With substantial focus on start-up and digital India, there still exist obstacles like costs, procedural complexities and delays at large.
Start-up India action plan has showcased some signs of encouragement for the start-up ecosystem. The expectations from this year’s budget are high and as Union Finance Minister Arun Jaitley prepares to present the annual budget on 29 February, execution, say start-ups, continue to remain a challenge for the government. It is essential to rightly comprehend the Digital India vision by the government and contribute towards achieving the same in line with the Budget.
Internet penetration and expanding digital payment network in rural areas
Sanjay Krishna Goel, Founder and MD, ACL Mobile says, “To empower the digital savvy mission for the Tier 2 and Tier 3 cities and even beyond cities, start-ups look forward to policies and budget allocations including subsidies for channelising the infrastructural development and internet penetration.”
Pramod Saxena, Chairman and MD, Oxigen Services says, “With the upcoming budget announcement for the year, we feel that the FM should consider incentives for digital payments like direct subsidy credits similar to carbon credits since 95 per cent of payments in the country are still in cash. The FM should also focus more on according “infrastructure status” to digital payments network in rural areas for financial inclusion and payments. We expect that FM should also consider allocation of budget for promotion of financial literacy in rural areas. PPI’s should be allowed to offer cash out services to expand the reach of financial inclusion.”
Abhesh Verma, COO, nexGTV says that the budget should address critical infrastructural bottlenecks. “The $1.5 billion start-up fund announced in ‘Startup India 2016’ reflects the Government’s faith in digital and start-up ventures. It’ll be interesting to see the budget address critical infrastructural bottlenecks to improve the fund’s channelisation and accessibility in order to foster increased Internet penetration in Tier 2 cities and beyond, which will bring forth the next wave of digital entrepreneurs as well as consumers and help meet the Government’s vision for start-up Indian and Digital India,” he added.
Manavjeet Singh, Founder & CEO, Rubique also believes that for a start-up ease of starting a business is crucial. “We need a supportive environment on compliance front to reduce the paperwork so the founder can execute his idea faster. Also tax holidays/exemption on service tax in initial years would help start-ups to deploy their funds effectively to make their foundation stronger. Also there should be smooth process of deployment of funds government has reserved for start-up. This would definitely encourage the promising entrepreneur community in India,” added Singh.