Union Budget 2022: Long Wishlist Of Startups Trying To Recover From Covid Impact
- ByStartupStory | February 1, 2022
Companies count on the authorities to increase the startup and Made in India initiative to assist home-grown manufacturers to develop and thrive withinside the Indian market.
Prime Minister Narendra Modi has been a robust proponent of India`s developing startup ecosystems. In 2016, the Startup India initiative turned into released through the high minister for constructing a strong startup way of life withinside the country. And withinside the remaining 5 years, startups in India have grown to over 60,000 from much less than 500, famous authorities data.
Tax exemption is relatively predicted from the price range together with startup-pleasant regulations that could permit agencies to spend on innovation, beautify ease of doing commercial enterprise and decrease compliance costs. Subsidies are any other component that lots of agencies might be expecting, especially the digital automobile sector.
Companies also are hoping the authorities to increase the startup and Made in India initiative to assist home-grown manufacturers to develop and thrive withinside the Indian market.
We spoke to a bunch of leaders from the startup agencies who had numerous expectancies from the Union Budget. Here’s a look.
Financing Options For EV Commercial Vehicle Buyers
“At a time whilst EV adoption is gaining unparalleled momentum despite many challenges, in the imminent Union Budget 2022, we at Etrio would love to peer the Finance Minister cope with the critically-critical vicinity of creating huge and sundry variety of financing alternatives to be had for EV industrial vehicles` buyers – as that is extraordinarily essential for similarly improved uptake of EVs in India, going forward,” stated Deepak MV, CEO & Co-Founder, Etrio.
To this end, he introduced, the authorities must make the EV area a concern lending area for the economic institutions. “Additionally, decreasing the GST taxation on Lithium-ion batteries and EV spare elements and additives also can be a superb breakthrough from the EV production and OEM factor of view. Given that improved adoption of EVs withinside the logistics and last-mile shipping, phase is the want of the hour to lessen Carbon emissions, the Government has to additionally give you extra sops or incentives for the nation`s fleet aggregators to replace totally from IC engines to EVs to pave a sustainable and zero-emissions future. Last but not least, we additionally wish that this Budget solution the want for revitalizes the B2B retro fitment (ICE to EV conversion) area pan-India via means of bringing retro fitment beneath near the ambit of FAME-II.”
Textile and Fashion Industry Require Urgent Reforms.
Abhishek Pathak, Founder & CEO, Greenware: “I assume the finances to put down a 5-12 months plan to growth participation/utilization of renewable strength assets via way of means of decentralized small industries and craft area. The authorities must make a sure boom in procurement from start-ups operating with renewable strength assets. The fabric enterprise by myself can lessen carbon footprint via means of a massive margin in conjunction with growing jobs on the nearby degree. The fabric and Fashion enterprise desires pressing reforms to lessen polluting earth. We are taking one step at a time and presently are very small in opposition to the problem. However, we agree that the sun-vastra fee chain if introduced with herbal fibers and natural techniques will create a tremendous effect in decreasing carbon footprint from the fabric enterprise. If best 5% of Indian villages come to be sun charkha clusters (around 30,000), it may produce a hundred and eighty Cr kgs cotton yarn which is nearly 50% of India`s cutting-edge cotton yarn capacity, and generate livelihood for 1.2 Cr human beings without-migrating from their villages.”
Expand Make in India Initiative
Shivam Singh, CEO & Co-Founder, Awshad, stated: “As a startup withinside the well being and clinical hashish area, we’ve benefited from the sooner authorities tasks just like the startup initiative and the Make in India initiative that helped us create an area for ourselves. However, in 2022 we are hoping to peer the Government to make bigger on those schemes and assist domestic-grown manufacturers to develop and thrive withinside the Indian marketplace. We additionally wish there might be incentives in the area to assist Indian manufacturers to make bigger their markets the world over and assist in carrying FDI to the exponentially developing well-being area. We additionally wish the authorities will provide greater tax rest to startups withinside the well-being area to assist them to compete with massive multinationals eyeing to manipulate this area.”
Extension of Tax Holiday for Startups
Dr. Navneet Gupta, Founder & CEO at YPay: “Extension of the tax excursion for startups might be a superb manner for the authorities to reveal its dedication closer to constructing a sturdy and dynamic startup environment. Investment into infrastructure that might sell virtual bills desires to preserve rapidly. There is a lot of unexplored capacity in Tier-2 and three cities, not to mention villages. The tempo of funding best desires to move up if this capacity is to be meaningfully utilized. For Non-Banks and PPI corporations consisting of ours, the idiosyncrasies of and adjustments in KYC necessities are in reality the first-rate nuisance. KYC norms result in numerous troubles consisting of registration problems for customers. And finally, the authorities desire to peer the fintech enterprise as an associate in assisting formalize the financial system and getting banking offerings to folks that do now no longer have get entry to them.”
Policies for Unorganized Sector
Neha Indoria, co-founder, Boingg! (D2C kid’s fixtures brand): The domestic furniture market has grown at a CAGR of 10-11% in the last 5 years. Yet, 80% of this market remains unorganised. With the focus on increasing consumption and capital expenditure that this budget has brought in, furniture manufacturers who are focused on ‘Make in India’ can expect to increase their organised market base, bring economies of scale and in turn make themselves cost competitive for the international export market as well.
Ease of Doing Business
Pankit Desai, co-founder & CEO, Sequretek (Mumbai primarily based Cybersecurity organization), stated: “For startups, the essential trouble is still eased of doing commercial enterprise and assisting ease coins to go with the drift challenges.”
She counseled a number of the particular regions wherein a few higher aid is desirable. These are:
Employee inventory alternatives especially across the taxation effect whilst the shares vest (however now no longer exercised) and provision for founders to obtain ESOPs.
There isn’t any distinction withinside the regulatory compliances like ROC, GST, IT, RBI whether or not you’re a startup or a huge organization. The quantity of office work this is had to run the organization stays the same.
By default for the length of which you are a registered startup, one desires to be in a decreased TDS bracket because the coins with the drift problems are pretty severe.
Tax Exemptions on Funds Received and GST Reduction
Rohan Verma, Co-founder, and CEO of Breathe Well-being (Health-tech, virtual therapeutics organization centered on Type 2 Diabetes Reversal and management), stated: “India is domestic to over 5000 fitness centered startups and with progressive fitness-tech gamers entering the marketplace there may be a growing hobby a few of the Indian in addition to the international investor community. According to the latest facts from London & Partners and Dealroom.co, India has received $1.nine billion investment from VCs in 2021, bringing overall VC investments withinside the fitness-tech area to $four.four billion because 2016. Today, India ranks 4th globally for VC investments.
Extention of FAME Subsidy Corpus
Dr. Akshay Singhal, Founder, Log9 materials, said, “In the approaching Union Budget, from the EV surroundings perspective, we are hoping to peer that the FAME Subsidy corpus has to be prolonged to EV unfashionable fitment kits. Additionally, extra R&D incentives have to take delivery of for power garage and EV generation-associated traits in India, in addition to R&D investments made into neighborhood generation traits, which have to be made 100 adjustable in opposition to company taxes.”
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