Budget 2019 expectations: Startups want Rs 25 cr limit to be removed, access to cheaper cash infusion
Budget 2019 expectations: It would be interesting to see if the Narendra Modi-led NDA government continues to boost startups in its second tenure as it did in the first five years of its rule. And, a clear picture on the same would be available when Finance Minister Nirmala Sitharaman presents Union Budget 2019 on July 5.
Budget 2019 expectations: It would be interesting to see if the Narendra Modi-led NDA government continues to boost startups in its second tenure as it did in the first five years of its rule. And, a clear picture on the same would be available when Finance Minister Nirmala Sitharaman presents Union Budget 2019 on July 5. The government should do away with current limits like Rs 25 crore or made substantially higher from DIPP certified credible investors and start-ups to enable scalability, believes Rajan Navani, Vice Chairman & Managing Director, JetSynthesys.
"The last year has seen unprecedented growth of digitisation driven by simplification of technology, consumer and business behaviour change, and increase in affordable data and smartphones devices. The increasing adoption of new and emerging technologies like Artificial Intelligence (AI) are further driving business growth. With growing entrepreneurial aspirations in India, initiatives like Start-up India and Digital India are creating an enabling ecosystem to support start-ups, incubators, accelerators and co-working spaces," Rajan, who is also the Chairman of the Confederation of Indian Industry’s (CII) National Council on Future Businesses, Artificial Intelligence and India@75, said.
He added that the key expectation of start-ups from the budget is clarity and consistency on angel tax which will act as a powerful incentive for new and innovative businesses.
"Also, alterations/changes in regulations such as faster payment processing and relaxation in certain Goods and Services Tax (GST) norms will help build a conducive environment for early stage ventures. Overall, the start-up industry is looking at improvement in ease of doing business with a digital first approach to enable them scale up," he said.
Meanwhile, Prashant Garg, Country Manager – India, Garage Society urged the government to incentivize start up by giving access to cheaper cash infusion.
"Coworking firms are facilitators for growth of start ups by providing affordable and expandable work environment in prime locations. The government should look to incentivize start ups by abolishing angel tax and formulating policies to encourage start up growth, like access to cheaper cash infusion. Start ups in turn can be employment generators," he said.
Garg added that the government should also provide input tax credit for work contacts and for construction services. "We hope new asset classes like Coworking and co-living will receive a boost in this budget," he said.