As Finance Minister Nirmala Sitharaman prepares to unveil the Union Budget 2024, the startup community is united in its anticipation of transformative reforms. But what do industry leaders hope to see?
The focus is on advancing technology and digital integration. Startups are urging the government to continue and enhance support for artificial intelligence (AI), machine learning (ML), and digital tools, particularly those that reach the grassroots level. Emphasis is placed on integrating cutting-edge technologies to improve agricultural solutions and streamline financial access for farmers.
Easier Access To Credit
Access to credit and data-driven decision-making in rural sectors is another major request. Entrepreneurs are calling for reforms that would simplify and expand credit access through public and private financial institutions. Strengthening the agricultural ecosystem with a robust digital infrastructure and incentives for technology adoption is seen as crucial for empowering farmers and revitalizing rural economies.
Sustainable Growth For EV
In the electric vehicle (EV) sector, there is a strong demand for a stable and long-term subsidy scheme. The startup community argues that consistency in subsidies, including for four-wheelers, is vital for sustaining growth and accelerating EV adoption. The need for subsidies to cover both fixed and swappable batteries is also highlighted to level the playing field and support broader EV adoption.
Focus On Deeptech, Spacetech Sectors
For the space sector, increased budget allocations and government support are key. There is a call for the government to act as a major customer for private space ventures, mirroring successful international practices. Boosting funding and creating more opportunities for domestic space technology are seen as essential for fostering innovation and strengthening the sector.
In anticipation of the Union Budget 2024, there is a strong call for enhanced support for the digital economy, which is seen as central to Prime Minister Modi’s vision of a "Viksit Bharat" by 2047. Experts stress the need for bolstered digital infrastructure, innovation incentives, and a favorable regulatory environment.
"We hope to see more encouragement and impetus around the digital economy, which will play a prominent role in PM Modi's vision of 'Viksit Bharat' or a developed nation by 2047," says Sandeep Aggarwal, Founder and CEO, Droom. He stresses the need for strengthening digital infrastructure and creating a conducive regulatory environment, which are crucial for driving economic growth and enhancing global competitiveness.
Regulatory Simplification
Moreover, Aggarwal highlights the importance of regulatory simplification. “For the ecommerce sector, we expect the government to streamline regulations to facilitate smoother operations,” he notes. This includes easing complex state-specific rules and improving the ease of doing business. He suggests simplifying the patriation and repatriation of foreign capital, facilitating direct listings of Indian companies on foreign stock exchanges, and accelerating company incorporation and liquidation processes.
On startups, Aggarwal urges the Finance Minister to introduce measures that will significantly increase domestic capital, such as making capital gains tax-free for investments in startups and easing terms around Angel Tax. "We hope this budget will introduce policies that encourage greater investment in start-ups, thereby fostering innovation, entrepreneurship, and economic growth," he concludes.
These demands reflect a unified call from the startup ecosystem for supportive measures that drive technological advancement, infrastructure development, and inclusive economic growth. As the Budget is presented, these sectors will be closely watching to see how their critical needs are addressed.
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