Mr. Anup Patil, CEO of Intangles Lab Pvt. Ltd, a Digital twin startup
The 2022 budget is very critical for start-ups, considering that many have struggled to survive during the pandemic. Startups are looking forward to support from the government this year. The startup ecosystem’s expectations are for some tax relaxations and startup-friendly measures for making it easier to incorporate a company, streamlining compliance mechanisms, and avenues for easier capital access for budding startups. Also, we are keen on hearing some initiatives to promote startups in tier 2 and tier 3 towns, making the whole ecosystem more inclusive.
Mr. Victor Senapaty, CO-Founder at Propelld
‘2022 union budget has been expected to bring policies for startups to promote leadership and entrepreneurship in India. Newbie startups would expect new incentives and simplified compliances since the economy has been majorly impacted worldwide due to the pandemic. Fintech startups are looking for the finance ministry to bring innovative reforms, policies, and regulations to offer relief and tax sops to the overall startup ecosystem.’
Mr. Amit Nigam, COO & Executive Director at BANKIT.
“Nowadays, people are looking for more convenient banking services. As intriguing as it is, Start-ups and FinTech industry are quite handy to the public. Those who have comprehended the accelerated needs of not only unbanked population but also of underbanked population hold the brightest of future in the FinTech industry. The expected outcome of the efforts of FinTech industries is to make people rely on uncomplicated, safe, and one-stop-solution services. FinTech industry is based on technology and innovation. With a huge investment on IT infrastructure and manpower, we are expecting tax relaxations on these investments.”
Mr. Rajesh Murthy, Vice President at Intellicus
Govt. should further encourage digitization of companies and 100% made-in-India software products. At present, the GST with the full input tax credit is 18% for all software products produced and sold in India. We expect this rate must be tapered down to support indigenous creators of software IP in India.
Mr. Kapil Makhija, CEO Unicommerce
“Amidst the pandemic, e-commerce has become an integral part of India’s retail industry. India has the world’s fastest-growing e-commerce and SaaS markets. Both sectors have garnered attention from investors and companies across the globe. We are an e-commerce focused SaaS solution company and we expect that the upcoming budget should focus on increasing digitization in Tier-II+ cities of India. The young aspirational Indian’s from these regions have started adopting e-commerce extensively and if the government continues to focus on the infrastructure there is immense growth potential. Also, we expect that the government will further provide clarity on the tax obligations of e-commerce companies and brands as it will help them further streamline their operations. We also believe that logistics infrastructure will play a pivotal role and any reform in improving India’s supply chain infrastructure will help in further driving the growth of India’s e-commerce industry.”
Mr. Saahil Goel (CEO & Co-founder of Shiprocket)
“We have a lot of expectations of support to the start-up ecosystems which can really boost the economy. There should be a single window for all the relevant registrations like company incorporation, shop establishment, GST registration, MSME certificate etc. which will help save time, efforts, and money considerably. For start-ups, ESOP’s are key to attract & incentivize talent, these should not be taxed on vesting as recipients do not have ready cash in the hands at that point, the taxation should be on the final Sale of shares. Further, there is a deduction of TDS by the e-commerce operators on sale of goods, which leads to blockage of capital – that should be done away with.
India’s Logistics cost are high. Steps towards Subsuming petroleum products under the GST regime have been under discussion for long; these will reduce fuel cost and progress needs to be made in that direction”
Mr. Kinner N Sachdeva, the co-founder and CEO, Knorish
When Benjamin Franklin was thinking of a bright future for America, he decided to focus mostly on building the Public Library System. The gurukul system of ancient India was also based on the premise that the ‘Guru’ is the best source of knowledge and learning. As India stands on the verge of becoming a global powerhouse in all spheres, we are not just competing with ourselves but the world altogether. Today, the thirst for good learning content amongst students, lifelong learners and corporates is witnessing unprecedented growth. So if we are to compete with the best in this global economy, access to learning that teaches new-age skills needed to survive and thrive in the 21st century must be made available to all. As such, I believe that GST on all online learning programs and enablers should be exempted from GST to make it more affordable for all.
Mr. Shiv Sharma, VP International, Stocktwits.
Based on our social media surveys, most retail investors “avoid trading” during the Budget, likely because many own blue-chip, secular winners for the long-term. Meanwhile, active retail traders usually ride momentum on sectors expected to hear bullish commentary in the Budget session. This year our data shows retail investors expect renewable energy to see increased focus. Retail investors are also hoping for relaxing of Long Term Capital Gains Tax and clarity on crypto tax policy.
Mr. Kartik Shah, CEO, Coldrush logistics
“The logistics industry is dealing with non-predictable fuel prices, and its non-inclusion in the GST regime is already making it hard for companies in this space. This sector also has a higher CAPEX cost, making the liquidity cycle more stringent for businesses. Currently, the processed food segment is growing rapidly and needs reefer transport. But the GST on fully built reefer vehicles is 18%; thus, reducing it would significantly encourage businesses to invest in it and thrive in their journeys. Similarly, extending the subsidy scheme on these vehicles would also be a step in the right direction and help players operate more seamlessly without any financial burden.
Moreover, the central and state governments currently have huge unused land parcels at prime locations. These can be leveraged to create warehouses and cold storage. The government has also pushed for the use of solar in this sector. However, it is not viable for medium-level players like us. As a result, the government can incentivize this and explore other possibilities to make solar power duty-free for cold storage providers. This move will serve a bigger goal of reducing carbon footprints and building a sustainable ecosystem for businesses.”
Mr. Anil Nagar, (Founder and CEO atAdda247)
The companies in the startup ecosystem will play a significant role in transforming the country’s image. The EdTech industry has flourished at an accelerated rate as it broke new territory and entered tier 3 and 4 cities of the country. It will play a major role in educating our workforce for a better tomorrow. This is possible only if we make online education affordable to all. The Government should support this through a lower GST, while focusing on creating a strong digital infrastructure to improve the quality & experience of online education for students in cities as well as remote areas. The government should also forge alliances with Edtech companies to accelerate the learning outcomes with the help of cutting-edge technologies in the education ecosystem.