The budget proposals aimed at fostering further development of FinTech services in India are indeed commendable. The nation’s digital public infrastructure, including Aadhaar, PM Jan Dhan Yojana, Video KYC, India Stack and UPI, has provided the foundation for FinTech services to thrive. By expanding the scope of documents available in DigiLocker for individuals, the government has taken a good step further towards enabling even more innovative solutions in the FinTech sector.

This move towards digitalization will streamline the process of acquiring necessary documentation for FinTech startups, reducing the time and effort spent on manual processes. This will also enable the FinTech sector to develop new technologies for better data analytics, besides enabling quicker turnaround times in processing data will go a long way in increasing the efficiency of the banking sector.

The Budget 2023-24’s proposals to extend the date of incorporation for income tax benefits and provide the benefit of carrying forward the losses for start-ups are important steps towards supporting entrepreneurship and promoting economic development in India. The extension of the period from 7 to 10 years will provide a huge room for start-ups to make larger investments and also provide time to recoup these investments and get back on a growth trajectory, which will be beneficial for the long-term success of start-ups.