Budget 2019 expectations: Startup India community wants Modi government to take these steps

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New Delhi | Updated: July 3, 2019 11:29:09 PM

Budget 2019 India: Persons, who run different types of startups, have suggested that in India Budget 2019, the Central government should announce a policy that doesn't hurt the startup ecosystem.

Budget 2019 indiaUnion Budget 2019 India: In Interim Budget 2019, the then Finance Minister Piyush Goyal announced that the government was aiming to construct one lakh digital villages in the next 5 years.

Budget 2019 expectations: Startup India community is expecting key announcements from the Modi government in the upcoming Union Budget 2019 which will be presented on July 5. This comes after Prime Minister Narendra Modi in BJP’s manifesto for Lok Sabha elections 2019 promised “simplifying and lowing tax rates” for entrepreneurship and innovation.

Talking to Financial Express Online, persons, who run different types of startups, have suggested that in India Budget 2019, the Central government should announce a policy that doesn’t hurt the startup ecosystem and at the same time provides a boost to startup community. In Interim Budget 2019, the then Finance Minister Piyush Goyal announced that the government was aiming to construct one lakh digital villages in the next 5 years. The startup sector welcomed this step.

“The angel tax caused a lot of heartburn in the ecosystem. While the tax was abolished, we should be careful of any policy that hurts the startup ecosystem. In this day and age of technology, a lot of the innovation will be seen from startups rather than larger established companies. Anything that hampers this innovation will hamper India’s future growth. The Modi government in Budget 2019 should do everything in its power to help fuel innovation in India and ban policies that hamper such future growth,” Mayank Bidawatka and Aprameya Radhakrishna, Co founder at Vokal, said.

“Considering the potential dairy has in providing good nutrition in an affordable manner, we believe that the government should incentivize the sector for promoting higher consumption. Tax reductions in value-added dairy products would accelerate higher adoption thereby encouraging more investment into product’s research and development that can further help dairy consumption. Incentives to SMEs in building cold chain infrastructures, that are critical for the sector, would help reduce wastage and improve the quality of the products. In addition to that, enable R&D centres and pilot scale facilities to support innovation into new products and packaging formats,” Gaurav Haran, CEO of MilkLane, said while talking about Union Budget Expectation from a Dairy start-up.

“We expect ease in regulatory norms from the Union Budget as start-up has to go through a numerous compliances that are put in place by various regulatory bodies. Start-ups are also facing a knowledge gap as there are multiple points of contact. I am not saying that compliances are not important but it becomes tedious, time-consuming and costly. A single window clearance is expected from the Government that will smoothen the process and save cost for start-ups. The process of smoothening the tax issues in funding was started and we expect that there will be a fast implementation of the procedures to ease startup funding. The momentum started with ‘Start-up India’ that enabled self-certification, income tax exemptions, rebate in filing patents, etc and we hope in the India Budget 2019 further boost will be given to the start-up ecosystem,” Rachit Chawla, Founder & CEO, Finway said.

PM Modi in BJP Manifesto 2019 said that the government would launch a new scheme to provide collateral-free credit up to 50 lakh for entrepreneurs and guaranteed 50 per cent of the loan amount for female entrepreneurs and 25 per cent of the loan amount for male entrepreneurs. PM Modi also promised to facilitate set up of 50,000 new startups in India by 2024. The central government would create a ‘Seed Startup Fund’ of Rs 20,000 crore, PM Modi said.

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