Hitesh Jirawla, Founder CEO, Cubictree, ( Mumbai-based India’s largest legal tech startup)
The FM presented a digital Budget, 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. The 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 the documentation and other legal processes. We believe the govt has taken a lead in addressing the problems that currently ail 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, (a cybersecurity startup based in Mumbai)
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.
Pavan Adipuram, Co-founder CEO, ChitMonks (Hyderabad-based BlockChain startup working with govt and Chit Fund companies to make Chit Fund operations easy to regulate and more transparent for chit subscribers)
The Budget this year was riding high on expectations from taxpayers and businesses. The FM has tried her best to deliver on a majority of parameters. It is heartening that the much talked about COVID cess wasn’t introduced, neither any dramatic increase in taxation for the businesses. For a digital-first company like ours, the proposal of Rs 1500 crore to incentivize digital payments will accelerate the financial technologies sector growth. In investment instruments like Chit Funds, Mutual Funds, online payments, more companies are expected to move to 100% digital payments mode which will ensure further transparency and confidence in individuals and it will address the problem of any scams running that take advantage of innocent individuals. However, the devil would be in the details. We look forward to the details of this proposed scheme as it will tell us how the incentives will work for the companies and individuals.
Kumar Ritesh, Founder CEO, CYFIRMA, (a Cyber intelligence and threat discovery startup.)
This is one of the most business-friendly Union Budgets we have seen in a while, and this is rightly so given the urgent need for a strong economic recovery. The initiatives to ease the setting up of new companies bode well for the technology sector. This will promote an even greater entrepreneurial culture and put India squarely on the global map of technology innovation. Given India’s young, dynamic and tech-savvy workforce, we should expect more companies to choose India as a base to leverage on our vast talent. India’s fast-growing middle-class population should also be a magnet for businesses seeking to tap on the underserved market here. Further, the Finance Minister’s announcement that companies will receive RS1500 crore to encourage their adoption of digital payments will go a long way to promote Fintech innovation, and more importantly, allow millions of unbanked Indians to participate in the financial system. With digital payments becoming mainstream, the government should also start looking at uplifting cybersecurity awareness and education among businesses as well as consumers. This way, the twin engines of growth – innovation, and digitalization – can be sustainable in the long run.
Anukumar Ramesh, Co-founder CEO, LegallyOne (a Mumbai-based legal tech startup)
A bad bank set up is a really bad idea. The FM in consultation with other regulatory body didn’t address the source of the problem which loans turning into NPAs. Even if banks transfer NPAs to the Bad Bank but they will continue lending. There is no end-to-end governance model in place to prevent such incidents. We feel the idea is right now half baked and the framework is incomplete. Picking up a problem area without reaching the source won’t be beneficial for the banks in the long run.
Bhaskar Majumdar, Managing Partner, Unicorn India Ventures
The Union Budget 2021 delivered on many parameters like healthcare, infrastructure, education, banking reforms but the distant cousin — startups — were more or less left out of the key announcements. The tax holiday and LTCG exemption are definitive positive initiatives but their impact remains limited to DPIIT recognized startups (tax break exemption). The funding in the startup sectors currently comes from foreign funds, so while LTCG will give a boost to domestic money finding its way into the sector, the numbers still won’t match up to the scale where impact can be made. However, we can’t ignore the fact that the govt has rolled out many positive initiatives outside the Budget like the Rs 1,000 crore seed fund announced recently, and even setting up OPC will give a boost to new startups getting launched. It will also give them credibility in raising seed or angel money.
The simplification of zero return GST and filled tax returns is overall good for the small entrepreneur. The digitization of the Census is in the right direction of overall digitising all government processes as this would enable census within months and not years as it takes now. Overall, it a good budget but not much for the startup community.
Ashvin Patil, Director, and Founder, Biofuels Junction Pvt Ltd
The allocation to the clean energy sector is a big support to the solar energy sector, which shows that the government clearly intends to promote the clean energy sector. The rural development infra fund where the allocation is up by 34% supports the biofuel industry which typically originates from agriculture waste and also provides good incentives to the cotton farmers. There is also an ease of doing business where tax audit has been raised to Rs 10 crores which will definitely support the small entrepreneurs where the compliance will be much lower. Lastly, the Agri infra development sales, which is levied on petroleum, diesel, and coal making them more expensive than biofuels thus making it beneficial for the sector. I think overall it’s a good budget and we look forward to its implementation.
