Wednesday, December 8, 2021
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Budget 2021: Extension of social security benefits to Gig workers a welcome move

The announcement in Union Budget 2021 that social security benefits will be extended to gig workers and platform workers and that the government also proposed setting up of a portal to collect information on gig workers, is likely to be a welcome move for the new economy work-force, says the industry leaders.

According to them, the evolution of the Gig Economy is a testament to the changing dynamics at the workplace and how future of work is playing out. Here are the views of senior industry leaders on Budget 2021.

Roopank Chaudhary, Partner, Chief Commercial Officer India & South Asia, I Performance & Rewards I,

The budget’s announcement that social security benefits will be extended to gig workers and platform workers and that the government also proposed setting up of a portal to collect information on gig workers, is likely to be a welcome move for the new economy work-force. The evolution of the Gig Economy is a testament to the changing dynamics at the workplace and how future of work is playing out. A larger percentage of organizations in India plan on increasing the amount of work given to gig workers in the next 2-5 yrs and this could be an important enabling factor in the relationship between employers and gig workers.

The start-up ecosystem also gets a much-needed boost as the tax holiday for these businesses was extended by one more year to March 2022 in the budget, as well as the capital gains exemption given to start-ups also extended by a year more. Such moves are expected to positively impact the sentiment in the start-up sector and act as an incentive.

Ujjwal Jain, CEO & Founder, WealthDesk

Consolidation of multiple securities laws into a Single Securities market code will bring in clarity and boost capital and debt markets. Likewise, the introduction of an institutional mechanism to buy corporate bonds and an AMC to handle stressed debt from banks will further strengthen debt markets, bringing in faster debt resolution and greater liquidity. Avoidance of changes to taxation – income tax, LTCG, STT, wealth tax, or a Covid cess – will further spur capital market participation in the coming year. The budget also ensured continued support to the Startup ecosystem by extending tax holiday and capital gains exemption for investment by 1 more year to March 31, 2022. Increased spending on infrastructure and enabling entry of FPIs into debt financing in the sector will also boost economic growth and revival.

Shubhradeep Nandi, CEO & Co-Founder, PiChain Labs

An increase in tax holiday for Startups will help as a boost after the pandemic blues. Incorporation of OPCs without paid-up capital and turnover limitations will allow them to grow without compliance challenges and help get into the mainstream quickly. The other interesting thing to watch out for will be MCA 21 version 3.0 portal powered by advanced technologies like data analytics, AI & Machine Learning. This hopefully will reduce the manual TAT and gaps leading to holistic due-diligence. Doubling of allocation for MSME will hopefully be a great boost towards new employment generation post the very challenging covid period that had seen poor demand & job cuts.

Sharad Bhatt, CFO, Eolstocks

The union budget 2021 has quite a several steps to support the MSME sector. Measures announced for financial Inclusion and reduction of the margin money requirement from 25% to 15% will boost their growth. The budget aims to benefit many of our customer segments and will benefit us as well. The recent announcement of the Startup Seed Fund has already boosted the morale of the startup ecosystem and we are really hopeful for the coming year.

Rasik Pansare, Co-Founder & CMO, Get My Parking

The reduction of red tape for OPC (one person company) will give a boost for solo founder startups. This will incentivise the entrepreneurs to quickly incorporate without worrying about paid-up capital and turnover and focus on execution of their idea. Later when their venture gains traction, they will enjoy the freedom to convert the OPC to any other legal entity and add more directors (co-founders or investors).

The Vehicle Scrapping Policy will encourage the transition to newer cleaner vehicles on road. Because most of the new vehicles are smart and connected vehicles, this will indirectly lead to the accelerated transition to smart mobility.

Augmentation boost for public transport will result in better infrastructure at transit hubs hopefully including the often ignored parking lots.

Karan Chopra, Co-Founder, Doc On Call

Healthcare budget increase is a great move by the government. Especially like the move away from sick care to a more holistic well being with a focus on preventive care. However the proof of the pudding will lie in implementation which hasn’t been great in the past. Would love to see how the government. thinks of accountability and non-performance.

Great move by the govt. Tax holidays and startup funds will go a long way in strengthening the startup ecosystem. Much needed especially amid pandemic.

Kanav Kahol, CEO, Divoc Labs

The budget has recognized the importance of health in India’s growth story. The total budget outlay for healthcare is 2.23 lakh crore, which is an increase of 137% from last year. This shows the commitment by the government to address not only the healthcare’s immediate and urgent needs but fundamentally develop a program to strengthen Indian healthcare system. This budget will set the precedent for future budgets which will use this year’s allocation as a baseline for future initiatives.

An allocation of Rs 35,400 Crores for vaccines shows the commitment beyond the initial phase of 30Cr  people and that the government may be considering expanding the vaccine program to cover the poor and the vulnerable.

With the commitment to increase healthHR, the government plans to bring in a National Allied Healthcare Bill which will streamline and support availability of skilled individuals in healthcare. This is a positive development which again can vastly increase the reach of healthcare in our vast country.

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