Budget 2019 expectations: Startups demand revision in existing regulations, early stage funding
Budget 2019 expectations: During its first tenure, the Modi government consistently pushed startups in India especially through the Startup India initiative, which is an approach it is expected to follow in the second term as well.
Budget 2019 expectations: During its first tenure, the Modi government consistently pushed startups in India especially through the Startup India initiative, which is an approach it is expected to follow in the second term as well. The upcoming Union Budget will give a better insight into government's roadmap for the next five years but the Budget 2019 expectations from the startup industry are high. Geetika Dayal, Executive Director, TiE Delhi-NCR told Zee Business Online that the government should make more revisions to existing start-up regulations to provide the entrepreneurial ecosystem with the support it needs to thrive and grow.
"To begin with, it needs to do away with outdated taxes that are eating into their profitability and curtailing their growth potential. Indian entrepreneurs do not need handouts, but they do need incentives and provisions that can help them realise their business goals and drive accelerated scale for their business ventures. We hope that the re-elected government will continue to build on the good work that it has been doing for the start-up industry with more conducive policies in the upcoming budget," she said.
Meanwhile, Rashi Gupta, Chief Data Scientist and Co-founder, Rezo.AI urges the government to make early stage and growth capital more easily accessible for startups. "Also, relaxation in the regulatory compliance procedures and development of incubation centres to aid employment generation and spur growth will open dynamics for startups to propel. Since one of the major challenge faced by startups is on regulatory and compliance front, therefore, regulations should be made more friendly for startup companies and compliance regulation should ease," she said.
The government might introduce easy early stage funding and grants for tech start-ups working in the space of digital and financial inclusion, hopes Neel Juriasingani, CEO & Co-founder, Datacultr.
The government should also make sure that startups have a level playing field with other companies, more particularly listed companies where they can participate and win tenders for central and state government projects. Another key area that the GoI needs to address is GST compliance. We also expect the government to reduce tax rates creating a more welcoming ecosystem for the industry players. Policy regulations like these will allow entrepreneurs to devote their time, energy and resources to gain success and build upon more innovative ideas," Neel said.