The Union Finance Minister Nirmala Sitharaman has presented a holistic budget and it is an extension of ambitious schemes announced by the government for doubling farmers’ income, infra boost, etc. This instils confidence in the industry that the government is serious about its programs and deadlines, writes Ritesh Jain – Co-Founder at FlexiLoans.com, commenting on Budget 2020 announcement on the MSMEs and the impact of the same on the Fintechs.
“If these schemes are successfully executed it will put the economy on a growth path and create demand in the economy. This budget also supports MSME focused Fintechs like FlexiLoans.com by (i) extending provisions of subordinated debt to entrepreneurs focused on MSME’s, (ii) extension of provisions CGTSME scheme, (iii) mechanism to solve for liquidity crunch for NBFC’s and (iv) allowing NBFC’s to participate on Treds,” he adds.
Fintechs can take benefit of this growth stimulus and SME focused initiatives.
Technology that has now a greater significance in almost all the sectors was also a pivotal part of Union Budget announcements. Commenting on the importance of Artificial Intelligence, IoT, Machine Learning, and other technological developments and technology gaining significance in today’s Digital Era Abhishek Kothari – Co-Founder at FlexiLoans.com says, “The Union Budget 2020 has shown a ray of light for the Fintech sector, with FM Nirmala Sitharaman stating that India will embrace a shared economy with aggregators displacing regular business. The importance of Analytics, IoT, and AI has been recognized in this budget, as they are set to change the world. A policy has been announced to set-up data centre parks all through the country.”
“Furthermore, she went on to add that public institutions, which are at Gram Panchayat level, will be provided with digital connectivity, as Fibre to home will link over 100,000 Gram Panchayats in FY21, through BharatNet. For this, Rs 6,000 crore have been allocated to BharatNet. Moreover, Rs 8,000 crore is also being allocated to set up for National Mission on Quantum Computing and Technology,” says Kothari.
“It is good to see technology find a significant mention in the budget. If done correctly, setting up Data Centre Parks, Fibre to home and investments in quantum computing, have the ability to create a digital connected India. The proof is always in the execution,” he adds.