HomeBudget 2022Budget 2022-23: Startups Expectations

Budget 2022-23: Startups Expectations

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Startups expectations from Budget 2022: As Union Finance Minister Nirmala Sitharaman is all set to present her third Union Budget on February 1, 2022.

Here’s what the Startup founders expects from Finance Minister Nirmala Sitharaman:

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Shruti Aggarwal, Co-Founder, StashFin:

In the last Unicorn Report of 2021, there were as many as 13 female unicorn founders. To encourage more women to not only enter the fintech space, but also thrive, it will be encouraging if the budget generates avenues and an ecosystem for them by introducing tax incentives such as standard deduction, and easy accessibility of funds, especially for early-age women run ventures that have less than 10 employees. This will give an impetus to the overall community, allowing every woman entrepreneur to be financially empowered by these solutions.

Sanya Goel, Co-founder, Humsafar Diesel:

The Diesel Door Delivery Startup Sector initiated in 2019, MOP&NG and DPIIT have enabled investment of approximately Rs 400 crores, including 1000+ bowsers. However, diesel sales are yet to take off in a big way and that is making investors desperate. To initiate the second phase of deregulation the Government needs to liberalize, add more categories of customer segments, and nudge oil marketing companies in the right direction. As a Startup, the Government needs to do much more to let the startup blossom, and nurture and use the scope for employment they offer. India has huge strength in terms of skilled Tech workforce which few countries can boast. We need to let Tech applications proliferate usage in a much bigger way if the country benefits from it. We also need larger booster funds for early-stage startups or a different tax regime for startups.

There is a need to put a curb on taxes collected as prices go up. The industry has suffered very badly because of ad valorem taxes on petrol and diesel as crude prices have climbed up in the last couple of years. It was a double whammy as it created pressure on demand and margin for Petrol pump Dealers and cost pressure on customers at large. It needs to be reversed immediately

Navneet Gupta, Founder & CEO, YPay:

Extension of the tax holiday for startups would be a great way for the government to show its commitment towards building a robust and dynamic startup environment. Investment into infrastructure that would promote digital payments needs to continue rapidly. There is so much unexplored potential in Tier-2 and 3 cities, let alone villages. The pace of investment only needs to go up if this potential is to be meaningfully utilized. For Neobanks and PPI companies such as ours, the idiosyncrasies of and changes in KYC requirements are actually a major nuisance. KYC norms lead to several problems such as registration issues for customers. And finally, the government needs to see the fintech industry as a partner in helping formalize the economy and getting banking services to those who do not have access to them.

Lalit Mehta, Co-founder & CEO, Decimal Technologies:

We have also seen a rise in the number of start-ups who have turned unicorns in the last year that showcases the potential of the startup ecosystem in India. 

We expect the government to introduce regulatory changes that would create an easy line of access for start-ups & MSMEs to secure credit from online lending players. This will further help in boosting our economy.

Punit Sindhwani, CEO, Paxcom:

The last two years have been challenging, especially for SMB, but have also provided opportunities for businesses that were able to successfully embrace eCommerce and Digital Payments. For SMB to survive and thrive, a greater impetus is needed to provide digital tools, training and guidance. Our expectation from the union budget is financial support/incentives, particularly for small and medium-sized businesses, to help accelerate the digital India vision.

Chayan Mukhopadhyay, Co-founder & CEO, Qandle:

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Our current tax system in a way penalises investing in unlisted companies for long term capital gain when an investor is actually taking higher risk, and eventually his investment is creating more jobs in the market. We need a more friendly capital gain tax system that also encourages easy access to capital. Additionally, the reforms should be such that Indian startups do not feel the need to incorporate outside India, which otherwise is a rising trend.

Sushant Gupta, Founder & CEO, SG Analytics:

In order to make startups an equally lucrative opportunity for job seekers, we suggest the government revisit the definition of start-ups and ESOP Taxation. It might be more relevant if ESOPs are taxed only during the time of sale. In addition to this, exception of SEZ from long-term capital gains would boost the stock market, and encourage foreign investments inflow in the country.

Dr. Rashi Gupta, Chief Data Scientist and Co-Founder, Rezo.ai:

It was amazing to hear India’s Prime Minister, Narendra Modi, speak about startups in one of his recent national addresses, so close before the budget. The National Startups Day, which was celebrated on January 16th, was a wonderful initiative to celebrate entrepreneurship. We are encouraged by Shri Narendra Modi’s leadership qualities and his goal to transform India into an economic superpower. We anticipate a next-generation reform budget in this year’s budget, which will boost startup confidence in the country. We urge the Indian government to consider launching more incubator and accelerator programs to help companies across the country. We also request them to look at FDI tax relief measures so that startups all throughout the country can access foreign capital with more ease.

Abhishek Gagneja, Founder, Yoga Brands:

Not undermining the death and devastation Covid-19 has caused, it has been a key driver for Digital and D2C Start-ups which have thrived despite the lockdowns and attracted massive funding in 2021. These disruptive business models have great potential to lead India towards economic growth, innovation, ease of living, livelihoods, and a digital economy. At the same time, it could lead to a bubble if not supported by tax and administrative reforms as sooner or later Investors will expect these companies to become profitable.

While the societal thinking shift is happening from job seekers (be it private or Government) to job creators, the Indian Entrepreneurs need to be celebrated rather than demonised by tax sleuths and media. A significant number of issues need to be addressed and rationalised GST compliances, costs of compliances, speed of IP & trademark approval these issues hinder growth of start-ups and MSME.  LLP and Partnership firms are preferred by entrepreneurs because of lower initial cost and compliance, however higher direct tax and exclusion of them in several scheme’s need to be relooked. For funded ventures, capital gains (short term and long term) need simplification and revision, a lot of businesses are forced to set up controlling entities overseas to avoid these.

Vivek Banka, Founding Team, Goalteller:

As the old adage goes “No News is Good News”. As a startup founder, I think there are a lot of tailwinds that exist in terms of ample liquidity, regulatory changes and broad based digital adoption. Other benefits have also been passed on over the last many years for startups and small businesses and hence my expectations towards this year’s budget is status quo which in itself would bode well for everyone in the ecosystem. 

Whether it be personal taxes, corporate taxes or capital gain taxes the regime should be made easier and progressively lower as the government has themselves stated earlier. Focus we believe should continue to remain on more transparency, greater compliance and finally easier rules of doing business, whether it be relaxed norms or government portals working smoothly every single thing that helps empower startups with easier processes eventually helps us save time and money.

Himanshu Periwal, Co-founder, Unlu:

The government has of late surpassed expectations of entrepreneurs with their acute focus on the Indian startup ecosystem. We have high expectations from the budget, especially with regards to the edtech and creator tech segments, which are allowing innovation in learning during these distressed times of pandemic! With regards to learning amongst college students and young professionals, we expect the government to encourage universities to integrate new-age skills in their curriculum and to allow startups to become part of the Skill Development governing bodies, such as NSDC (national skill development corporation), MSDE (Ministry of Skill Development and Entrepreneurship), etc. 

This will ensure the innovations of new age startups are able to impact the learning ecosystem in India at scale. Overall for the edtech ecosystem, which is still in its nascent stages and expanding at a high growth rate, we expect the government to support the same with lowered GST and a higher FDI allowance, which can further help boost its growth.

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COP28 UAE: SANY Promotes Green Manufacturing Transformation, Takes Concrete Action to Tackle Climate Challenges

CHANGSHA, China, Nov. 23, 2023 /PRNewswire/ -- SANY Group, ("SANY"), a globally leading enterprise of the high-end equipment manufacturing industry, is accentuating advancing sustainable development and the green manufacturing transformation of the heavy machinery industry, ahead of the COP28 UAE, that is set to take place from November 30 to December 12 in Dubai. The theme of the 13-day program this year is "Actionism," calling for people to rise to meet the climate change challenges.

The COP28 will center on four major paradigm shifts – namely accelerating the transition from fossil fuels, agreeing on climate finance shifts, emphasizing the role of people and nature in climate action, and ensuring the summit is an inclusive event that women, indigenous people, local communities, youth, countries and more can all be a part of.

SANY is responding actively and positively to the summit's agenda with concrete actions to promote the transformation of green manufacturing, bringing sustainable solutions to the industries of mining, construction, wind power, and more.

Taking green actions to build a sustainable future

SANY is vigorously expanding the use of green energy (renewables such as solar and wind) in production processes to reduce the reliance on traditional energy sources, lower carbon emissions, and support climate change actions. It has adopted multiple initiatives, especially in accelerating the R&D and application of wind energy, hydrogen, and electrification solutions, and achieved significant results.

SANY's subsidiary SANY Renewable Energy has been investing in and constructing wind farms to boost the proportion of wind power in the energy structure, through intelligent upgrades in manufacturing and creating intelligent workshops. By doing this, SANY Renewable Energy has reduced the overall unit energy consumption and carbon emissions by 15 percent compared to pre-upgrade.

In 2022, SANY has added more than 3,000 energy metering connections. SANY built China's first intelligent mixing station park and invested 3.22 million yuan in photovoltaic construction that will produce 900,000 kWh of power annually. The park will cut 887 tons of carbon emission, 242 tons of dust emissions, 26.7 tons of sulfide, and 13.4 tons of nitric oxide to achieve synergetic development of intelligent manufacturing and environmental conservation.

A total of 11 subsidiaries of SANY have installed photovoltaic power generation equipment, with clean energy usage amounting to 16.013 million kWh.

SANY is actively engaged in the R&D of hydrogen fuel cell technology to improve battery efficiency, reduce cost, and boost the production and storage capabilities, while expanding the applications of hydrogen energy.

Innovation-driven climate action tackles industry bottlenecks

Through establishing a green supply chain, SANY adopts renewable materials and environmentally friendly technologies to reduce resource waste and improve the sustainability of the supply chain.

SANY continues to improve the long-term mechanism for pollution prevention and control, strengthen the control of waste emissions including water, gas, and other hazardous substances, and be cautious of business and operation actions that could damage the ecological environment. In 2022, the group's wastewater and gas emissions met the standard rate of 100 percent, with a 100 percent compliance rate for hazardous waste disposal.

The group is also pushing for using environment-friendly materials to minimize pollution, so that the carbon reduction throughout the product life cycle also includes materials. In 2022, its VOCs emission density was 0.0011 tons per million revenue, a 39.71 percent reduction from the base year.

Meanwhile, the continuous upgrade of production techniques and processes, promotion of energy conservation technologies, and advancement of low-carbon technology development are not only playing key roles in improving production efficiency, but also reducing carbon footprint and aims to reach the "dual-carbon" goals.

Calling for the public's participation

SANY has been carrying out training programs and campaigns centered on environmental protection for employees, while further raising community engagement in terms of green, low-carbon, community-friendly, and educational innovation agendas. In 2022, the company employees completed 687.4 hours of volunteer work, and SANY invested 9.75 million yuan in the year to support 15 public welfare projects.

SANY Construction Industry is leading the green technology application in urban infrastructure construction to accelerate the sustainable development of cities and building intelligent cities, green transportation systems, and energy-conserving architectures to reduce energy consumption, improving urban environment quality and people's livelihoods.

In terms of biodiversity and sustainable development, SANY emphasizes the conservation of soil, ocean, crops, and animals to create a better future, and advocates a circular economy to decrease the waste of resources.

In the context of increasingly severe issues of global climate change, SANY, as a leader in the green industry, is committed to promoting sustainable development and actively joining global efforts to address climate change through comprehensive initiatives such as green supply chains, green energy, and carbon emission reduction.

For more information about SANY Group, please visit www.sanyglobal.com or follow us on Facebook or YouTube.

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