India SMB's Hope the Tech-Heavy Budget Will Help Overcome Their Business Challenges, Says AMI
The Government of India's Union Budget 2016 has offered tax exemptions for small business units with a turnover of up to Rs 2 crore (up from the earlier exemption limit of 1 crore), which will act as a stimulus for these units to expand their business. In addition, to boost economic growth and employment a 100% deduction of profits for 3 out of 5 years for start-ups, for the period from April 2016 to March 2019 has also been announced;
Kolkata, India, March 8, 2016 (Newswire.com) - Small and medium businesses (defined as having between 1-999 employees) have been central to the success of most major IT vendors in India and are a key target segment. Businesses within this segment - feel the need to keep up with the technological progress in their industry to adhere to global standards. However, these SMBs are unable to bear the financial burden of additional investments in technology. AMI-Partners’ India Small and Medium Business ICT & Cloud Services Tracker Overview shows restricted cash flow, tightened credit lines and lower revenues are the major business challenges faced by India SMBs today.
The Government of India’s Union Budget 2016 has offered tax exemptions for small business units with a turnover of up to Rs 2 crore (up from the earlier exemption limit of 1 crore), which will act as a stimulus for these units to expand their business. In addition, to boost economic growth and employment a 100% deduction of profits for 3 out of 5 years for start-ups, for the period from April 2016 to March 2019 has also been announced. “This has created a positive impact. Close to 60% of SMBs report anticipating an increase in their IT spending up to 9% in the coming quarters.” commented Partha Sarathi Sengupta, AVP at AMI-Partners.
"It is significant that most start ups are digital-based and usage of social media is rapidly on the rise among SMBs".
Partha Sengupta, AVP at AMI-Partners
Spurred by the ‘Digital India’ revolution, the SMB sector is poised to act as a catalyst to bring about socio-economic transformation. “It is significant that most start ups are digital-based and usage of social media is rapidly on the rise among SMBs” added Sengupta.
Encouragement by the Union Government in terms of initiatives such as the presumption taxation scheme, skilling India, MUDRA scheme and service tax exemptions combined with initiatives taken by corporate to boost digitization, can be a game changer.
Related Study
AMI’s recently published “2015-16 India SMB ICT & Cloud Services Tracker Overview” provides marketing and product executives the insights to effectively enhance/tweak their go-to-market approach within India SMBs for a greater bottom line impact. The study examines India SMBs’ business needs, including ICT priorities, purchase channel preferences and buying behavior at a granular level. The analysis also delves into numerous individual ICT categories (e.g. computing hardware & networking infrastructure, software, security, storage and internet/telecommunications) – both cloud and on-premise solutions. It further provides a clear sense of the overall market opportunity/outlook for each and the forces shaping that specific category. Shifts in the India SMB ICT landscape – including purchase channels – are highlighted and illustrate how vendors can best leverage those shifts to deliver solutions profitably.
For more information about this study, AMI, or our global SMB research, call 212 944 5100, e-mail ask_ami@ami-partners.com or visit www.ami-partners.com.
About Access Markets International (AMI) Partners, Inc.
AMI specializes in IT, Internet, telecommunications and business services strategy, venture capital, and actionable market intelligence — with a strong focus on global small and medium businesses (SMBs), and extending into large enterprises and home-based businesses. AMI-Partners’ mission is to empower clients for success with the highest quality data, business strategy perspectives and ―go-to-market solutions. Led by Andy Bose, the firm has built a world-class management team with deep experience cutting across IT, telecommunications and business services sectors in established and emerging markets.
AMI has helped shape the go-to-market SMB strategies of more than 150 leading IT, Internet, telecommunications and business services companies. The firm is well known for its IT and Internet adoption-based segmentation of the SMB markets; its annual retainership services based on global SMB tracking surveys in more than 25 countries; and its proprietary database of SMBs and SMB channel partners in the Americas, Europe and Asia-Pacific. The firm invests significantly in collecting survey based information from several thousand SMBs annually, and is considered the premier source for global SMB trends and analysis.
Media Contacts:
Quoted Analyst: Partha Sengupta. Phone: (33)4003 3093 ext 215. Email: psengupta@ami-partners.com
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In India (Kolkata): Jyoti Singh. Phone: (91) 33 4003 3093 ext 223. Email: jsingh@ami-partners.com
In India (Bangalore): Rati Ghose. Phone: (91) 80 4148 2661 ext 36. Email: rghose@ami-partners.com
In India (Mumbai): Neha Jalan Goenka. Phone: (91) 98209 67614. Email: njalan@ami-partners.com