Budget could have  been kinder to startups

Vinayak, Farman, Vivek, Neeraj, Kumar, Kushang, Keerthivasan, Piyush

Budget could have been kinder to startups

Painful struggle to overcome pandemic losses

The budget has some hits and misses for the start-up ecosystem. Exemption on capital gains on investments in startups and allowing OPC for NRIs will surely improve investment opportunities and cash liquidity. Tax holiday also comes as a relief to the startups that are striving to survive in these challenging times - Vinayak Nath- Founder and CEO, My Place Coworking India's 1sy integrated Coworking

Industries like restaurant chains have suffered the pandemic blow the most. Even more if they were startups. In this situation, Budget2021 has provided a little support in terms of tax holiday. However, benefits like easy loans at better interest rates with simpler procedures could make it a lot easier. Input tax credit was expected to be brought back in the restaurant system. Without which we are paying more than GST to the government and we end up increasing our operations cost by 15 %  - Farman Beig- founder and CEO of Wat-a-Burger a dynamic burger joint.

The budget has slightly opened the window for startups by allowing OPCs for NRIs. This might indirectly attract investors which is the need of the hour for the entire startups community. Further, incentivising OPC is going to help startups at an early stage. Extension of tax holidation for startups is definitely a step that was needed as a lot of entrepreneurs and businesses have been starving due to pandemic and this brings some relief to them. However, there was definitely a wider scope of financial support given that everybody is on the road to recovery - Vivek Sharma- Founder and CEO, Fixcraft

The funding in the startup ecosystem has been dry in the last one year. To support the community it was imperative to attract investors. Extension of capital gains exemptions on startup investments and allowing NRIs to establish OPCs are two announcements that might water the dry field for entrepreneurs. This will also widen the possibilities for startup investment platforms that used to scout for angel investors outside mostly. This is going to make domestic investments market healthier. - Neeraj Tyagi- Founder and CEO, We Founder Circle- startup investment platform

Strengthening the financial scenario definitely stood at the top of the priority list. Hence, the announcement of the ease of establishment of the finance institution is a great move. Also, embracing the technologies like AI and ML is the need of hour. However, we expect the government to enhance the financial system and create more jobs by welcoming blockchain and cryptocurrency. India has become key crypto market in less than a year since Supreme court uplifted the ban. The Indian government can be at the forefront of crypto regulation, to be adopted worldwide. Smart regulations can help eliminate scams and enable legitimate business to thrive, assisting the government's ambition for a digital India to flourish. -Kumar Gaurav- Founder and CEO, Cashaa 

The budget does provide ways that could attract talented entrepreneurs and investors by allowing OPC for NRIs. However, the startup market requires immediate financial support too. Extension of Tax Holiday provides relief but the pipeline that could provide more cash in the ecosystem is still missing. Nevertheless, relief from capital gains is a welcome move. It has been a balanced budget 2021 overall. - Kushang, CEO and Co-Founder, SupplyNote.

Early stage startups have been looking for opportunities to grow. Post pandemic it became more challenging to get finance support for many entrepreneurs. Plans had come to a halt for the ones at concept stage. A lot of Indian startup would look for investors outside India. As per the budget 2021 announcement, NRIs can now incorporate one person company. This means that it would be easier for NRI investors to operate and fund the budding entrepreneurs within India. This is good news. Keerthivasan Subramanian- Founder & CEO, Playtoome.

We appreciate how the government has addressed major facets of the education system in the Budget 2021. The establishment of a regulatory mechanism to permit different degrees and enhance collaboration with foreign higher educational institutions is going to add more credibility into the system which was until now neglected. The budget also highlighted the beginning of legislation for the Higher Education Commission of India. Once in place, it will address standard-setting, accreditation, regulation, and funding. This is expected to act as a catalyst in connecting the entire higher education system in India and abroad. The aspirants often lack guidance and support when it comes to availing higher education from foreign institutions. This step is going to rectify the same for students and parents. - Piyush Bhartiya- Co-founder of AdmitKard- edtech startup.  

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