocurrency in India. New e-passports with embedded chips would definitely ease overseas travel. Managing Fiscal deficit while pushing for growth and investments is a great balancing act taken on by the government.”

As for Grapes Founder and CEO Himanshu Arya, “This is a balanced Budget with announced intent to encourage digital and digitalised commerce, industry and finance. The Blockchain-enabled digital rupee and focus on digitally taught and transmitted education is laudable. We have significant exposure as a services venture in these two segments and we are excited and hopeful that this intent will now translate into real, positive opportunities.”

On the other hand, dentsu India Chief Client Officer Narayan Devanathan wanted the Budget to be a present-focussed one, which it is not. He shared, “Having gone through the 38-page document of the Finance Minister’s Budget speech, I decided to do a search for a couple of words that I thought kept repeating throughout her speech. The words “will be” occurred 110 times in the entire speech. When I narrowed my search to the single word “will”, the number rose to 362. To me, those two words sum up the essence of what this year’s budget is and is not. What it is, is a future-focused budget, aiming at the distant vision of India@100, with a 25-year Amrit Kaal lead-up. What it is not, and what I felt was sorely needed this year of all years, is a present-focused budget.

“A punishing 2021 for the aam aadmi with more-than-usual expenditure on health and sustenance meant the general populace was looking for immediate relief that would place more cash in their household budgets. That did not happen. Nor was there any extraordinary investment in relieving the healthcare expenditure burden. For all the importance of farmers in upcoming poll-bound states, there was neither major sop nor stimulus given to back the importance of agriculture as a spine if not engine of the economy. Even the MSME sectors were only handed a slightly longer lease of life with the extension of the ECLGS, but there was no real move to stimulate consumption by placing more cash at consumers’ disposal, for example, extending LTA claims to restaurants (and not just accommodation). There is perhaps plenty for the industry to cheer about since it can afford to think about the future and a slightly longer term than just the here and now of survival. The stock market did cheer up even before the FM’s speech, but that only served to underscore the dichotomy between the real health of the population and the Minority of Haves. When the general population probably can’t afford to wait for the benefits of trickle-down economics to reach them in yet another trying year, the dreams and wheels of a consumer-driven economy might move slower than the industry might like, despite the many future-facing and progressive policies announced,” Devanathan contended.

Digital Agencies Welcome Favourable Initiatives

With the push to 5G and the task force creation for the AVGC industry, the digital agencies are quite pumped about the opportunities that will open up eventually for the sector.

Isobar Managing Partner Rahul Vengalil said, “5G is going to change the way content is going to be created. It will certainly give impetus to AR/VR and furthermore for faster adoption to Metaverse.”

Meanwhile, Logicserve Digital Founder and CEO Prasad Shejale highlighted that the Budget is a future tech-enabled and balanced one. “The FM has announced a very progressive budget with an intention to widen India's horizons and outlook in the next five years, leveraging emerging technologies. The Government has addressed some urgent priorities underpinning the digital sector, including the launch of digital currency, API-based skill credentials, digital learning channels, digitization of manual processes, etc. On the digital connectivity front, the 5G spectrum auctions will finally make the dream of a tech-savvy India a reality, further boosting the country's digital infrastructure. Additionally, the launch of a design-led manufacturing scheme for the 5G ecosystem as part of the PLI scheme will ensure affordable broadband and mobile communication even in far-flung areas. The availability of high-speed internet connectivity in urban as well as rural areas will encourage marketers to experiment with blockchain, AR, VR.”

He added, “On the skilling front, initiatives like establishing a digital university will provide an opportunity for youth to learn new skills from the comfort of their homes. The creation of a new task force to build domestic capacity in the Animation, Visual Effects, Gaming and Comic (AVGC) sector is commendable.”

Zoo Media & FoxyMoron Co-Founder Pratik Gupta quipped, “According to me the last few years have been paving the path for India to become a financial superpower and I think this budget is an indication of that. The fact that blockchain is becoming mainstream and the democratisation of information, processes and how business functions will start to use blockchain will become an important part of the conversation. By launching its own digital Rupee, India is also marking its arrival in the new world of digital and the digital era that is to come in the next few years. I believe the launch of 5G and the 5G spectrum option are also signs of how this digitisation, the internet of things, the Metaverse and everything that will evolve from there is going to get aligned with the economy and the investments that will be made. As a consequence, in the near future, India will have the capability to serve its own population and serve the population of other developing and developed countries. Because we have the ability to hone, scale and manage creative and technology-focussed people in this new digital era. This budget was a signal of the foray that India is making towards these sectors and also the seriousness with which it is being taken.” 

Digital Dogs Content and Media Co-founder and CEO Ambarish Ray concluded, “This is a balanced Budget with announced intent to encourage digital and digitalised commerce, industry and finance. The Blockchain-enabled digital rupee and focus on digitally taught and transmitted education is laudable. We have significant exposure as a services venture in these two segments and we are excited and hopeful that this intent will now translate into real, positive opportunities.”