Chandigarh, Jan 28: Owing to the entrepreneurial spirit, India is emerging as one of the strongest economies globally. Being the third largest startup ecosystem in the world after the US and China, India can truly leapfrog as a startup capital of the world with the introduction of next generation reforms in the upcoming Budget, according to startup founders. Let's have a look on their expectations.
Set up Innovation Fund
A dedicated fund allocation for the infrastructure in rural areas should be set up to support the digitalisation of agriculture, as it will put the sector's growth on fast track. “An agri innovation fund, which supports agtech solutions, startups and digitalisation at different levels of the agri value chain can transform the agriculture economy in the future,” said Randhir Chauhan, MD, Netafim India and SVP Netafim.
“In the upcoming Budget, I hope to see a strong mandate for financial inclusion and assistance from the Government of India for startups attempting to bring in credit for all transcending language, literacy, location, livelihood like FlexPay,” said Anil Pinapala, CEO & founder of Vivifi India Finance. Also, relaxation in norms and assistance with liquidity to lending NBFC fintechs who offer credit to the under-served would be a welcome move, according to the industry.
PLI for smart wearables
India has emerged as one of the largest markets for smartwatches and the expected PLI scheme for the high-end components manufacturing will further boost the industry. “Being one of the first homegrown brands to localise the production of smart wearables in India, adequate support towards the initiative would lead us to ramp up our Make in India efforts and contribute effectively towards this mission,” said Amit Khatri, co-founder, Noise.
Cut Minimum Alternate Tax
According to founders, the startups will find it easier to fulfil their daily working capital needs if the minimum alternative tax (MAT) for qualifying enterprises is reduced from 15% to 9%. This is especially true in the early stages. “Other key measures to be taken include providing single-window clearance for start-ups to claim exemptions under the Income Tax Act and extending 100% tax-breaks for a period of five years instead of three years at present,” said Amardeep S Tiwana, Startup consultant & communications strategist.
