India’s start-up fundraising winter is an open secret. Despite their considerable global recognition, how Indian startups differ from Western startups is their access to tax credits and subsidies when competing globally. With the Federal Budget 2023 ready to be presented, the start-up community expects the government to re-examine the challenges facing this community going forward and do everything in its power to provide support.
“The IT/ITeS sector in India continues to experience strong growth and innovation. We strongly urge you to take action to streamline long-term capital gains (LTCG) and short-term capital gains (STCG) tax surcharges and increase investment in infrastructure and R&D,” said Executive Vice President, ClearTouch. President Uthaman Bakthikrishnan said.
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Today, international companies enjoy a competitive advantage over domestic start-ups due to their size and stable credit sources, making it more difficult for domestic players to compete with large, established companies. It is important that governments provide similar incentives and support to domestic startups to level the playing field.
In this regard, BhaktiKrishnan said, “In addition to tax cuts and subsidies, in order to accelerate support for domestic start-ups, the government will implement regulations favorable to SMEs to create a more favorable business environment. and foster domestic entrepreneurship and innovation.”
“Another key focus area is increasing access to digital infrastructure resources such as broadband and high-speed internet. These resources enable faster communication, data transfer and access to information. Therefore, it is essential for companies in this sector to operate effectively and efficiently.In order to remain competitive in the global market, India will need to invest in research and development of innovative technologies such as AI and automation. Continued investment is essential: These technologies have the potential to transform various industries and sectors and investing in their development will ensure India remains at the forefront of technological progress. can do.”
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