New Delhi, July 5 (KNN) This year the Union Budget 2019-20 was all the more important as it was the first budget post General Elections and was also a Budget presented by first full-time woman Finance Minister Nirmala Sitharaman. This year the budget has given special impetus to Start-ups and their ecosystem.
KNN India has reactions from Start-ups from across different sectors on various announcements made:
On starting a new TV channel for startups under the Doordarshan umbrella
Vivek Goyal, Co-Founder of PlayShifu, an augmented reality technology startup: A dedicated TV channel managed by startups themselves is a tremendous way of spreading awareness about the innovation startups bring to Indian, and even global, economy. While startups can garner visibility through this channel, people can stay up-to-date with the latest developments in the Indian startup circle.
It also proves that we are not just mimicking established ecosystems and the government is going out of their way to fuel the Indian startup circle.
Sonica Aron, Founder & Managing Partner, Marching Sheep: This seems to be an Indian version of Shark Tank (USA) or Gragon’s Den (UK), and both these formats have been successful in setting up and promoting startups. This is indeed a good idea and we can learn much from existing formats and replicate for faster execution.
Umesh Khatri, Co-founder, COO & CTO, Rgyan – A Socio Spiritual Tech Startup: Giving a dedicated TV channel to the startups will help in creating more awareness among the mass regarding new innovations, upcoming future technologies, products and more.
On focus on new-age skills including artificial intelligence, 3D Printing
Vivek Goyal, Co-Founder of PlayShifu, an augmented reality technology startup: I think it is a step towards a positive change that can change India’s international stance in terms of innovation. It’s time to change India’s face from a SaaS provider to a tech-savvy product creator! Technology like AI, AR, VR, 3D printing and more are already playing an instrumental role in connecting with the next generation by making products that they understand and were born and brought up with.
Sonica Aron, Founder & Managing Partner, Marching Sheep: New skills, upskilling is always welcome. I would request the government to also provide for education and skilling for employment of marginalised people like transgenders, differently abled, children who do not have access to basic education.
On Proposal to ease angel tax norms. Funds raised by startups will not require any scrutiny by the income tax department.
Vivek Goyal, Co-Founder of PlayShifu, an augmented reality technology startup: Angel is the most effective way of taking ideas from 0 to 1. As we have seen there is lot of growth capital available in India but innovative ideas from tier-II cities often don’t see the light of the day because of lack onf angels. Angel network needs to grow out of metros to tier-II cities to make India really a startup economy and such tax reforms will go a long way in doing that.
On announcements for Women Entrepreneurs
Sonica Aron, Founder & Managing Partner, Marching Sheep: Women self-help group interest subvention programme will be rolled out in all districts of India. One woman in every SHG will be made eligible for a loan of Rs 1 lakh. This is a very welcome move. Not only will this go pan India, it will also enable women to start their own initiatives. This will lead to independence and empowerment. Good thought, will need tight on ground execution.
On proposal to streamline multiple labour laws into a set of four labour codes
Sonica Aron, Founder & Managing Partner, Marching Sheep: This will indeed simplify things from the regulatory and compliance perspective. However, might prove to be challenging as our entire labour machinery will need to unlearn and relearn. Learning from the recent changes in company’s act and GST implementation, giving clarity of the change, how to execute, milestones and timelines would be critical so that industries find the change smooth.
By Umesh Khatri(Cofounder, COO &CTO), Rgyan – A Socio Spiritual Tech Startup: In the budget presented by our finance minister, it is good to see that they are focusing on the innovative skills of artificial intelligence, 3D printing and others. This will really encourage in the growth of the startups in these sectors and people will get benefits of such technologies. Also giving a dedicated TV channel to the startups will help in creating more awareness among the mass regarding new innovations, upcoming future technologies, products and more.These factors will really help the startup sector to continue with the growth.
Nishchal Chaudhary, Founder & CEO- BattRE electric mobility Pvt Ltd: I think the budget has clearly indicated the positive intent of the government in pushing the emobility revolution in India. The question of when is not that important as the how . The ‘how’ is now getting addressed. Consumer adoption of this technology not only requires education and mindshift but also an attractive and feasible overall proposition. I think with the govt proposing lowering of gst and providing deduction of tax on interest on loans, outlay for infrastructure for battery charging stations, push towards make in India intitaive is just the kick start measures required.
On Overall Budget
Deena Jacob, Co-founder, CFO & Head (Revenue and Growth), Open: The overall intent of the government to provide impetus to startups in the budget is heartening. Finally, a strong message on the scrutiny on Angel Tax is a welcome move which will open up capital source for early-stage ventures. However, the implementation part including the details of the verification mechanism will be the key to its effectiveness.
Mustafa Nadeem, CEO, Epic Research: The budget in the overall scenario seems very balanced at this point in time. If we try it to compare with the interim budget there are only a few takeaways like firstly the increase in holding of up to 35% in listing companies. This is going to improve depth as well as make various listed companies available to retail participants. It will also attract foreign investment. Secondly, the additional 1.5 lakh exemption for homeowners on interest paid is a welcome move. This may have long term benefits for space as well as buyers and owners. We believe another good move that is seen in the budget is to focus on spending in infra and construction space. Opening up various routes for foreign investment and further easing the routes will bring in more long term investment in this space. The massive investment of 100 lakh crore for the next five years will boost the space and bring in more demand which has seen a slump in the last few months.
With that, the rural boost of 1.95 cr houses is certainly going to improve demand for space like steel and aluminum, cement and its allied space. The reduction in tax for companies up to 400 cr is a welcome move but it could have been increased. We believe the only problem is with a 3.3% fiscal deficit number. In the current scenario with GDP projection at 7% it may see some variation. The PSU space is certainly a gainer with an increase in the limit to sectoral limit and a further 70k boost for PSU bank space will make select PSU banks a lucrative play.
Nishchal Chaudhary, Founder & CEO- BattRE electric mobility Pvt Ltd: I think the budget has clearly indicated the positive intent of the government in pushing the emobility revolution in India. The question of when is not that important as the how . The ‘how’ is now getting addressed. Consumer adoption of this technology not only requires education and mindshift but also an attractive and feasible overall proposition. I think with the govt proposing lowering of gst and providing deduction of tax on interest on loans, outlay for infrastructure for battery charging stations, push towards make in India intitaive is just the kick start measures required.