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Before the Finance Minister Nirmala Sitharaman presents the Union Budget in the Parliament on February 1, 2021.
Here’s what the Startups expects from Finance Minister Nirmala Sitharaman:
Tarun Chugh, Founder of Shinysleep:
I am very eager and looking forward to this year’s budget. While 2020 brought testing times for everyone, India’s startup ecosystem has shown utmost resilience; adapting to the new normal deftly. The companies in the startup ecosystem play a significant role in transforming India’s image from being a slow-moving economy to a Nation of innovative players and entrepreneurs in providing world-class technology and business services.
We are optimistic that with this Union Budget 2021, the government will take steps to strengthen the regulatory & security framework for providing a secure cyberspace ecosystem and new advancing policy developments for the budding startups. At the same time, the government must also look at providing sufficient support – financial and infrastructural to new and budding startups under the Startup India program.
Pankit Desai, Co-founder CEO, Sequretek:
As 2020 pushed businesses to adopt digital transformation, it was also a year of the highest number of cyber attacks on Indian companies and even some govt agencies. Indian startups are specially on the radar of some notorious threat actors. Union Budget would be the right platform to address the need for implementing cybersecurity mechanisms and if FM can announce an Indian cybersecurity mission that will help tech startups to adopt a cybersecurity policy with a defined framework.
Sasidhar Nandigam, Co-founder & CSO- CredR:
“The government has announced few critical measures for the startups which is a welcome move.
I think the government should create a favorable ecosystem so that smaller to big startups can survive such a global phenomenon. A greater boost is required in order to promote more entrepreneurs & startups in our country.
We also expect changes in personal taxation so that more disposable income is left with Individuals and this way consumer consumption can be increased.”
Pankit Desai, Co-founder CEO, Sequretek:
“WRT to business growth, Budget 2021 should make efforts for startups of Indian origin to get a preference in procurement, though there are certain guiding principles, they haven’t been enforced as yet.
The startup community will be looking at the budget expecting means and mechanisms to attract the right investors, the right talent, and the right opportunities to script a new, safe chapter in the Indian business ecosystem.”
Rajat Singhania, Founder of HyLyt by SocioRAC:
“last year Covid has impacted most of the startups who are struggling with revenue & cash flow and the government has provided much needed initiatives for their growth. I am hopeful that the government would bring benefits to the startups this year too.
We also welcome the Startup India Action plan announced by PM Modi recently. The initiatives such as tax reliefs, self-certification compliance, rebate on filing a patent and simplifying patent regime are welcome steps.”
Pranav Sharma, Founding Partner, Woodstock Funds:
The key focus for the Union Budget 2021-22 should be to push for economic revival and double down on the focus towards start-ups and emerging technology such as Blockchain, Artificial Intelligence, Digital Ledger Technology (DLT) among others. India has marked its intentions to climb the ropes of innovation with the remarkable jump to becoming the 52nd most innovative country on the Global Innovation Index and the 21,778 start-ups recognized under the government’s Startup India Initiative have been pivotal to this growth story.
Despite the pandemic, emerging technologies like DLT and blockchain have been sunrise sectors that have provided multiple job opportunities and financial stability to many in the country. Providing the right kind of financial assistance along with regulatory clarity focussing on reforms that enable ease of doing business aided by positive regulatory support will be critical to ensure that India is at the center of the fourth industrial revolution.
Initiatives like setting up a fintech sandbox for more proactive initiatives to regulate the blockchain and DLT sector and increased government funding for star-ups in the emerging tech space will be instrumental in reviving the economy with these futuristic technologies and bring them.”
Deepak Gupta, Founding Partner, WEH Ventures :
“One area which has implications for growth and job creation is the ease of doing business (“EODB”). Within that India lags substantially relative to most in the area of enforcement of contracts- there are many elements to resolving this issue- from accelerated recruitment of judges to improvement of arbitration processes and others. We hope that action can be taken on this front in short order with specific pronouncements in the budget and follow-up from thereon.
Other things in EODB can also be pursued- e.g the websites of government agencies that deal with the public tend to have downtimes (sometimes at peak filing season)- an impetus on measuring the user experience and uptime and targeting improvement could perhaps save time and give us a leg-up in EODB.”
Dr. Harshit Jain, Founder, and CEO, Doceree:
The government’s priority in the budget this time around would be to boost the economy which got severely hit due to the unprecedented COVID-19 pandemic. Start-ups are an important component of the economy and would play a crucial role in driving it forward. As we are present in two markets – the US and India – I think the US government is more supportive of start-ups in terms of financing and I would seek the same kind of support in India with respect to access to capital and access to cheaper credit.
The cost of capital in India is apparently highest compared to other markets and a lot of paperwork and approvals are required that make the entire process very cumbersome. The government should make the process of raising funds and related procedures easier and less laborious so that start-ups, especially early age start-ups, could be at ease and feel supported.
Rajat Jadhav, Co-founder, Bold Care:
“First and foremost, we laud the government’s recent move towards allocating 1000 crores for seed funding start-ups in India. And yes, while it will boost the start-up ecosystem, 2020 has been a rather stifling year and we are hopeful that Union Budget 2021 will succor the sector. There is an increased need for simplification of GST structure and easing of taxes to help start-ups and MSMEs crusade through shortcomings caused due to liquidity gaps. Also, start-ups must be exempted from compliances pertaining to taxes, filings, and the corresponding paperwork at least for the first 20 months so that they can pivot their energies towards business and operations.
Focus on ease of doing businesses will attract foreign and domestic investors and will create a well-cushioned environment for start-ups expediting their scope of growth, ensuring long – term survival, and strengthening their footing in the market. Additionally, with the pandemic heralding a new wave of digital transformation, emphasis on incentivization and fortification of digital infrastructure will go a long way in ushering innovation and accelerating growth.”
Shivjeet Ghatge, CEO & Co-Founder, StepSetGo:
“The Indian startup ecosystem has played a pivotal role in the country’s economic growth, especially given the tumultuous year it’s seen in 2020. We’ve come out to become the third-largest robust startup landscape after the US and China and have churned out a staggering number of unicorns in the last few years. So for startups to continue to accelerate and build on this momentum, the budget this year will have to meet expectations that will enable this progress.
A focal point for startups is the availability of working capital. While according to NASSCOM the investment ecosystem is set to return to its pre-pandemic levels, if not exceed it, a mobilized framework for funding would be a great start that would increase the ease of inflow and outflow for foreign investors. Considering the size of the Indian software exports, we are hopeful that this year’s budget increases the prioritization of growth opportunities and incentives for indigenous, homegrown brands. For the startup industry, initiatives like ‘Make in India’ have helped put Indian tech companies at the forefront and drove international visibility”
Mr. Amit Nigam, COO & Executive Director of BANKIT:
“2021 budget is possibly going to be one of the most crucial budget announcements we’ve had as a country in recent times. The last year was a year of survival and challenges, although it has sparked the startup industry and entrepreneurs working to strive in these challenging times.
So this time, we are expecting some relief and special measures to be taken by our government to revive the economy and help the startup to grow financially. The major pointer to look forward to in the upcoming budget is the ease in taxes which can help lessen up the burden from small and new businesses.”
Mr. Shubhradeep Nandi, CEO & Co-Founder, PiChain Labs:
There is a need to integrate technology-driven startups in its action plan to boost the financial wellbeing of Rural India. This year’s Budget gives us hope of better regulation for the startups dedicated to Bharat Inclusion, which will help in attracting more foreign investment. We believe that an increase in expenditure to further the financial accessibility to unbanked & underbanked is crucial at this juncture, and India, currently, is lagging. Bharat needs equal, easy, and affordable access to quality financial products customized and built for Rural India.
As far as taxes are concerned, today, the GST we are paying is as high as 18 percent. But, in the upcoming Budget, we hope that this is corrected, given the increasing importance of financial wellness becoming a lifestyle as opposed to a vanity metric. The provisions drafted must require no major changes for at least five years. This would reduce the compliance burden on startups and make management easier. Wherever needed, corrective changes need to be made to make implementation easier.
Mr. Akshay Singhal, Founder, Log 9 materials:
I think for startups there are already a lot of initiatives in action, improved mechanisms for the execution of those schemes is extremely important. However, I am more concerned about the economy as a whole. To boost the economy my suggestion would be to increase spending under Swachh Bharat Scheme may be via MNREGA to get Indian cities clean by employing the bottom of the pyramid.
Keerthivasan Subramanian- Founder & CEO, Playtoome:
“Due to the pandemic, the funding has dried up in the startup sector. This has already resulted in aspiring entrepreneurs deferring their businesses and launches. The situation is making it challenging for early-stage startups too which have just sprouted and need a constant working capital resource. Also, there has been a reduction in foreign investments. It is very important for the budget to take under consideration the difficult times that the new startups are going through and announce steps that would encourage the inflow of financial support to put the wheel in motion again.”