Budget 2019: To Impact On Indian Startups
While the union Finance Minister Arun Jaitley left unexpectedly to the US for some medical reasons, the interim finance minister Piyush Goyal, now presents, the Budget 2019 where this interim Budget of the BJP Government will point to strong optics and populist measures. This could easily be watched while the general elections are round the corner.
Modi government on a way had launched 150 scheme and policies for the conceptualisation of the union Budget of India, among which, every scheme or policy is flagged off by Prime Minister Narendra Modi, yet, everyone’s interest has been rather up, inspite of being this budget on vote-on-account.
As the President speaks while opening the Budget Session to the Parliament, healthcare and agriculture are reported to the main focus for Goyal, while speaking of the Budget. Also, the flagship schemes such as, Ayushman Bharat, MUDRA, Digital India, Startup India and Skill India are likely to get the expected fair share of the Budgetary allocation.
Apart from the startup ecosystem, fraternity expects Goyal to address certain multiple policy-related issues that are creating a hindrance for the startups and investors. 25% of the investor chose angel tax as the biggest issue to resolve, according to a report. certain other expectations demanded from the Union Budget 2019 of the startups are summarised accordingly, below:
Need a policy thrust to increase digital transactions
Address the issue of ‘ease of shutting down’
Tax holiday for government-registered startups from 3 to 5 years More clarity on disbursal of Fund of Funds
Clarity on Tax on ESOPs
India has become 2nd largest hub of startups. “Our government hopes to create 1 Lakh digital villages in the next 5 years. Jan Dhan, Aadhaar mobile, and direct benefit transfer have been game changers. Aadhaar is now near-universally implemented and has helped ensure the poor get the benefit of government schemes directly in their bank accounts.”exclaimed the interim finance minister Piyush Goyal while speaking of furthering the Budget in the next 5 years.
India startups can surely exemplify an extreme role for the innovating ideas and performances, social impacts on the nation and reaching out to unidentified segments. With government’s inclination towards the sector, enhanced investor interest is also formulated in the near term.
“We will source 25% material from SMEs and 3% from only women-owned SMEs for government industries. AI-based technology to be implemented for the upliftment of the MSME sector,” claimed Piyush Goyal for the implementation. He further added, “The Budget aims to provide assured income support to small and marginal farmers under the Pradhan Mantri Kisan Samman Nidhi initiative. Under this initiative, INR 6K per year per farmer will be transferred directly to farmers’ bank accounts in three instalments. Farmers with less than 2 hectares landholding are eligible for the scheme.”