With the 2023 budget just around the corner and due to be submitted to Congress on February 1st, a range of entrepreneurs are hoping for steps to boost their respective sectors. After experiencing financial stress and job cuts in 2022, start-ups expect the government to continue the supportive measures already in place for another year to support new-age business.
Also Read: Budget 2023: Date, Time and Where to Watch Union Budget Live Streaming
Ratish Pandey, founder of Ethique Advisory, said: Equity funding has dried up, forcing startups to consider cutting costs and extending runways. Investors have not completely disappeared. They have changed their approach to offering venture debt. Despite this, startups fought a ‘lack of funding’.”
While the numerous aid packages put in place by governments to help post-Covid startups continue, he added, the world is in the aftermath of a pandemic, recession, energy crisis, war or supply chain collapse. In working, the Indian start-up industry is making great strides to create sustainable solutions across different sectors.
With over 60,000 startups registered, India is the world’s largest ecosystem after the US and China.
“Startups continue to innovate and disrupt multiple industries, including space tech, edtech, femtech, healthtech and fintech, creating tremendous opportunities for investors. By doing so, it will be poised to realize its vision of becoming a $5 trillion economy and a global powerhouse by 2024-2025. We look forward to continuing for another year,” said Pandey.
Aditya Malik, Founder of ValueMatrix.ai and Nasscom DeepTech Club Mentor, said: By 2025. Increased demand for startups has prompted governments to introduce more policies to facilitate access to capital, incubator programs, and capacity building. ”
He also added that government-budgeted capital spending stimulates the economy by providing opportunities for small businesses to participate in government projects, which creates jobs for these companies. The Finance Minister is expected to introduce a unique financing vehicle for breakthrough innovations in start-ups in the upcoming Budget 2023.
Nishant Behl, Founder and CEO of Expand My Business, said: However, this will no doubt require greater support from the government through new provisions and policies in the upcoming budget. ”
Special incentives are needed for e-commerce companies to establish warehouses and infrastructure in Tier-2 and Tier-3 designated locations to enable seamless operations. Start-ups in the IT and ITeS sectors will need greater support, so governments will need to get involved in per diem thresholds, safe harbor rules, and advance pricing agreements, thereby making it easier to do business. Behl says he will improve.
He added that for public market capitalization, startups should equalize long-term capital gains taxes on private and public equity investments. It’s a long-standing request, and on top of this, he’s also looking forward to seeing the Minimum Alternative Tax (MAT) for eligible startups drop from 15% to 9%.
KoinX founder Punit Agarwal said: However, 2023 looks promising for Web3, cryptocurrency and blockchain startups. The main focus of the upcoming budget appears to be on maintaining the financial integrity of crypto traders and investors. ”
He added that the government is placing more emphasis on preventing illegal activities related to the VDA, which suggests that the upcoming budget will not sufficiently ease the current crypto tax. It is expected that classification and taxation of VDAs will become clearer in . “The introduction of the digital rupee, in particular, could increase the use cases and deployment of crypto in the Indian financial ecosystem.”
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