5 Hours ago
BENGALURU: Start-ups from different sectors expect that this year's budget will help them in terms of funds, considering the funding winter and other macroeconomic challenges that they have been facing for the past few months.
Vikram Ahuja, MD, ANSR and Co-founder & CEO, Talent500, said in the present budget, it is imperative that the government holistically assess the needs of the start-up community and prioritise the development of an ecosystem that fosters growth for the community.
"As the funding winter for the start-ups is said to continue for another 12 to 18 months, we need a more favourable capital gain tax system that encourages easy access to capital. The government should also consider tax exemptions in FDI and maintain a sharp focus on start-up infrastructure development," he added.
India is home to over 1,500 Global Capability Centers (GCCs), and One of the key reasons why MNCs set up their GCCs in India is the robust start-up ecosystem the country offers.
"As innovation has emerged as the primary focus area in GCC strategy, start-up collaboration gives GCCs access to newer technologies that can help further the innovation agenda of the enterprise. With GCC revenue expected to scale up to $60-$85 billion by 2026, it is important for the government to take prudent steps to help start-ups, thus creating more fertile soil for GCCs," Ahuja said.
Also, this year's budget will be more significant as the country assumes the G-20 leadership. The industry is also expecting tax reforms.
Women-led businesses require more support and encouragement in order to help India raise the bar in the world of business. Most important is to make tax and regulatory compliance hassle-free and transparent. Have clear income tax benefits for women-led start-ups, said Yeshasvini Ramaswamy, Serial Entrepreneur & CEO, Great Place to Work Institute India.
Suresh Narasimha, Managing Partner CoCreate Ventures, anticipates that the budget will fuel the start-up landscape, providing crucial encouragement through tax reforms, funding access expansion, and other initiatives.
"We hope this budget brings tax respite by eliminating the Tax Deducted at Source (TDS) for start-ups and enabling Goods & Services Tax credits (GST). GST should be eliminated for procuring services from priority start-ups. The government should introduce impact-based and Intellectual Property (IP)-based incentives and resolve long-standing problems with ESOP taxation," he said.
"By categorising start-ups on priorities like innovation, global opportunity, and national importance, such as path-breaking technology and defence, we can increase GDP expectations by 4X in 10 years by setting up a separate ministry with a tax regime for startups, encouraging ethical reporting & corporate governance," he added.
Edtech start-ups have been struggling for a few quarters now, and they say that the high interest rates on education are the biggest growth deterrent.
Mayank Kumar, Chair at IEC (India EdTech Consortium) said, “Legitimate tax benefits will be instrumental in granting applicants with higher rebates and deductions in tax calculations while also making online education a household phenomenon."
He added, "We expect the upcoming budget to accelerate wider collaboration with Edtechs to serve a two-pronged purpose: (a) to co-create a curriculum across K12, test-prep, and higher education that stands at par with our global counterparts, and (b) to further scale quality education across levels thereby, also accelerating India's GER ratio. "
Start-ups in the fintech space are also eagerly awaiting as they expect the budget will have some regulatory framework for digital wallet companies. (AIR NEWS)