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)
Karan
Ratti – CEO & CSO, Ratti Corporation & Melblok: Startup
incentives are key in this Budget if Jobs & Economic vibrancy has to be
created. Startups are new and unestablished business entities with little
operational stability and a lot of uncertainty, but they are also the fastest
job creators not just directly but also through acquisitions which enhance the
capabilities of larger established businesses. Incentivization for Startups
acts like a cocoon for them to mature and create economic prosperity.
Ratti – CEO & CSO, Ratti Corporation & Melblok: Startup
incentives are key in this Budget if Jobs & Economic vibrancy has to be
created. Startups are new and unestablished business entities with little
operational stability and a lot of uncertainty, but they are also the fastest
job creators not just directly but also through acquisitions which enhance the
capabilities of larger established businesses. Incentivization for Startups
acts like a cocoon for them to mature and create economic prosperity.
The
government is to be appreciated for bringing focus on Startups and should now
plow ahead to amplify this focus and relax several regulations that limit their
growth. Elimination of Angel Tax, GST post cash realization v/s post invoicing,
unburdening startups from numerous GST compliances, are some areas we would
like to see happen. But focus now on the Startups that involve Manufacturing is
Key. Issuing an Online platform for startups in the Manufacturing sector to
utilize for obtaining & renewing various Licenses, NOCs, and Permissions is
necessary to prevent wastage of the limited time and resources that startups
have as well as eliminate bribery & corruption that despite efforts still
remains at large. I am sure that startups would be happy to even pay for such a
service if it helps keep startups clear from commissioner/inspector raj in any
department.
government is to be appreciated for bringing focus on Startups and should now
plow ahead to amplify this focus and relax several regulations that limit their
growth. Elimination of Angel Tax, GST post cash realization v/s post invoicing,
unburdening startups from numerous GST compliances, are some areas we would
like to see happen. But focus now on the Startups that involve Manufacturing is
Key. Issuing an Online platform for startups in the Manufacturing sector to
utilize for obtaining & renewing various Licenses, NOCs, and Permissions is
necessary to prevent wastage of the limited time and resources that startups
have as well as eliminate bribery & corruption that despite efforts still
remains at large. I am sure that startups would be happy to even pay for such a
service if it helps keep startups clear from commissioner/inspector raj in any
department.
Abhishek
Deshpande, Co-founder of Recykal: “In the next budget,
Government should provision grants, create impact funds targeted at startups
working in the sustainability development areas like Waste management, Air
Pollution, Climate change etc. This will not only encourage new ideas, new
entrants in the space but create social, environmental, economic impact in the
long run”
Deshpande, Co-founder of Recykal: “In the next budget,
Government should provision grants, create impact funds targeted at startups
working in the sustainability development areas like Waste management, Air
Pollution, Climate change etc. This will not only encourage new ideas, new
entrants in the space but create social, environmental, economic impact in the
long run”
Rakshit
Desai, Managing Director, FCM Travel Solutions – Indian Subsidiary of Flight
Centre Travel Group: “According to the interim budget that was
announced earlier this year, India is poised to become a $5 trillion economy in
the next five years and is aspiring to become a $10 trillion economy in the
next 8 years thereafter. The interim budget had offered some promising initiatives
that will definitely augur well for the Indian Travel & Tourism industry.
Initiatives such as UDAAN, Eastern Peripheral Highway and several other
measures will boost not just domestic travel but also augment inbound tourism.
For example, increased connectivity in the North-Eastern region of India,
through rail, road and air (owing to projects such as UDAAN and Bogibeel
Bridge) and further proposed allocation of INR 58,166 crore will provide much
needed impetus to travel and tourism in the region.
Desai, Managing Director, FCM Travel Solutions – Indian Subsidiary of Flight
Centre Travel Group: “According to the interim budget that was
announced earlier this year, India is poised to become a $5 trillion economy in
the next five years and is aspiring to become a $10 trillion economy in the
next 8 years thereafter. The interim budget had offered some promising initiatives
that will definitely augur well for the Indian Travel & Tourism industry.
Initiatives such as UDAAN, Eastern Peripheral Highway and several other
measures will boost not just domestic travel but also augment inbound tourism.
For example, increased connectivity in the North-Eastern region of India,
through rail, road and air (owing to projects such as UDAAN and Bogibeel
Bridge) and further proposed allocation of INR 58,166 crore will provide much
needed impetus to travel and tourism in the region.
Additionally,
the fact that domestic passenger traffic has doubled during the last five years
shows that there is phenomenal growth expected in the travel industry. On the
whole, we expect that the Union Budget
2019-20 is promising for the travel industry, complemented by further tax
rebate for the middle-income group – more savings, more travel! A review of GST
is needed as GST on hotels varies according to room tariffs (18 % to 28%). Tax
on premium hotels in India is amongst the highest in the world, higher than
even hotels in New York, London or Paris.”
the fact that domestic passenger traffic has doubled during the last five years
shows that there is phenomenal growth expected in the travel industry. On the
whole, we expect that the Union Budget
2019-20 is promising for the travel industry, complemented by further tax
rebate for the middle-income group – more savings, more travel! A review of GST
is needed as GST on hotels varies according to room tariffs (18 % to 28%). Tax
on premium hotels in India is amongst the highest in the world, higher than
even hotels in New York, London or Paris.”
Vipul
Jain, CEO, Advancells: “We are eagerly waiting for the
first budget of Modi 2.0 Government. Over the last couple of years of the last
administration, the government had shown some serious commitment towards
healthcare with Ayushman Bharat and such schemes. We are hoping the new
government will take these agenda’s forward and there will be a push on new
innovations in then healthcare sector under Make in India and Startup India
programs.”
Jain, CEO, Advancells: “We are eagerly waiting for the
first budget of Modi 2.0 Government. Over the last couple of years of the last
administration, the government had shown some serious commitment towards
healthcare with Ayushman Bharat and such schemes. We are hoping the new
government will take these agenda’s forward and there will be a push on new
innovations in then healthcare sector under Make in India and Startup India
programs.”
Dhruvan
Barar, Co-founder, Boingg: “This
budget will be a marker of the government’s assessment and vision for the
economy. Union Budget 2019-2020’s allocation will determine whether E-commerce
and tech startup will work in sync with the government’s policy & Digital
India initiative. We believe that Finance Minister Nirmala Sitharaman’s budget
will incorporate and allocate resources for various initiatives announced in
the Interim Budget presented earlier this year. The abolishment of angel tax is
one step towards it. Expecting the budget to go easy on credit loan processes
and further provide a rebate in loan interest.”
Barar, Co-founder, Boingg: “This
budget will be a marker of the government’s assessment and vision for the
economy. Union Budget 2019-2020’s allocation will determine whether E-commerce
and tech startup will work in sync with the government’s policy & Digital
India initiative. We believe that Finance Minister Nirmala Sitharaman’s budget
will incorporate and allocate resources for various initiatives announced in
the Interim Budget presented earlier this year. The abolishment of angel tax is
one step towards it. Expecting the budget to go easy on credit loan processes
and further provide a rebate in loan interest.”
Gautam
Thapar, CEO, Thapar Builders Pvt Ltd: “On July 5th 2019, Finance
Minister Nirmala Sitharaman is expected to present 2019-2020 budget. It is
expected that the government should bring stimulus to boost the real
estate/construction industry. To further promote the sector incentives should
be given to buyers to buy 2nd home which will definitely promote the real
estate segment in the long run bringing smiles on the faces of the people
associated with it. In coming budget we expect the applicable GST on the real
estate to come down and should also bring down interest rate on home loans.
Also, as proposed remove income tax from rental housing – ensuring builders to
lease unsold inventory and hence it will help the government real it’s target
of housing for all.”
Thapar, CEO, Thapar Builders Pvt Ltd: “On July 5th 2019, Finance
Minister Nirmala Sitharaman is expected to present 2019-2020 budget. It is
expected that the government should bring stimulus to boost the real
estate/construction industry. To further promote the sector incentives should
be given to buyers to buy 2nd home which will definitely promote the real
estate segment in the long run bringing smiles on the faces of the people
associated with it. In coming budget we expect the applicable GST on the real
estate to come down and should also bring down interest rate on home loans.
Also, as proposed remove income tax from rental housing – ensuring builders to
lease unsold inventory and hence it will help the government real it’s target
of housing for all.”
Satanik
Roy, Co-founder, HyperXchange: “The growing use of the
internet and increasing dependency on smartphones has brought cheer to the
internet startup sector in India. However, rural areas of India still demand
better infrastructure to promote the penetration of smartphones. As the Indian economy
moves towards creating its global digital footprint, it is expected that the
Indian government will further promote penetration of smartphones by
incentivising refurbished and introducing schemes which will include installing
more wi-fi hotspots in rural and semi-urban areas. The UDAN (Ude Desh ka Aam
Naagrik) scheme can also be given a boost, which will enable companies and
startups to set up operations in smaller towns which will then indirectly lead
to bridging the urban-rural divide.”
Roy, Co-founder, HyperXchange: “The growing use of the
internet and increasing dependency on smartphones has brought cheer to the
internet startup sector in India. However, rural areas of India still demand
better infrastructure to promote the penetration of smartphones. As the Indian economy
moves towards creating its global digital footprint, it is expected that the
Indian government will further promote penetration of smartphones by
incentivising refurbished and introducing schemes which will include installing
more wi-fi hotspots in rural and semi-urban areas. The UDAN (Ude Desh ka Aam
Naagrik) scheme can also be given a boost, which will enable companies and
startups to set up operations in smaller towns which will then indirectly lead
to bridging the urban-rural divide.”
Ruhan Swain Rajput, Co-founder
& Director, EINFOLGE: “While 2018 Budget at least
acknowledged the issues of angel tax provisions and bring transparency into the
process, saying that ‘Venture capital funds and angel investors need an
innovative and special developmental and regulatory regime for their growth,”
the Interim Budget from February 2019 steered clear of the issue.
& Director, EINFOLGE: “While 2018 Budget at least
acknowledged the issues of angel tax provisions and bring transparency into the
process, saying that ‘Venture capital funds and angel investors need an
innovative and special developmental and regulatory regime for their growth,”
the Interim Budget from February 2019 steered clear of the issue.
But
there’s more work to be done to boost the ecosystem. The major concerns range
from incentive programmes for electric vehicles and cleantech, issues
pertaining to Section 56 (2)(viib) and Section 68 of the Income Tax Act, lack
of healthcare or defence-related innovation fund, GST issues, tax breathers for
eCommerce and FDI in e-pharma have remain neglected owing to the General
Elections 2019.
there’s more work to be done to boost the ecosystem. The major concerns range
from incentive programmes for electric vehicles and cleantech, issues
pertaining to Section 56 (2)(viib) and Section 68 of the Income Tax Act, lack
of healthcare or defence-related innovation fund, GST issues, tax breathers for
eCommerce and FDI in e-pharma have remain neglected owing to the General
Elections 2019.
However,
after a massive victory, the Modi government has a plethora of issues to deal
with including unemployment, economic crisis, US-Iran sanctions implications
and the trade war within WTO. Given this
Sitharaman will perhaps have very little room to stamp her authority while
presenting her first budget as the finance minister. In such a scenario, it’s
time to prioritise the start-up ecosystem’s demands from the finance minister
and the new government. Whether it is the budget allocation for Start-up
India’s fund of funds or prioritising tax reforms that directly affect the
start-up ecosystem.”
after a massive victory, the Modi government has a plethora of issues to deal
with including unemployment, economic crisis, US-Iran sanctions implications
and the trade war within WTO. Given this
Sitharaman will perhaps have very little room to stamp her authority while
presenting her first budget as the finance minister. In such a scenario, it’s
time to prioritise the start-up ecosystem’s demands from the finance minister
and the new government. Whether it is the budget allocation for Start-up
India’s fund of funds or prioritising tax reforms that directly affect the
start-up ecosystem.”
Vishal
Shah, Founder & MD, Storia Foods & Beverages Pvt. Ltd: “Five
months post the interim budget; consumption & rural demand has witnessed a
steep decline. Rural demand which was about 1.3 times urban demand has petered
down in the FMCG & Agriculture sector. Over 50% of our agriculture is still
rain fed, hence, there is an associated uncertainty leading to reduction in
growth. There is thus a need to increase the coverage of irrigation. Farmers in
drought-hit areas suffer the most in the absence of rain.
Shah, Founder & MD, Storia Foods & Beverages Pvt. Ltd: “Five
months post the interim budget; consumption & rural demand has witnessed a
steep decline. Rural demand which was about 1.3 times urban demand has petered
down in the FMCG & Agriculture sector. Over 50% of our agriculture is still
rain fed, hence, there is an associated uncertainty leading to reduction in
growth. There is thus a need to increase the coverage of irrigation. Farmers in
drought-hit areas suffer the most in the absence of rain.
With
the new government, we seek a boost to the ailing sector and look beyond
short-term measures such as loan waivers and cash transfers for the farmers. We
should move away from consumer to producer-centric price policy. Agricultural
markets have witnessed only limited reforms. Resolving GST issues related to
Farmers Producers Organisations, incentive for agro processing units and
enhancing investments in the R &D in the agriculture sector should be focused.
The government should consider investing in technology that could make water
management more efficient. Government’s focus on improving agricultural
productivity with an emphasis on organic food forms will further strengthen the
ambitious vision of a healthy India. This will promote F&B manufacturers,
food service providers, and consumers to embrace natural and healthier products
and lifestyles.”
the new government, we seek a boost to the ailing sector and look beyond
short-term measures such as loan waivers and cash transfers for the farmers. We
should move away from consumer to producer-centric price policy. Agricultural
markets have witnessed only limited reforms. Resolving GST issues related to
Farmers Producers Organisations, incentive for agro processing units and
enhancing investments in the R &D in the agriculture sector should be focused.
The government should consider investing in technology that could make water
management more efficient. Government’s focus on improving agricultural
productivity with an emphasis on organic food forms will further strengthen the
ambitious vision of a healthy India. This will promote F&B manufacturers,
food service providers, and consumers to embrace natural and healthier products
and lifestyles.”
Email: startupterminal@gmail.com
