Honorable Finance Minister, Nirmala Sitharaman presented Union Budget on 1st February 2020 in the Parliament. The Union Budget 2020-21 unveiled a series of far-reaching reforms, aimed at energizing the Indian economy through a combination of short-term, medium-term, and long term measures.
The Union Budget 2020 has been structured on theme of “Ease of Living”.
Farmer-friendly initiatives have been proposed such as:
- Agriculture credit target of Rs 15 lakh crore for 2020-21
- schemes of “Kisan Rail” and “Krishi Udaan” for a seamless national cold supply chain for perishables
- expansion of PM-KUSUM to provide 20 lakh farmers for setting up stand-alone solar pumps
For Health Sector:
- Union Budget 2020 proposes more than 20,000 empanelled hospitals under PM Jan Arogya Yojana for poor people
- expansion of Jan Aushadhi Kendra Scheme to all districts offering 2000 medicines and 300 surgicals by 2024.
- 100 more airports by 2024 to support Udaan scheme
- operation of 150 passenger trains to be done through PPP mode.
Let's hear from some startup leader regarding what they feel about this Union Budget.
Mr. Udit Sheth
Vice Chairman, Setco Automotive
The budget is a very progressive one - the focus on infrastructure & spending will boost the job market and build confidence of the industry hand in hand. It’s a step towards a robust economic reform agenda.
Country Manager, Garage Society India
Economies across the globe are moving towards a shared-wealth model as the ever growing population consumes the available resources. Both co-working and co-living are great examples of how shared wealth can benefit people, businesses, and boost the GDP of the nation. The government can play a crucial role by cutting down the GST slabs such business and providing certain tax benefits to increase the adoption rate, much needed for an emerging nation like India.
Mr. Vishal Saurav,
Founder and CEO of Xboom Utilities Pvt. Ltd.
"This budget gives the entrepreneurs a big relief as the complications and workarounds of finding investment schemes should get eased out with the formation of Investment Clearance Cell, which will provide pre-investment advise, information on land banks and state level clearances. Also, since the audit is now required only if the earning is more than 5 crore annually for Micro, Small and Medium enterprises which was 1 crore previous year, people can concentrate on their business instead of worrying about compliance burdens. Although, the condition that 95% transaction has to be cashless to avail the benefit might prove troublesome to some businesses."
"There seems to be a genuine attempt from the government towards promoting the 'Make in India' campaign by allowing tax exemption in Foriegn Direct Investment. However, the introduction of export tax may create financial burden for small businesses. Also, as the government allocates ample funds for SC & OBC, it would have been great if FM had given a thought for women's safety related issues." further added Mr. Vishal Saurav.
Mr. Dheeraj Khattar
We are happy that Govt is continuously focusing on Skill development and In the current budget has planned 3000 crores for the same. But the challenge still remains the end outcome making these skilled workforce employed, self employed or given some entrepreneurship opportunities. Govt has to be experimental in spending money for skill development. The intent of skill development is to develop ability in people do the associated job. Govt should find out some avenues where job or opportunity givers ( MSME or Enterprise ) have higher stake in driving the training programs across the country and enables people to earn money.
Mr Manit Parikh
Country Head India, ELSA Corp
For India to have a $5 trillion economy, the youth have a key role to play in enabling this goal. The advantage of the 'youth dividend' needs to be channelised and enabled to put the country on the global map.
There is a huge demand for individuals in various industries ccountries internationally as well. However, the skills do not match in accordance to demand by employers. So, by the government proposal of Rs 3,000 crore it allows the country to create quality skill development which will be available at affordable cost, focusing on 5 key components that are Visual, Reading, Listening, Speaking and Thinking among others are very important, especially via the use of emerging technologies such as Artificial Intelligence (AI), Augmented Reality (AR) / Virtual Reality (VR) and more.
There have been many Ed Tech companies in India like BYJUs, ELSA Speak and more who are at the forefront of this by engaging with both youth and adults in Tier 1 cities and beyond to empower and uplift them to have jobs and move away from ones which may soon become obsolete.
Vice President Kapture CRM
It's good to see this budget emphasizing on the Indian spirit of entrepreneurship and aiming towards a digital revolution. We also welcome the pragmatic approach of allowing the private sector to build data center parks in the country and its new policy for integrated information portal.
Also Read: Software as a Service Revenue Model
Mr. Chet Jainn
Founder & CEO, Crowdera
I think it's a very good move deferring the ESOPs or deferring it for 5 years, till they sell it or leave the company. I think it's a very interesting move and startups will be able to exercise such facilities to hire more talents.
Though it's financing for MSME is also a very interesting topic where a lot of MSMEs will be able to leverage this opportunity to scale, finance their invoices and keep increasing their production with the additional financing options that they would have.
And almost Rs 100,000 crore education sector package is subtly going to boost the economy to the education sector. Ed-tech companies and certain other educational programs are going to benefit. I am very sure interesting permutations and combinations are possible when the innovative startups come into the education space with this. We will have to see the details of Rs 99,300 crore package that the government has announced.
Mr. Jaikishan Parmar
Sr. Equity Research Analyst Angel Broking Ltd.
This budget as such there is no big bang Positive announcement for the banking sector; however, Insurance cover for FD has increased from 1lk to 5lk was positive. For NBFC budget extended Credit guarantee scheme. Need to see how much new tax regime could impact banks other income as banks earn healthy fess income by selling third party products (Insurance, ELSS, etc).
To support MSME has asked RBI to extend existing debt restructuring scheme from current 31st March 2020 to 31st March 2021.The limit for NBFCs to be eligible for debt recovery under the Securitization and Reconstruction of Financial Assets and Enforcement of Security Interest (SARFAESI) Act 2002 is proposed to be reduced from Rs.500 crores to asset size of Rs. 100 crores or loan size from existing Rs.1 crore to Rs. 50 lakh. This would help NBFC in recovery process for an even smaller loan.
Mr. Jaikishan Parmar
Sr. Equity Research Analyst, Angel Broking Ltd.
Finance minister Nirmala Sitharaman introduced new reduced tax slab for those who do not avail of any exemptions. This announcement has led to a plunge in insurance and AMC companies. This has created uncertainty of business growth of these companies, as many taxpayers generally use life insurance policies and ULIPS and ELSS to fill their quota of deductions.
It is a progressive budget with a clear push towards the socio-economic growth of the country with a focus on consumption push, MSMEs and enhanced digital connectivity. The budget touched upon almost every stratum of society with the aim of bringing greater ease of living for the citizens.
There is a visible thrust for a digital solution and emerging technologies such as AI, machine learning and data analytics, with the budget highlighting that India’s new economy is based on innovation.
Further, we welcome the government’s proposal to provide digital connectivity to 1 lakh gram panchayats. We hope that the convenience, ease, and speed of digital transactions is extended to the remotest village. Such measures shall create germane ground for decentralization of innovation and democratization of data led services.
This year's budget lays down several progressive measures. As the Finance Minister proposes to ease the tax burden of ESOP on employees by deferring the tax payment by 5 years, I am positive about this move and welcome the introduction of ESOP at a larger level. I hope this would result in attracting world-class talent while keeping employee costs in check. As sovereign funds have been an important funding source for startups in India, I am happy that there has been an exemption of 100% for these funds on interest payments. I believe this move will further attract more foreign funding into the startup ecosystem.
The personal income tax rates that have been slashed are interesting, as these new slab introductions and an increase in the income limit for the existing slab will immensely help address the low consumer spending and boost savings and investments for an individual.
Additionally, it’s a proud moment for entrepreneurs like us as the Finance Minister quotes us as the ‘strength of India’. Overall, we believe that this is going to give a boost to the entire startup ecosystem as the Union Budget 2020 proposes slew measures to ensure ease of doing business for Indian startups, including seed fund to support early-stage startups and investment clearance and advisory cell for entrepreneurs, among other measures.
Founder & CEO Incred
Much needed focus on agriculture and allied sectors which should give a boost to the rural economy and hopefully lead to higher spending as farmers’ incomes rise. The emphasis given to infrastructure is another positive that will improve our economic foundations and drive productivity. The tax breaks given to SWFs to invest in Indian infrastructure will give a fillip to inbound investment flows in this area.
The government has also reiterated its commitment to the disinvestment programme with the announcement of IDBI divestment and LIC IPO. Having made all of these positive points, I must highlight that ultimately a recovery in bank lending, which has not yet been forthcoming, is a must in order to get the economy moving at top speed again.
CMO and Consumer Business Head Acer India
This is positive budget overall from the technology focus point of view. We are pleased that the Government is allocating Rs. 8,000 crore for the National Mission on Quantum Computing and Technology.
The government’s move on encouraging manufacturing of electronic equipment in India is also a big step as this would provide much needed impetus to technology and manufacturing sector, which has been developing capacities and generating employment opportunities. Also, more focus on technology such as Machine Learning, Robotics, AI will support the industry to grow and establish India as a robust ecosystem for technology and innovation.
Mr. Vivek Jain
Chief Business Officer - Shiksha.com, Naukri FastForward
The budget gives a good push to our education sector which in turn will help generate employment and boost our economy. The proposed investment in Study in India program will bring more youth from foreign countries and it will be a big step towards the aim of making India the education hub of the world. IND-SAT targets Asian and African countries only but we hope it will open to the whole world soon. Reskilling students and teachers will help us compete internationally.
Also the MBBS colleges in each district is a great initiative as we feel there is a big void in that area which needs to be filled. Now people will get full fledged online degree programs which will be offered by top 100 institutions which will be helpful for students who otherwise had to travel for quality education. We will be eagerly waiting for the new education policy and hope to see similar positivity like this budget.
Mr. Tirtha Pratim Banerjee
CEO & Founder - BRANCON Communication
The process of finding financial schemes will be easy with investment clearance cell which can provide state level clearances. The introduction of export tax will put burden on businesses who are trading in international markets. This indirectly promotes make in India campaign.
As the audit is now required if the earning is more than 5 crore for Small and Medium enterprise can concentrate on business rather than compliances. 100% deduction of profits for 3 years gives the initial kickstart for a startup. As quoted by the FM, "Entrepreneurship is the strength of India ", it gives immense hope to the startup industry for a bright future.
Ms. Anika Parashar
CEO - River Rock Ventures and Chairperson/ Founder- Organ India
Union Budget 2020 has focused on India’s entrepreneurship strength, which is a positive move for the country’s economy. In a major boost to startups, FM Nirmala Sitharaman has proposed to increase the upper limit of revenue to Rs 100 crore from the existing Rs 25 crore.
I welcome this move on creation of an investment clearance cell, which will provide end-to-end facilitation to assist startup owners/entrepreneurs in funding. It will help in faster clearances between the state and the Centre. The turnover limit of startups has grown which will prove beneficial for the budding forums to expand.
Mr Achin Bhattacharyya
Founder and CEO Notebook
The honorable FM in her budget speech devoted considerable time to the MSME’s.
Generic tax rate rationalization in the hands of the individual taxpayers (which should see more consumer spending because of higher disposable income), and some other policy announcements are expected to create a relatively positive business environment for the MSMEs.
The FM also mentioned how MSMEs have been benefitted through enhanced threshold and composition limits, and made some specific announcements with regard to MSMEs in this year’s budget
Amendments has been proposed in the Factor Regulation Act 2011 which will enable NBFCs to extend invoice financing to the MSMEs through TReDS, thereby enhancing their economic and financial sustainability.
Provide subordinate debt
We are all aware that working capital credit remains a major issue for the MSMEs.It has been proposed to introduce a scheme to provide subordinate debt for entrepreneurs of MSMEs. This subordinate debt to be provided by banks would count as quasi-equity and would be fully guaranteed through the Credit Guarantee Trust for Medium and Small Entrepreneurs (CGTMSE). The corpus of the CGTMSE would accordingly be augmented by the government.
Extension of Restructuring window
The debt restructuring window for MSMEs (More than five lakh MSMEs have already benefitted from restructuring of debt permitted by RBI in the last year) was to end on March 31, 2020.Government has asked RBI to consider extending this window till March 31, 2021.
App-based invoice financing loans product
To solve the problem of delayed payments and consequential cash flows mismatches for the MSMEs, an app-based invoice financing loans product will be launched.
Focus on exportsFor selected sectors such as pharmaceuticals, auto components and others, the honorable FM has proposed to extend handholding support – for technology upgradations, R&D, business strategy etc. A scheme of 1000 crore has been announced and financing details shared.
I see some positive initiatives being taken by the honourable Finance minister with regard to the education sector in this years budget, some of them which I would like to highlight are
New Education policy
Good to know that the new policy will be unveiled soon, and I am really excited to know that more than 2 lac suggestions have gone in.
On line degree courses by top 100 institutions
In a country as big and diverse as ours, the only way to leapfrog and ensure delivery of quality education to students in every remote corner of the country has to be centralized building of quality content and online delivery using best in class cloud based storage and technically robust delivery requiring minimal resources at the users end. Thus this should be a very welcome step, subject to proper on the ground implementation.
Developing India as a education hub
The announcement with regard to introduction of “ Ind – SAT” exam is definitely a step in the right direction, however this is only a first step and there are lot of other steps including creating of world class infrastructure with adequate bandidth ( which can accommodate overseas students after doing justice to domestic aspirations) which will need to be seriously taken.
However if implemented properly, this will promote cross cultural exchanges and create a fan base for our beloved nation amongst tomorrows leaders in the developing world.
Apprenticeship and internship opportunities
Opportunities for fresh engineers to work in urban local bodies and apprenticeship opportunities in 150 higher education bodies reflect practical thinking, but these are baby steps in the right direction given the enormity of expectations that a force of billion dreams brings in.
ECB, FDI & PPP funded projects
This is really important, as the announcement by the honourable FM clearly gives emphasis on increasing bandwidth ( Attaching medical colleges to district hospitals) and also on delivering quality education).
Skill development to increase employability
Announcement of special bridge course to develop language as well as domain skills to cater to job opportunities in overseas markets for teachers,Nurses,Care Givers and para medical staff is a very good step and should positively impact the lives of not only our young job seekers but also there families and communities that they are part of.
Given the ageing population in the developed countries and the huge demographic advantage that we currently enjoy, this is a logical and inevitable step.
Mr. Rajan Sharma
Founder & CEO - excess2sell.com
This is a very strong Budget in terms of focus on fundamentals. It has focused on agriculture, simplifying tax structures, infrastructure, and on self-reliance for the long term. The Hon’ FM has tried to create a level playing field by going to markets for fundraising rather than through the tax route. The continued emphasis on technology will help in the coming years to ensure ease of business, transparency and better compliances by all stakeholders. With tax rates reduced on the existing tax slabs, consumers will have more to spend. We are happy that e-commerce was today defined for the first time in the Budget and we look forward to policy initiatives on new-age business formats. With tax-deferred on ESOP and early-stage fund for start-ups, we feel this Government has good intentions to ensure that technology and knowledge-based entrepreneurship is encouraged in our country.
Co-founder CEO, Sequretek
The Budget every year rides on massive expectations from the salaried class, corporates, MSME and startups. For the last few years, startups, tech, VC investments, govt aided funding started finding regular mentions but fund allocation to these areas were never eye-popping. But FM gave us a pleasant surprise by announcing Rs 8,000 crore on National Mission on Quantum Technologies and Applications. For companies like ours in cybersecurity space, it is a good move if it becomes a model for creating a replicable cyber forensics setup. Today each state has its own setup and there are some universities that have build out capabilities, but there is no standardization. With increased cyberattacks, the need for a national capability to identify the perpetrators and supporting law enforcement would be welcome. Devil lies in detail, though, so we will need to understand these initiatives once the fine print is available. Having said that, Startups are finding quite a bit of mention in the budget, making them a key part of the growth strategy. We are happy to see that the representations done by the startup ecosystem seem to have found resonance in the budget.
Mr. Sachin Mittal
CEO & Founder - Loanwalle.com
In the recently proposed Union Budget 2020, the Government’s focus on entrepreneurship for startup businesses is commendable, as that will generate more job opportunities in our country. Speaking on the financial side, the Government emphasised on more liquidity flow within NBFCs which will help boost the current slopping NBFC and private lending sector. Further, it will allow increased lending opportunities with greater ease. We applaud the new announcement by the FM where NBFCs having turnover of INR 100 crore will now be eligible for SARFAESI (The Securitisation and Reconstruction of Financial Assets and Enforcement of Securities Interest Act). While earlier, only companies with a turnover of INR 500 crore were eligible to recover their debts by selling properties of the defaulters, going forward, the new Budget announcement will allow smaller companies as well to recover their debts. This will further offer more capital flow in the market.
Mr. Ayyushman Mehta
Managing Director, Mavox Helmets - Sandhar Amkin Industries
The second budget by Finance Minister, Nirmala Sitharaman catered mostly to the demand side of the economy. By putting in more money in the hands of the individuals, Hon’ble Finance Minister’s take on abolishing the Dividend Distribution Tax (DDT) is surely a tax relief for the middle class and lower-middle-class segments, while on the corporate side it is highly positive for all consumption-linked Auto sector companies, and the overall market. The simplification of the tax regime is sure to improve public sentiment and boost the economy. This budget is likely to revive our country’s economic growth and create new job opportunities.
Mr. Satish Gupta
Executive Director, JK Technosoft Ltd
In the era of globalization, the Union Budget 2020 focused deeply on ‘Aspirational India’ and ‘Digital Revolution’ with emphasis on evolving the economy digitally by skilling India and increasing job opportunities in the budding as well as cross-cutting fields of Data Analytics, Artificial Intelligence (AI) Robotics and Machine Learning (ML). The Government also announced building of data centre parks throughout the country along with allocation of INR 8,000 crore to set up for the National Mission on Quantum Computing and Technology. Furthermore, the use of AI in 'Ayushman Bharat' Yojana, will help in developing the healthcare industry using advanced technology such as AI and other enterprise solutions, thereby achieving seamless delivery of services. We also applaud the Government’s move to empower Rural India by helping 20 lakh farmers set up standalone solar pumps and 15 lakh solarise grid-connected pump sets.
Also read - Top real estate startups in India
Mr. Amarsh Chaturvedi
Co-Founder & Director - Transerve Technologies Pvt. Ltd
The Government’s vision of ‘Vibrant India’ bought in immense focus on ‘Digital Governance’ that is likely to bring in a paradigm shift in the overall economy. We are delighted to hear that the Government ULB’s (Urban Local Bodies) internship opportunities for civic-welfare programs will help in increasing job opportunities and in turn Skilling the Indian Youth.
Mr. Ashwani Rawat
Co-Founder & Director - Transerve Technologies Pvt. Ltd
We commend the Government’s announcement of proposed budget allocation in setting up 5 new Smart Cities under PPP model and further extend our support to this initiative. While the Government proposed to expand the horizon of ongoing ‘Swachh Bharat Mission’ in order to undertake sustainable solid waste management harnessing latest technology in every village, we further hope that this initiative highlighted by the FM would be extended to urban areas as well.
Ms. Ruchi Garg
CEO & Co-Founder - Venuelook
The full-fledged 2020 budget is commendable as it has all the right points for the Indian economy to be a game changer in the year ahead. With emphasis on ‘entrepreneurship’ and ‘startups,’ we are glad the Government has opened a path to creating more job opportunities in the country. Furthermore, more regime in technology will help startups and the private sector to reach Tier I and Tier II cities, as it will give more opportunities to young talents. Observing the proposed mission-vision on women centric developments and targets to boost the Indian economy, this budget will motivate many women to come forward and embrace women entrepreneurship in India.
Mr. Vinay Jain
Founder and CEO, Grafdoer
We appreciate the Government's focus on sanitation industry under Swachh Bharat Abhiyan campaign committing to Open Defecation Free Country by allocating INR 12,300 crore. This is an exceptional move towards the development of our nation. The Government’s emphasis on supporting the MSME sector by providing employment opportunities and providing a subordinate debt by banks is a much appreciated move. We are positive about the Government’s focus on boosting the domestic manufacturing sector, as that will further boost Made In India. Also, the reduction in the Income Tax Slab has given a relief to the middle class sector of our Society, as it will increase their buying power and boost the market.
Mr. Gautam Seth
Joint-Managing Director - HPL & Electric Power Ltd
The annual budget announced by the FM has given special impetus to the power and infrastructure sector and allocating Rs 22,000 crore for renewable and power sector is going to push for faster development and growth across sector. The announcement made by FM to replace energy meters with pre-paid smart meters will further help in complete digitization of the whole system and will help in bring about more financially healthier utilities. The FM has urged state governments to implement smart meters in the next three years and HPL being one of the leading manufacturer of smart meters sees this as a huge opportunity. In addition, the implementation of five Smart city projects in PPP mode will give more opportunities to the private companies.
Founder & CEO - Cube Wealth (ex-co-founder Citrus Payments)
The esop policy is a good acknowledgement of how incentives in private companies work. However the limitations need to be examined to understand whether these work for younger startups in a practical manner. Most employees would exercise options at time if quitting or when the actual sale happens. In the former case this new policy is still imposing taxes, it seems. The devil is in the details.
Dr. GSK Velu
Chairman & MD, Trivitron Healthcare
Budget 2020 is visionary and in accordance with the policy of improving and expanding healthcare services reach to all. Make in India initiative for Medical devices industry has been given a big boost. Imposing health cess on the import of medical devices will help domestic manufacturing companies.
Further, using tax proceeds to fund the creation of healthcare infrastructure will help address issues of capital requirements for building healthcare infra in Tier- I & II cities.
The government is focused on creating the healthcare infrastructure and invest extensively in improving healthcare services in tier I-II cities in the country. Announcement of extending the ambit of Ayushman Bharat through the establishment of PPP model hospitals in 112 new districts of India will improve healthcare infrastructure.
Increasing the budgetary allocation for the healthcare sector to 69,000 crores will enhance primary health coverage and strengthen health and wellness centers (announced under Ayushman Bharat) which will help to reduce the disease burden.
Group CEO, Netcore Solutions
The Budget 2020 was expected to perform a balancing act between agriculture, manufacturing and technology sector — the key drivers of the economy. We believe FM did justice to all 3 by announcing forward-looking programs and initiatives. For a global technology player like us, setting up of data parks in India is a welcome move as this will ensure enhanced data safety because servers and allied infrastructure is likely to be hosted in India, globally benchmarked practices of data encryption will ensure that customers’ data is not misused or profited from as the momentum around Data Protection Law gathers steam. This may just be a pre-cursor to that. While we await for the finer print, programs like Knowledge Clusters should help younger tech companies in securing their IP and safeguarding their core product codes. It will also motivate them to apply AI, ML and deep tech for more refined solutions of existing problems in the Country.
President - TVS Srichakra Ltd
We welcome the steps on revisions in personal income tax slabs under the new tax scheme, with the changed direct tax structure some surplus income will be available which can drive consumption. These are key to boost manufacturing and revive consumer sentiments. Major fund allocation for infrastructure, warehousing and logistics through rail, land and air will allow manufacturers to strengthen the business footprint domestically and are in line with international best practices will make India more competitive globally in the years to come.
Consumers who had deferred their purchases now hold the key to aid growth in the automobile sector as well as the auto components sector. The economy can look forward to be buoyant and we are glad that the government in this budget has introduced steps in different areas to reduce the stress on the manufacturers as well as the customers. Government's step to extend support in the areas of technology upgradation, R&D will boost the auto component sector.
Managing Partner - Unicorn India Ventures
FM’s first full Budget has something for everyone. She tried to address employment generation issues, providing access to education, emphasized on embracing tech and next-gen concepts like IoT, AI and ML. We are happy to see that the FM has kindly agreed to long pending demand from industry on ESOP, the new guidelines will certainly help startups attract good talent and reward suitably through ESOP, the ESOP guidelines will help in structuring the benefit to deserving employees. The increase in the turnover limits from Rs 25 cr to Rs 100 cr for claiming off-set on profits is a welcome announcement. It will boost cash flow situation at early-stage startups who sometimes fail before take off because of liquidity crunch. Also, by exempting companies with turnover upto Rs 5 crore, from audit, reduces compliance burden on them.
The Govt has also proposed a policy on early life and seed stage funding for startups to validate their business idea and run POCs, we believe, this would help grass root development and will encourage more university led IPs would good boost for innovators. However, the fine print will tell us what kind of financial support would early stage startups get in the coming months. We hope the procedure to avail these services are less complicated. Also, our industry’s demand on tax parity still remains unattended. However, we are hopeful that the govt will give it thought in time to come as we are continuously seeing the focus on startups and investors increasing in the last 5 years. Overall, it is a Budget with an aspiration to revive the economy from its current slowdown.
Founder & CEO, Caymus Tech Ventures
The Union Budget 2020 has allocated over Rs One lakh crore for education and skills upgradation in India. That the focus on education and skills was well rounded and didn’t seek to push one or two top verticals like technology and management streams was especially promising. The FM focused on providing access to education for people from underserved and poor sections, making technology and digital formats the delivery mechanisms. Further, in order to open up employment opportunities the creation of initiatives such as one-year long internships and apprenticeships for. Clearly, the idea is to use technology to reach more young people, provide access to education, and empower them to land in-demand jobs.
It is encouraging to see announcements like New Education Policy, financing the education system to attract top talent, online degree courses, bridge courses for support staff, and making India a global education hub. The Government recognizes the urgency with which the world’s largest working age population needs to upskill in order to have a positive impact on society and the economy. FM’s repeated emphasis to deliver education through portals, designing of new courses and providing viability gap funding for colleges and State Government, will help meet aspirations of young Indians who are comfortable using technology to educate and upskill themselves.
Co-founder & CEO - Betterplace
Good move in terms of taxation on startups. All startups are looking at the road towards profitability and deploying that back into the company to expand thereby increasing employment. Increasing the revenue limit to Rs 100 crore and duration to 10 year, a great move forward. The other key aspect is ESOPs. Employees who come on board with ESOPs and build a company along with the founders. It has been a long-standing demand to tax them only at the realisation of ESOPs. The proposed deferred payment of 5 years in tax liability will ensure people get what they deserve and also encash at the first potential opportunity. This would excite them to be part of startups and increase the importance of ESOPs. This would also encourage more employees to participate in the program. Moreover, this would also help more liquidity in the market as the transactions would take place. A win-win for startups and its team.
Jobs generation across the spectrum was also a key point in the Budget speech. There is a need to generate both blue and white-collar jobs for the Country’s youth. While on one hand setting up of online degree courses and internships would give a boost to the education sector, we believe that the infrastructure sector which is set to see massive govt-funded projects being rolled out would generate jobs for grey and blue-collar workers. We work closely with the National Skill Development agency and would be awaiting keenly for a detailed plan to employ youth in construction, operation and maintenance of infrastructure being built in the Country. Furthermore, we find the proposal to design bridge courses for nurses, caregivers and paramedical staff for postings abroad quite promising for the semi-skilled sector. The Ministry should take a leaf out of this and see if the same can also be implemented in India as we see demand for such roles also growing rapidly in the domestic market too.
Mr. Ankit Agarwal
MD - Alankit Ltd.
An encouraging budget, it has reduced the personal income. Tax across levels and added new 15 per cent and 25 per cent slabs; at the same reducing exemptions so one would have to see the benefit that actually comes to the taxpayer.
The focus clearly is on increasing compliance and reducing litigation; further a reduced corporate tax to 15% and tax on ESOP deferred by 5 years are good moves made by the government. Once again the FM Touched upon simplified GST Filing and simplified refund prices; which is the need of the hour. SMS filing are good moves.
CEO & Co-Founder ScoutMyTrip
The setting up of an investment cell is very interesting. Getting access to the Fund of Funds has been something most startups are looking forward to. With the investment cell, this is further augmented by getting advice on setting up your business and also investment options available to startups.
The FM also talked about how the travel and tourism industry is being infused with 2500 Crores this year. As a travel startup, this is great news as much as it is for increasing earnings at a local level for individuals.
MSME’s stand to benefit from a single platform e market place for exchange of goods. We are excited to see what this entails and how it pans out.
Ms. Sumita Tulsiani
Co-founder - TravelDilSe
Startups are being recognised as a strong force behind the aspirational India in todays Budget 2020. As quoted by the finance minister “Entrepreneurship is strength of India.” Setting up a portal based investment clearance cell by the government will uplift the startup ecosystem and will further strengthen India’s position Globally.
Given the Entrepreneurial spirit in India, backed by governments support, the startup ecosystem across sectors especially Agriculture & Health care will generate lot of employment opportunities. Recognition of AI & ML as cutting streams, proposal to have full-fledged online degree programmes showcases the vision to position India as a digital nation.
The budget also focuses on boosting the tourism sector by developing of 5 archaeological sites as Iconic Sites with museums that will indirectly help startup like ours in the travel technology space to expand our business.
Senior Vice President - Ashika Capital Limited
The proactive approach of the Government in building an ecosystem for budding entrepreneurs is laudable. The provision of funding and setting up an organized platform for the same is a much needed move because financial capital often becomes an impediment for growth and sustainability.
I feel we have just touched the tip of immense entrepreneurship potential in India and support from the Government in terms of financial capital will be a major boost.
Founder & CEO, LegalKart
Keeping innovation at the forefront, the Union Budget 2020-2021 is deeply focused on promoting ‘technological development’ through Artificial Intelligence (AI), Machine Learning (ML) and Data Learning that will support immensely in digitalising India. The Government’s proposal on creating a ‘National Logistics policy’ and ‘litigation in the reduction of taxation’ will be of great help to all startup businesses. Furthermore, the introduction of ‘Tax Payer Charter’ will help in curbing the tax harassment.
Must have tools for startups - Recommended by StartupTalky
Subscribe to StartupTalky
Get the latest insights delivered to you right in your inbox