New Delhi 02 Feb 2023: Union Budget is the most awaited announcement for every citizen, from common man to business owners everyone has expected something that they will get benefits, or subsidy. Even for startups budget is very important. Soon after the announcement of budget people from various sectors shared their insights. We have collected few insights from the investors.
- Prashant Narang, Co-founder, Agility Venture Partners
The budget is out and it seems like a fair budget… With the highest capital expenditure allocated ever… The government’s focus on the infrastructure development of the country is clear… Apart from that the focus is on agritech Robotech AI and the EV sector and skill development to promote innovation in the country… On the tax benefit side, the benefits that are extended in the new tax regime… Which has been made the default tax regime so whether it is the enhanced tax of 7 lakhs or the new tax labs they have been defined under the new tax regime… Overall a good budget wherein a lot of small benefits have been extended to various sectors.
PFA- Video from Prashant Narang
- Umesh Uttamchandani, Co-founder & CGO, DevX
Our Finance Minister has stressed on an ‘Atmanirbhar Bharat’ and that was evident from the slew of measures taken for the startup ecosystem in the budget. The focus on ease of doing business coupled with tax benefits has been the talking point.
By extending the benefit of carry-forward of losses from 7 Years to 10 Years, it gives a much-needed breather owing to the long gestation period a startup normally has till it turns profitable and self-sustainable. The focal point in the budget has been the push made in the Agritech, Bio-Science and Artificial Intelligence Sectors along with tax benefits in the gaming industry.
The measures would certainly give a much-needed boost when the ecosystem is reeling under funding scarcity and may see a positive trajectory over the course of next few quarters.
- Aditya Arora, CEO Faad Network
I think this is a very progressive budget for startups government has laid good imputes on a few sectors be it agritech be it investments for infra… Giving huge capital outlay budget from the total sanction budget to this specific themes and also settings agri incubators and accelerators… I think this will pave away for the next live stock and agri startup to come and flourish in India… And secondly, also the taxation relief that has been given to startups that have been incorporated on or before April 1st 2024. As per this the investors can carry forward the losses, not for a period of 7 years or 10 years … I think these all inputs will help the startup economy to boost and India is already the 3rd largest ecosystem and I think one day we will be number one.
- Yagnesh Sanghrajka, Co-Founder and CFO, 100X.VC
This year’s budget comes with several key reforms for the Indian economy. The startups definitely received a light touch with extension of carry forward losses, Agri-tech accelerator fund, IT benefits for new startups, the new National Data Governance Policy and an overall infrastructure sector led and capital outlay of Rs 10 lac crores will help select startups building for India. However, some key issues that didnt get attention are No changes to GST Rates for registered startups, ESOP taxation, tax parity in base rates for unlisted shares, and tax benefits for angel investors taking up high-risk investing, might adversly affect the startups growth that our country needs in order to become world’s innovation hub, this may prolong the funding winter.
- Karan Mittal, Partner, Ev2 Ventures
The 2023 Budget is progressive, future looking, Pro Startups & Pro Electric Mobility — Custom duty exemption on import of capital goods and machinery required for Li-ion cell manufacturing will assist in increasing captive capabilities; This along with the revamping and extension of the credit guarantee scheme for MSMEs is expected to boost the much needed debt financing for the EV ecosystem and help increase adoption.
- Devesh Rakhecha, Angel Investor, startup enthusiast.
India has a rapidly growing startup ecosystem, with a large number of young entrepreneurs and innovative ideas. The government’s support for startups in the form of investments, grants, tax benefits, and favorable regulations can play a crucial role in helping these businesses grow and succeed. The Indian Union Budget 2023 is a step in the right direction towards supporting startups and fostering a vibrant entrepreneurial ecosystem in India. I was hoping for specific tax benefits related to capital gains on unlisted investments in the Indian Union Budget 2023. The absence of these measures could be seen as a missed opportunity to further promote investments in startups and encourage more people to invest in early-stage businesses. However, it is important to note that the budget did contain other measures aimed at promoting entrepreneurship and startups, such as allocations for incubators and accelerators, affordable credit schemes, innovation grants, and a venture capital fund of funds. These measures, along with a conducive regulatory framework, can still help to create a supportive ecosystem for startups and drive investment in the sector.
- Priyank Jain, Co-founder, SoupX India who recently got fund from Shark Tank India Season 2
With India becoming a global startup ecosystem behemoth, the key measures for further strengthening this ecosystem are well appreciated by the founder’s community. Measures such as tax incentives and benefits, and allocation to startup india seed fund scheme among others will definitely provide a thrust to emerging startups!, We were expecting the budget would have made ESOPs more attractive by easing its taxation, however, it found no mention this year!
- Sakshi Vij, Founder, Myles Cars – EV & Auto
The Budget presented is positive and growth focussed. The focus on Green Energy adoption through the Green Credit programme will be a welcome move. If this program is able to assist EV financing, we see this as being a significant boost to accessibility in Electric vehicles for a variety of mobility solutions. The increase in Capex budgets by 33% along with Rs. 35000 crore proposal for Energy transition is both welcome steps for the mobility space enabling a greater scope for innovation and growth.
