Home Budget 2021 Post Budget Reaction: Startup Sector

Post Budget Reaction: Startup Sector

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Budget 2021

The Finance Minister Nirmala Sitharaman presented the Union Budget 2021 on Monday where she made a lot of announcements for various sectors. This was the first budget after the pandemic where everyone had some expectations from the finance minister. Here are the reactions from the Industry experts.

Vishal Gupta, Co-founder, Brands2Life

3Ps for Union Budget – Promising, Purposeful and Progressive

If the budget is to be summed up in 3 words these would be Promising, Purposeful and Progressive. Greater emphasis has been laid on strengthening the fundamentals that are going to be the crucial drivers of socio-economic development of India in the coming decade. The budget has appropriately addressed the pressing issues and proposed a structured roadmap of revival for all the sectors that have been affected by the pandemic. Both the long term and short term measures have been balanced out strategically to boost the Aatma Nirbhar Bharat Initiative. 

Abhishek Katiyar, Founder, Brands2Life

Reforms and revival are the synonyms of the Union Budget 2021

Reforms and revival are the synonyms of the union budget announced today. This also marks the ambitious beginning of the decade. This budget addresses key challenges that the nation is facing due to pandemic. The intent of government is clear i.e. to build a strong framework for crucial sectors such as healthcare, agriculture, infrastructure and education which contribute significantly towards economic growth. This is an inclusive budget which has provisions for making India a global epicenter for manufacturing, research & innovation, startups and services. Right From corporates to common man the budget has struck a right chord to bring the much needed reforms. 

Jahnabi Phookan, National President, FICCI FLO- 

“The budget proposed by Finance Minister will help to boost the revival of our nation’s economy following the Covid induced Economic Fallout. With its targeted proposals for extending benefits to the women in form of policies such as Mega Investments Textiles Park, Incentivising one-person companies, Implementation of the four labour codes, dedicating 3000 crore to NATS, proposal of funds for the welfare of tea workers especially the women & children in Assam & West Bengal, It will provide a strong foundation for the female strata to rise and support in building an Atmanirbhar Bharat”.

Shammi Pant, Co-Founder, myJen.ai – 

This budget reinforces the focus on the fundamentals with intent to revive the economy from the unprecedented pandemic setback of last year.  In a major way it focuses on Health, Infrastructure and further rationalization of our financial regulations, which is going to give the economy an impetus in revival and put the focus back on fundamentals. The startup community welcomes the attention given in Budget speech of the Finance Ministry and we thank for announcements regarding Tax Holidays and Capital Gain Exemptions.”

Romira Roy, Founder and Chairperson – SEED-

“The six-pack budget proposed by the Finance Minister encompasses the true spirit of sustainable and equal growth. The push for the health sector and the skilling space with tie-ups with UAE and Japan, to begin with, will go a long way. The focus on revamping the health infrastructure, the push for aggressive disinvestment with LIC’s IPOs, Tax holiday for start-up, expansion & strengthening of nameless faceless IT along with the revision of years are something to be applauded. Although tax slab revisions & further involvement of the private sector in the COVID vaccination distribution is something that could have also been looked at. Overall it was a well-balanced budget given the fiscal deficit constraints”

M.I.Siddiqui – Founder & MD – Cosmus Bags & Lugguage

I believe it’s an excellent move to concede the ESOPs or conceding it for a very long time, till they sell it or leave the organization. I believe it’s an exceptionally fascinating move and new companies will have the option to exercise such offices to employ more abilities.


Even though its financing for MSME is likewise an extremely intriguing the subject where a great deal of MSMEs will have the option to use this chance to scale, money their solicitations, and continue to expand their creativity with the extra financing choices that they would have.


At this point in the Union Budget 2020 seems to bring technology to the forefront as an answer in a few zones. As the Budget states that up to this point won’t promptly affect the economy, the investing & planning is forward-looking. The execution of these activities will help in making a more steady and secure future, with the utilization of technology. This is an incredible move since Technology can help tackle issues and set out new open doors. The Investment Clearing Cell is an appreciative move for new businesses and entrepreneurs. The lift towards improving web availability is likewise useful – not only for Startups and infiltration of online business yet towards setting out new work open doors too. The web is basic for empowering individuals and give them a superior ability to decide.

Mr. Ashish Gupta Co-Founder & CEO of Bambinos

“The NEP was a great step for the betterment of Indian education system with the proposed 93,000 crores for the education sector, the government will be focussing on the first layer of 15,000 schools which will then act as mentors for other schools.
In her speech, FM also said that the government would be introducing the legislation this year to implement the setting-up of the Higher Education Commission of India. I feel these  changes will become the cornerstones for India’s Educational reforms which going forward will focus on futuristic learning and capability development.
Focus on much needed native languages with setting up of National Language Translation Mission will be a boost to Indian Education modernisation under NEP”.
Rishi Ahuja, Founder, Klip VR Immersive Tech- 

“It’s heartening to see the focus on Education in Finance Minister’s budget speech where she rightly said youth of the country have abundant skills and it needs proper channelization. This year will be historic and motivational for our youth with events like 75th Year of Independence and Chandrayaan Mission 3. The education budget and steps announced for effective implementation of National Education Policy, increased focus on the role of technology will provide further opportunities for growth and sustained development of the sector and students. Rishi Ahuja, Klip VR Immersive Tech”

Mr. Venkatesh K Rao, MD, Xfurbish.com

We would like to laud the government for growth driven budget. The budget emphasizes the need to boost entrepreneurship which will certainly fuel our country’s economic growth. Provisions such as allowing the creation of one-person companies (OPC’s) without restrictions, extending the claim period for a tax holiday for startups and extending the capital gains exemption to encourage investments will help promote the growth of India’s already burgeoning startup ecosystem. Apart from this, reduction in compliance burdens through single registration and licensing, and filing of online returns is also a step in the right direction. 

Mr. Nikhil Das, Founder, Agdhi

The budget presented by Nirmala Sitharaman Ji today acknowledged the importance of agriculture in India’s economy as one of the central pillars employing 15% of the population. The central budget has shown confidence in the Minimum Support Price (MSP) regime and has upheld it for the farmer. The budget has promised 1.5 times MSP against the cost of production across all commodities. This is likely to bring in more innovation and adoption of technology in farming. Besides this, the budget has proposed an increase in agriculture credit.

The budget has realized the importance of start-ups in job creation and has extended the tax holiday for startups till March 2022. Already withering under the impact of the pandemic, the announcement has come as a big relief for startups that have become a critical employment generator with 4,70,000 jobs. Such measures are likely to boost sentiments across the board among potential entrepreneurs who are keen on entering the market with their business ideas.

These announcements in the budget were preceded by some welcome news for startups that included the broadening of the definition of startups and approval of the “Startup India Seed Fund Scheme” which comes with a corpus of Rs 945 crore. Overall, the budget has decided on supporting sectors that generate employment and seeks to revive an economy that has been severely hit by a global pandemic.

Mr. Chet Jainn, Founder & CEO, Crowdera

There is some good news for NRIs with the elimination of double taxation. Reducing residency requirements for incorporation of OPCs (including NRIs) will boost the startup ecosystem, and startups are getting tax breaks for one more year, is undoubtedly a good sign. Another good news was to see an increase in the number of Indian taxpayers, definitely a good sign for businesses targeting tax-paying citizens.


NGOs in India have never been so active before, and it is the time for them to shape up a new Giving Economy. I feel there should have been some compliance relief in fundraising for the charity/NGO sector that helped India Inc get through the pandemic during the lockdown. Although the latest amendments to Section 135 of the Companies Act 2013, approved as of January 22, 2021, have added some stringent responsibilities on corporations to ensure their CSR will help.

Mr. Kavin Kumar Kandasamy, CEO and Founder ‘MY’

“The budget reflects the very stable mindset of the Government. This budget is a sign of confidence for businesses to thrive under testing times.

The increased emphasis on Atmanirbhan Bharat is a much-wanted scheme and the Finance Minister’s announcement to provide tax breaks for start-ups for another year is truly beneficial.

In addition to this, the Finance Minister has extended the capital gain benefits for start-ups for another year which is also very appreciative.

Access to markets and seed funding under the Atmanirbhan scheme needs to be streamlined for better distribution of funding to deserving start-ups.

Overall, this budget is a most welcomed and commendable one that installs hope, especially to the start-ups to thrive and strive for a self-reliant India”

Dr. Gaurav Hirey, Founder & CEO, GoEvals


“The focus of India’s 2021 Union budget is clearly on economic development, infrastructure & health and wellness. The biggest need is to push consumer spending and I think this budget should achieve a good level of success if it is implemented in its true spirit. Initiatives like increasing the amount of spending in health & wellbeing which was long overdue will definitely help. As will building of road infrastructure, boosting the textile industry & creating more ports among others. Given the extreme circumstances faced due to the pandemic the budget comes across as balanced and practical.
However, from a start-up ecosystem perspective I am not sure what this budget is really offering to start-ups. Extension on the tax holiday by a year & reducing margin requirements are not significant and start-ups are not getting the importance that they surely deserve. There is no concrete proposal on easing the process for doing business nor on ground real support in terms of finance & education of start-ups which continues to be a major issue. End of day how this budget will translate into real help for struggling start-ups given what they have faced in the past year is a big question and I believe this is a lost opportunity in this area.”

Hitesh Jirawla, Founder CEO, Cubictree

The FM presented a digital Budget, a yet another first of India. It is a small step but goes to show the intent of this govt to move to digital transformation in every way possible. Indian Courts have been under tremendous pressure with limited availability of judges. Longer litigation results in higher costs, procedural hassles that consumers and companies suffer. The proposed MCA21 Version 3.0 will roll out e-scrutiny and other compliance management initiatives thereby bringing down the legal costs for companies and individuals. Use of deep tech, will over time impact the judgement delivery thereby making it faster and for some standard cases, there is a possibility to introduce an element of automation in documentation and other legal processes. We believe the govt has taken a lead in addressing the problems that currently ails the judiciary system in our country. Over time, India may see fast closer of matters and justice served to the people who have been waiting a long time.

Pankit Desai, Co-founder CEO, Sequretek

The much-awaited Budget 2021 has provided a significant push for healthcare, agriculture and rural economy, but unfortunately nothing concrete for startups and the surrounding ecosystem. For the majority of startups, demand remains the same, nothing changes, its business as usual. Forming a one-person company doesn’t help startups whatsoever unless they want startups to form a single person company. There is some push for fintech and startups from this sector will stand to benefit, however, the budget did not share anything substantial in terms of ease of doing business, compliance or GST taxation that would make life any different for a cybersecurity company like ours. I am hoping that the stimulus and other investments that allow the economy to do well, indirectly will support us as we finally serve that economy in some shape and form through our customers.

Ratna Mehta, Executive Vice President, Wadhwani Catalyst Fund at Wadhwani Foundation

“This is a budget of hope, a wand of positivity. This was a critical budget in the face of exceptionally difficult circumstances. A lot of hopes were pinned on the budget to pull the economy back to normalcy. FM was walking a tight rope of managing the deficits and boosting the economy. But she seems to have saved the day, increased the spending to boost employment and thereby consumption, which is a great move and need of the hour. Also, healthcare needed support where she has increased the allocation significantly. Startups will benefit from the tax exemptions and focus on digitisation, especially the startups in healthcare, logistics, education who will see increased growth opportunities. The corporate sector was spared cess and tax increases which will let the recovery continue undisturbed. To sum up, the budget of hope seems to be doing the right things, now the devil will be in the details and execution.”

Mr Sourjyendu Medda, Founder, CBO and CFO, DealShare

“This Union Budget was one of the most anticipated budgets especially by the start-up and ecommerce ecosystem. It was a pro-technology and a pro-growth budget which focused on re-energizing the healthcare, infrastructure, agriculture and banking sector by numerous employment and capital generating reforms.

For the start-up ecosystem, this budget has brought in some relief for the ecosystem like:

·           Extension for claiming tax holiday by a year which will help in reducing cost burden,
·           Extending the capital gains exemption for investment in start-ups by a year which will create more working capital,
·           Reducing residency limit for and Indian citizen to set up an OPC from 182 days to 120 days and also allow Non-Resident Indians (NRIs) to incorporate OPCs in India,
·           Allocating INR 15,700 CR to MSME sector which will boost the growth of indigenous brands
·           Reducing margin money requirement from 25% to 15% which will open new doors of opportunity for startups which will help them upscale the business

However, there is still a lot missing in context. Firstly, from a tax perspective, introducing a more long-term exemption structure on capital gains would have been more helpful. The budget could have looked at introducing ‘a no dividend and no capital tax mechanism’ which can help companies funded by VCs to infuse more working capital into their operations.

From a regulatory perspective, the budget should have looked at creating a single window clearance framework for start-ups and small businesses for aspects like company registration, GST registration, company incorporation, shop establishment, etc. which would have helped to reduce the compliance burden on companies.

One of the other rewarding moves by the government is to extend social security benefits to gig and platforms workers which will now add a much-needed safety net for them and will also help the sector grow in a sustainable way.

Given that India is the third most robust start-up industry in the world and ranks 4th among countries with maximum unicorns (currently 28 in India), the budget needed to look at providing more impetus to this sector, which significantly contributes to the GDP of the country and is a key employment generator.”
 

Mr Vijayaraghavan Venugopal, Co Founder, Fast&Up

“The budget 2021-22 has been presented in very trying and unusual times. From a SME perspective we are pretty happy to see the doubling in outlay to INR 15,700 crore to boost the sector. Additionally being in the nutrition and health sector, the emphasis on healthcare is very heartening. The outlay on preventive as well as curative healthcare on one hand increases the budget available to the sector and also puts the focus on making India fitter and healthier. This is a starting step towards fulfilling the government’s dream of an Atmanirbhar Bharat and making India a hub for quality nutrition and healthcare facilities.”

Prateek Rathee, Founder and CEO, Homezop

“Union Budget 2021 has brought many hopes with it especially for startups and MSMEs. The big boom for the sector is the step to incorporate one person company without any restriction on paid-up limit with no restriction in paid-up capital and turnover to incentivize innovation in startups, as well as an updating the definition of small companies under Companies Act, 2013 by raising the capital base to Rs 2 crore from the current limit of Rs 50 lakh. This will hugely impact the small business enterprises in India in a positive way as it will increase the numbers of startups and MSMEs and also boost the entrepreneurship spirit in the country.

The Budget also decriminalized limited liability partnerships, with the flexibility to convert a company to any form of management which will benefit more than two lakh companies in easing the legal compliance requirement. Finance Minister also announced to increase the number of entrepreneurs in India by reducing the residency limit for any Indian to 120 days from 3 years.”

Nidhi Agarwal, Founder, Bookaworkshop

A tax holiday for a whole year is the best kind of holiday a startup owner could’ve asked for. Getting to keep the 25% of your revenue, not only helps with creating more growth for the startup and having more resources at your disposal but also takes away some weight off the founder’s shoulders.

The pandemic has been a ticket to a lot of opportunities but has also seen the downfall of many.

This definitely helps ease matters and let’s you have an extra fund to do more. When you run a startup, every penny counts!

Suraj Punjabi, Founder of Edviseme Tech Venture LLP

“Education Budget 2021 focuses on effective implementation of NEP, International Research Collaboration and setting up of Higher Education Commission. The move towards encouraging higher education in India through the ‘Study in India’ initiative is highly commendable. I feel this is a very good budget as Employment will rise as MSME’s get incentives, given importance on Education and Government spending and many steps are taken. Thankful to the government for allocating huge funds on Education but I feel the government should maintain a proper server for Job Applications as well. A great step taken by the government to open 1000 Sainik Schools and 750 Eklavya Schools which will be setup in tribal areas. Also, a good initiative by the central government to come up with 15000 schools in Ladakh”

Saurabh Jaitly, Co-Founder, Shippigo

“Eligibility for Tax Holiday for Startups has been extended by one more year to 31 Mar 2022 and the Exemption from capital gain in investment in startups has been increased by one more year to 31 Mar 2022. This will provide some relief to startup’s facing the heat of the pandemic. The fund infusion into the msme sector will also act as an enabler. Ease of doing business has also been enhanced for individuals looking to establish opc’s.”

Mrs. Charu Noheria, Co-founder and COO, Practically

The budget for FY 2021-22 has been a balanced one. The decision to strengthen the education sector as per National Education Policy, has certainly been one of the highlights of the Union Budget 2021. We welcome the government’s move to set up a Higher Education Commission of India and its plans to integrate nine cities, including Hyderabad, our home market, under an umbrella structure for higher education institutions to allow for better synergy among them. Also, the government’s decision to extend the tax holiday by one more year, to March 2022 along with capital gains exemption will help India’s startup ecosystem deal with the pandemic blues.

Apoorv Jain, CEO, and Co-Founder, Express Stores
 
Archana Sharma, Founder, And MD, Samvedna Senior Care
 “The budget gave major emphasis to healthcare and infra sectors. Besides, a host of substantial announcements were made on the divestment front, including the coming IPO of Life Insurance Corporation. Incentivization to one person company by removing capital limits, free conversions and overhauling residency limits definitely will boost the startup ecosystem in India. We welcome the move to help India’s startups beat pandemic blues, the tax holiday extended by one more year to March 2022 during Budget presentations today. The capital gains exemption given to startups was also extended by a year more.”

Chahatt Khanna , Director of AMMARZO

“The textile industry, which is among the largest-hit sectors due to COVID-19 has urged the government to implement a constant GST for apparel industry and to abolish anti-dumping duties on viscose staple fibre (VSF) in the upcoming budget. This indeed is a superb news for us since because of the Covid-19, the textile & the fashion industry has suffered a lot. During the global pandemic, like any other fashion brands, Ammarzo has suffered as well, but we were strong enough to keep it going all through out the pandemic. Now the new budget is definitely going to make the work more easy and better for us!

It is definitely a cherry on the cake knowing that the textile ministry has proposed to develop seven Mega Integrated Textile Region and Apparel parks to double the industry size to $300 billion by 2025-26.

On top of that it’s more exciting to know that the mega textile parks will have consolidated facilities and quick turnaround time for minimizing transportation losses “ 

Mr. Gaurav Shinh, Founder & CEO , DAAS Labs- 

The Budget 2021-22 has left the data science community quite excited for what is to come. For me it was really interesting when the Government announced that it will launch multiple data analytics, AI, ML driven models for e-security, e-education, e- consultation, and compliance management. Also, the prospect of using Artificial Intelligence and Machine Learning in GST Fraud Tracking is quite motivating and intriguing.

The Government’s continued support for the startup is quite uplifting as the Government is setting aside Rs 15,700 crore in FY22 and has reduced margin money requirement from 25% to 15% for startups. The proposal of extending the tax holiday for start-ups by one more year will also give more confidence to the entrepreneurs.

Rajat Jadhav, Co-founder, Bold Care

“The budget has rightfully taken into account the health of the scathed startup ecosystem in India and has simultaneously acknowledged their potential to change the face of the Indian economy.

The extension of the tax holiday by a year is a welcome move that will provide relief and have a positive effect on the start-up sector. The increased focus on capital infusion and ‘Make in India’ initiatives will encourage start-ups to innovate and expand their folds in a non-strenuous and nurturing environment. Paid-up capital for enterprises with a turnover of upto Rs. 2.5 crores will inspire newer investors in the start-up space while the focus on FDI will help existing players to transform themselves into global case studies. Also, the increased impetus given to skill development and R&D will enhance the investment climate and spur growth leading the path for start up’s of today to emerge as MNCs of tomorrow. Additionally, the technology-driven measures along with simplification of the GST structure will add a new dimension to the long term development of this sector. With a connectivity focussed approach and a digital transaction inclined culture, the union budget has made it easier for startups to deepen their hold over the geographies of the country.

Also, ease of business will help startups maneuver the marketplace and flourish in a competitive economy.”

Mr Rohit Warrier, CEO and Founder, Warrier Safe Shields

“Much anticipated Budget 2021 under most difficult circumstances seems to be balanced. Start ups gets yet another with the tax holiday being extended by a year.  Incentive on registering a One Person Company also makes sense since it is the most formal and stable way to do business as well as attract investors in the future.”
 
“FDI hike to 74% in insurance sector is debatable, yet encouraging. Reducing the time limit of re-assessment of file give a good breather especially the startups, since there will quite a possibility of a startup goofing up with documentation un-intentionally and this gives them much relief on focusing on growing the business.”

Mr Vijayaraghavan Venugopal, Co Founder, Fast&Up 

“The budget 2021-22 has been presented in very trying and unusual times. From a SME perspective we are pretty happy to see the doubling in outlay to INR 15,700 crore to boost the sector. Additionally being in the nutrition and health sector, the emphasis on healthcare is very heartening. The outlay on preventive as well as curative healthcare on one hand increases the budget available to the sector and also puts the focus on making India fitter and healthier. This is a starting step towards fulfilling the government’s dream of an Atmanirbhar Bharat and making India a hub for quality nutrition and healthcare facilities.”

Gaurang Sinha, Director of Go-to-Market Strategy at Flock

“We welcome the Finance Minister’s announcement to introduce the scheme allowing 1-person company(s) for start-ups and innovators to be exempted from paid-up capitals and turnover norms, in the Union Budget today. This will enable India to develop new technologies and boost employment like never before. Additionally, the government’s move towards boosting emerging technologies such as the internet of things (IoT), machine learning (ML), artificial intelligence (AI) and data analytics, will accelerate the growth of our digital economy. Further, the adoption of video conferencing for various tasks by the Government will encourage the use and demand for professional communication and collaboration platforms. We believe that with all of these measures, this new decade looks great for the Indian start-up ecosystem. “

Mr. Rishi Agrawal, Co-Founder & CEO, Avantis Regtech – a TeamLease Group company

“I am really excited about the focus on ease of doing business in the budget speech. The finance minister acknowledged that ease of compliance is a priority for the country. The budget clearly pushes the digital governance agenda aggressively. I believe that digital transformation can do for India what manufacturing did for China. It can be a key differentiator and position us as a global role model. The finance minister reflected India Inc’s wishlist as she highlighted the promotion of faceless, contactless, paperless and online systems. This will lend the transparency, accountability and effective governance that corporate India seeks. Focus on eCourts and electronic tribunals will dramatically reduce the pendency of cases in courts and increase judicial efficiency. This will directly improve India’s standing on the enforcing contract parameter in the world bank ease of doing business rankings. One thing that I hoped to see that was missing was the constitution of a compliance commission to rationalise the regulatory burden especially for MSMEs and Start ups. Overall, the budget speech set the right intent but as they say, the devil is in the details.”

 

Mr Rohit Warrier, CEO and Founder, Warrier Safe Shields

“Much anticipated Budget 2021 under most difficult circumstances seems to be balanced. Start ups gets yet another with the tax holiday being extended by a year.  Incentive on registering a One Person Company also makes sense since it is the most formal and stable way to do business as well as attract investors in the future.”

“FDI hike to 74% in insurance sector is debatable, yet encouraging. Reducing the time limit of re-assessment of file give a good breather especially the startups, since there will quite a possibility of a startup goofing up with documentation un-intentionally and this gives them much relief on focusing on growing the business.”

Dr. Gaurav Hirey, Founder & CEO, GoEvals

“The focus of India’s 2021 Union budget is clearly on economic development, infrastructure & health and wellness. The biggest need is to push consumer spending and I think this budget should achieve a good level of success if it is implemented in its true spirit. Initiatives like increasing the amount of spending in health & wellbeing which was long overdue will definitely help. As will building of road infrastructure, boosting the textile industry & creating more ports among others. Given the extreme circumstances faced due to the pandemic the budget comes across as balanced and practical.
However, from a start-up ecosystem perspective I am not sure what this budget is really offering to start-ups. Extension on the tax holiday by a year & reducing margin requirements are not significant and start-ups are not getting the importance that they surely deserve. There is no concrete proposal on easing the process for doing business nor on ground real support in terms of finance & education of start-ups which continues to be a major issue. End of day how this budget will translate into real help for struggling start-ups given what they have faced in the past year is a big question and I believe this is a lost opportunity in this area.”

Mr. Himanshu Gupta, Founder and CEO of Lawyered

The FM’s speech briefly touched upon aspects of MSME, entrepreneurship and innovation. The allocation of funds for MSMEs has doubled to INR 15,700 and the incorporation of small companies and one person companies will be aided by the amendments in the requirement of paid-up capital and turnover. This will provide a boost to innovators, entrepreneurs and MSMEs. The budget did not specifically talk about strengthening aspects of technology, communication, financial inclusion, AI/ML etc. – but these will definitely be positively impacted by some of the other announcements made today. Increasing the FDI cap in the insurance sector from 49% to 74% will make it more lucrative for foreign companies to setup shop and also have ownership of the business. This will provide a boost to the insurance tech sector in the country. The allocation of INR 3000 crore for the country’s first “digital census” will generate goodwill among those who are betting big on digitalization and tech. The consolidation of provisions of the SEBI Act, Depositories Act, Securities Contracts Regulation Act and other similar acts will also impact ease of doing business positively – making it more lucrative for businesses to open up and aim towards going public.

Navam Gupta, Co-Founder at WedHaven

“The budget 2021 clearly reflects the government’s objective to revive the economy and it’s evident it believes that Startups are not only crucial but will also be at the forefront of this revival.
Covid has definitely taken a heavy toll on a lot of startups, pushing them to the very edge and with the tax holiday extension & increase in exemption limits we are certain a lot of startups might just survive this downturn.
Lastly, in this budget – OPC (One person company) came back into the limelight with added benefits, which will help promote another set of entrepreneurs and add to our growing startups & small businesses community.”

Jalak Rawal, Partner and COO, Monk Entertainment

“Fair budget after a bad year, which is opening doors for the startup industry to grow faster, supporting sun rise sectors like solar and drones. Making honest income tax payers life easier with reduced compliance giving a healing touch. Some good capital raising methods like FDI in insurance raised from 49% to 74% with precautions. Launching IPO for LIC. Support for MSME by increasing customs duty. Feel good factor for senior citizens post 75 years as they receive an exemption from filing returns. Finally, some digital adoption for the first digital census in history receiving an allocation of 3700 cr this year. Overall budget seemed standard and well thought out. We should be able to see more streamlined processes, benefits to the end citizen and development around the nation in the long run with major infrastructure and metro projects. This budget seems like a budding plant, the fruits are to be cherished over years with the right sunlight and watering.”

Shashank Udupa, Education Influencer and CFO, Avalon Meta 

“The education sector got a huge boost by the government in the budget 2021. The government has allocated a budget of 54,000 cr for school education and around 38,000 crores for high school education. This shows a 16% YoY increase in the budget allocation which shows that the government is very serious about upskilling the youth and providing good higher education. One of the key focuses of the government in this budget was their emphasis on creating jobs at scale. The budget also spoke about a new umbrella like structure being created for all the educational institutes in India so that the communication flow is improved. This is a clear positive sign that the government is serious about making the current youth of our country employable by providing them with the right infrastructure for education. All in all a positive for education sector.”

Sanjyot Keer, Chef and Founder, Your Food Lab

“The Indian hospitality, travel & tourism sector had great expectations from the Union budget FY 21-22. The honourable Finance Minister announced budget proposals for improving rail, road, ports, metro infrastructure, airports and vista coaches in tourism routes. These proposals will benefit the travel and tourism sector in the long term. There is no specific relief or proposals to boost the hospitality, travel and tourism sector immediately in the budget which could have been a boost for the sector’s revival. Immediate resource allocation or reforms could have been a big support for the sector. The government has not announced COVID-19 cess & the allocation for COVID-19 vaccination is positive for the sector as more people get vaccinated, people would be comfortable travelling again which will be a boost for the sector.”

Rohit Kamath, Co-Founder and Director, India Hemp Organics

“It is nice to see that the government is pro-actively looking to better the compliance and definition of Small Companies, under the Companies Act, 2013 by increasing the threshold of paid-up capital and turnover which will benefit more than 2,00,00+ start-ups. The budget also incentivises incorporation of OPC’s, and has extended the eligibility of claiming tax holidays and capital gains exemption by one more year,  which will further boost the compliance and funding of the start-up ecosystem.”

Mr. Puneet Gupta, Founder & CEO – AstroTalk

“This year’s budget has taken a number of steps to promote and support startups. As opposed to last year’s allocation, this year’s budget has allocated Rs 15,700 crore to the sector. Not just this, it has also emphasized on creating a separate framework of Data Analytics, Machine Learning (ML), and Artificial Intelligence (AI) to assist the companies. Further, to mitigate the lost months during the COVID-19 pandemic, FM Nirmala Sitharaman also proposed to incentivize incorporation of one-person companies without any limit on paid-up capital to help startups and innovators. All of it was much needed to boost entrepreneurship in India and promote Aatmanirbhar Bharat.”

Shailesh K. Nevatia, Founder Grandeavour Communication

“The union budget 2021 has laid a strong framework for a quick economic revival. The core areas of development have been given significant consideration. Massive increase in the healthcare budget shows the government’s intent towards preparing the nation for future risks. Greater allocation on Infrastructure development is going to have a multiplier effect in the economy. For MSMEs, startups and other small scale businesses the budget has been positive. The Aatma Nirbhar Bharat initiative is surely going to gain momentum from the series of measures that have been announced.”

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