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Union Budget 2019: Expectations from Indian Organizations including Startups

New Delhi, July 03, 2019- India's much awaited Union Budget for the fiscal year 2019-20 will be presented by the Finance Minister Nirmala Sitharaman on July 05, 2019. This budget is expected to lay focus on start-up eco-system in the country and announce various incentives for the next few years.

Here are some of the organizations in India including start-ups with their expectations from this year's budget (Fiscal 2019-20)

Nishant Pitti, Co-Founder & CEO, EaseMyTrip: “Travel and tourism industry in India accounts for more than 9% of the GDP of India and creates great opportunities for employment and foreign-exchange. So, I believe that government will definitely focus on this sector in Union Budget of 2019. There should be fund allotment for the infrastructural developments, be it the airports and railway stations, tourist places or other facilities. In fact, major initiatives should also be taken to promote our heritage destinations on global level. There must be no delay in refund of GST since the postponement in the refund blocks the working capital and creates stress for the industry. From this budget as well, I am expecting the continuation of tax immunity for start-ups and small enterprises. This will help them in grow more.”

Vipin Raghavan, Co-founder and CEO, Haber: “At Haber, we would love to see the Indian government reward startups for R&D investments. Haber is creating cutting edge technology, some of which solve problems unique to Indian industry. It would be great to see the Indian government back us and other innovators - one way is an R&D tax credit similar to those seen in some of the other economies like the US and Switzerland or increase the allowable deduction which is now 1.5 times” Vipin Raghavan, Co-Founder and CEO of Haber, a robotics-as-a-service company.”

Kabir Siddiq, Founder, SleepyCat: “The government is now stronger post the electoral bout and we are hoping for stronger leaps on transformation, particularly in the startup space. There definitely have been various schemes set up for startups, and it is easier to do business as well. However, we believe it could be made better. Ease in regulatory access is what we look forward to. There are a lot of compliance and documents to be submitted by one corporation to a large number of departments in order to cover PF, employee benefits, and other licenses etc. We are hoping for reforms in filling of compliance and other tax reforms that would ease the burden for small and medium enterprises, as well integration with other ERP solutions to make things easier on the GST front.

Looking forward to the new Finance ministers effort in crowdsourcing information. Hope that would lead to some good democratic decisions.”

Sadiq Sait, Founder and Chief Executive Officer, uLektz Learning Solutions: "As per the Public Procurement Policy for MSEs Order 2012, the Central Ministries, Central Departments and CPSUs have to mandatorily procure at least 20% from Micro & Small Enterprises including Startups. It would be very helpful for the startups, if a mechanism is created to audit and ascertain that this policy is strictly followed by the Government agencies. Also, for startups doing business with the government and collecting payments are still challenging even after introducing MSME Samadhaan - Delayed Payment Monitoring System." 

Ajoy Khandheria, Founder, Gramin Healthcare: "Ensuring accessible, good quality healthcare in rural India remains the biggest challenge in the healthcare sector. The government needs to direct financial resources to build the primary healthcare infrastructure in rural and remote areas, and that is difficult unless public spending on healthcare goes up from 1.15%. When over two-thirds of the sector is driven by private players, the government should be more willing to get into a partnership-based approach with them to achieve universal health coverage in line with the UN’s sustainable development goals. We also want the government to increase the tax exemption for preventive health checkups and promote preventive care practices to bring down the disease burden of non-communicable diseases, which are currently responsible for 61% of deaths in the country. We also need their support to help reduce our dependence on China for Active Pharmaceutical Ingredients. It will bring down the manufacturing cost and market price of drugs, and make them more affordable for people living in remote/rural areas."

Satkam Divya, CEO, KLINICAPP: “Today India is facing a triple burden of malnourishment that is underweight, overweight & micronutrient deficiency. In the past decade, it has become a prime concern for the healthcare facilities since the burden is observed mostly in the youth and that is somehow affecting the overall Economy of the country.

Since all these problems can be sorted at the elementary level but due to the lack of facilities today, problems like these remain undetected. The budget of healthcare 2019 is expected to create public healthcare facilities in small towns and rural areas where it is difficult to treat people that can be easily cured if the problem is found in time. There should be the availability of easy loans for setting up of viable healthcare infrastructures in smaller cities and towns.

It is also observed that the medical facilities provided by the government cannot meet the demands of the top tier hospitals and also that 80% of the medical facilities are heavy on the pockets of the normal individual. About 50% of the expenditure that is heavy on the pocket goes from loans that eventually cause financial debt on the Indians. Therefore, it is necessary to create cheaper and easily affordable healthcare facilities.

Coming back to the triple burden faced by Indians today these issues can be sorted easily if one makes a little more effort for the lower strata without ignoring the fact that there are many facilities already available for the people. It all comes down to how aware the person is for their right towards a healthy lifestyle. This also opens up a new sector within the public health expectation of door to door errands for a better gap filling that is present between the present facilities and the people who need them.”

The ground level orientation is very necessary that is the part where the selection of the healthcare professionals arrives and also the institutional shortcomings need to be looked upon. Elaborating the point: the medical colleges that have begun to set up at every corner and every street need to stop since quality education and quality professionals are needed for the people of our country.

Ayushman Bharat is an excellent step towards universal healthcare in India but needs to accommodate tertiary health care facilities. The expectation of people needs to meet along with the expectation of healthcare professionals.

As per the majority of the healthcare professionals at the secondary and tertiary level, the basic problem arises at the primary level or the grass root level which is very week causing an overflow of patients at the higher level which ultimately leads to the need of strengthening the lower level.

Ultimately it all comes down to how well the primary level is equipped to help the people so that they are helped when the situation can be handled with ease, rather than pushing people to the point where they face problems that cause them a lifetime to overcome the debt of medical finances.”

Arijit Biswas, Co-Founder, EnrichA: "In the technology space, we are hoping that the government makes investments on Training & Seminars on AI & IOT for senior management of all leading industries in HealthCare, Energy, Automobiles and Agricultural sectors along with framing Unified National Policy to boost Blockchain innovation. We also expect financial incentives such as preferential tax rates and the tax holiday to be provided to companies relocating from China. This would help the businesses to conduct themselves in a composed manner even after relocating. We also expect the government to urge public sector undertakings to commit funds for indigenous startups to foster, nurture and incubate new ideas related to their respective sectors."

Anmol Kukreja, Co-Founder & CEO, Skillbox: “After the resounding mandate given to the Modi Govt. in the 2019 Union Election, we expect the government to unleash a series of economic reforms to turn India into an economic powerhouse. Start-ups will play a vital in this transformation by fostering innovation and generating employment. Therefore, we expect the government to maintain the momentum of the Start-Up India program by streamlining taxes and making GST and TDS filing on a quarterly basis for startups, who are currently reeling under the pressure of working capital crunch due to the monthly filing. It should also ease FDI and RBI rules and make the regulatory environment easier for start-ups who are raising funding overseas. Filings and compliances are quite cumbersome and we expect the government to make the process frictionless through an entirely online process. We believe going ‘cashless’ is the way to go to improve transparency in the country’s economy and reforms around that would be welcome. Last but not the least, the government should draft a new law to penalize parties who do not honor payments within 60 days of invoice raising. This will go a long way in improving trust between parties and make the country business friendly.”


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