The budget brings new promises for entrepreneurs and startups
In this post, I will be sharing my views on the first budget of Modi 2.0 govt. As expected we had a lot of expectations form the govt as they had initiated a lot of new opportunities in the previous term. The StartupIndia platform is indeed a very good platform. Let’s see how this unfolds.
Contents
- What’s so special?
- Silicon Valley and India
- Highlights
- Is it enough?
- Conclusion
What’s so special?
Well, the first reason is because of Hon’ble Nirmala Sitharaman our Finance Minister. She is the first full-time woman finance minister of India. Well, earlier last year she served as Defence Minister also. So kudos to mam. We have a lot to learn from her.
Well, second because it is the first budget of the Modi 2.0 govt. A lot of things are promised in the elections by every political party. So it was important to see what the govt brings in the second iteration after getting another direct majority.
It seems to me that it was worth the hype. Still, a long way to go.
It felt very good to see govt talking about the latest technology trends like e-vehicle, machine learning, artificial intelligence, etc in the budget.
Silicon Valley and India
Recently we have seen a lot of support from the govt in terms of the initiatives to support entrepreneurs, startups across the country. I think the main difference between Silicon Valley and India (yeah I know I am comparing a State/City with a country) is of mindset.
The main cause of this is our upbringing. We live and grow in a society where we see everyone doing studies, working hard to get into IIT, IIM, AIIMS, etc. And many of us are blindly following this. We are into a chase game where there is no end. First to get a good college, then good job, then promotion, then a bigger home, then a bigger car, and this list just goes on.
We fear to fail. And yes this is one of the most interesting things that, they say when you fail in the west; they encourage you to work harder. But here we fear what others will say if we lose. They will tease us like, “Ye dekho chale the Bill Gates banane”.
So I think it is more of a mindset that matters too. And, I think that govt is doing a lot of things to change that mindset. By providing mentorship, guidance, see grants, etc. Now let's talk about something for which you opened this post.
Highlights from the Budget
No income tax for income less than 5 lakh per year
Who likes to pay more tax. And I think it is the biggest savory for people earning less income.
Relief from scrutiny for startups from the Income Tax Department
As per this announcement, funds raised by startups will not require any kind of scrutiny from the Income Tax Department.
Focus on Big Data, Artifical Intelligence, Robotics, and E-Vehicles
It was very pleasing to see govt talking about these things i.e. Big Data, Artificial Intelligence, Robotics, Drones, E-Vehicles, etc. Specially govt will support to create such infrastructure to create e-vehicles and also in creating such eco-system as charging stations. Recently there were some guidelines by Govt of CG regarding the drones. They have also allotted a dedicated land to test drones.
Pradhanmantri Grameen Digital Saksharata Abhiyan
Govt is connecting every panchayat with the internet. And there are no limitations on what you can make and deliver over the internet. So it is definitely the best chance to come forward and fill the gaps. As these few villages or Panchayats are still not connected with the internet with Amazon, Flipkart, etc.
A new DD channel dedicated to Startups
Yeah, you heard it right, govt is launching a new channel under Doordarshan bouquet. And the most important thing is that startups will decide those contents and run it. So another opportunity :P.
KYC norms for FPIs to make it more Investor Friendly
Finance Minister Nirmala Sitharaman in her maiden Budget 2019 budget speech said that the Existing Know Your Customer (KYC) norms for Foreign Portfolio Investors will be rationalized and simplified to make it more investor-friendly. She said that the investments made by the foreign institutional investors (FIIs) and foreign portfolio investors (FPI) in securities issued by infrastructure debt funds and NBFCs “to be transferred/sold to domestic investors with specified lock-in periods”.
Standup India scheme will continue until 2025
Stand-Up India Scheme Facilitates bank loans between 10 lakh and 1 Crore to at least one Scheduled Caste (SC) or Scheduled Tribe (ST) borrower and at least one woman borrower per bank branch for setting up a greenfield enterprise. This enterprise may be in manufacturing, services or the trading sector. In the case of non-individual enterprises, at least 51% of the shareholding and controlling stake should be held by either an SC/ST or woman entrepreneur.
Further Readings
80 Livelihood Incubators, 20 tech incubators to help create 75,000 skilled entrepreneurs in agriculture and rural industry
While presenting the Union Budget 2019–20 in the Parliament, said 80 livelihood business incubators and 20 technology business incubators will be set up in 2019–20 under ASPIRE — A Scheme for Promotion of Innovation, Rural Industries, and Entrepreneurship — towards achieving the employment target.
Is it enough?
Well, I have heard in many startups communities that every year it is said like this only but not implemented actually. So well it will be very important to see how far does this go? And if it is really implemented as expected then yeah believe me. It will boost any entrepreneur/startup for sure.
Conclusion
I think it is just the start. It looks impressive. Let’s see what time brings in. I was impressed but on talking with my fellow mates, realized that they have a complaint regarding the implementations of these things. Like various promises have been made in the past but the actual implementation is not as much hot as the announcements. Still too early to judge at least for these announcements.
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