‘Startup India,’ the flagship project of Prime Minister Narendra Modi is all set for a boost in the upcoming Union Budget, to be announced on the 1st, February 2017 by finance minister, Arun Jaitely. The startup community is hoping for some reforms that will positively impact the startup ecosystem.
Factors like demonetization, cashless economy, GST reforms are expected to be of prime importance in the Union Budget for the year 2017-18. Favorable changes are expected in the tax slabs and rates, IT infrastructure development, easy short-term loans and working capital for the vibrantly emerging IT sector.
Post demonetization expectations from budget 2017 have increased drastically.
Entrepreneurs are eagerly waiting for some good news from the finance minister in this Union Budget. Most startups work on a stringent shoe string budget. To work around an idea, a startup needs tools, team, tech and infrastructure. The year 2016 has been very tough on Startups, as many as 212 startups closed down, hyperlocal startups like Peppertap and Grofers closed their operations in some cities. To help startups during this initial setup phase. The Union Budget should roll out schemes with cheaper loan access, startup friendly debts, lucidity of startup policy and exemption from the minimum alternate tax could be instrumental in aiding entrepreneurs to scale up and keep innovating.
Infrastructure plays a vital role in the growth and development of IT backed startups. Like most major cities are now digitally well connected. Measures to assist digital upgrades and digital literacy across the country must be announced so that startups can connect with more numbers of towns and villages.
Startups are expecting lower taxes, strict measures for tax avoidance, easy filing of income tax, and some much needed clarity on the long standing GST issue. Incentives for cashless transactions and digital payments could bring about the much needed transparency and also prove to be the much needed stimulus for the boom of e-commerce industry as a whole.
The previous budgets have systematically set the stage for startups to turn their vision into reality. Digital India is an inevitable part of the Startup India Movement. Demonetization has been instrumental in shifting our cash driven economy towards cashless transactions through mobile wallets and banking. Now the budget needs to focus towards making digital transactions an inevitable way of life for everyone. We expect the Union Budget 2017 to have significant growth-centric announcements that help put India’s economic performance back on track.
The Union Budget 2017 is an apt opportunity for the government to act proactively and take some concrete actions to propel the growth in the startup ecosystem. Most budgets in the past have been populist, but we stand at a junction where it’s time to seize the opportunity and make a tangible impact on the economy through the dynamically booming Indian startup ecosystem.
