The food-tech start-ups are welcoming the budget as the Government has made some important changes for the start-up industry like extending tax holiday for another fiscal year and reducing margin money requirement from 25 percent to 15 percent.
Here is what the industry stalwarts have to say:-
“The industry was in apprehensions with their future and delayed plans. However, getting clarity from the budget, we will be able to revisit our plans and execute them. With the boost for the digital mode of payment, we are looking at a much faster adoption of digital platforms and expand our business to more cities. The budget also allocates a good amount to promote local animal husbandry business. This should help with the up gradation of quality of produce in the country. We are really excited to bring better quality products to market. Though the supply chain is working smoothly, however, as an industry, we were waiting for the simplification of policies to further streamline the supply network. Considering the challenges from last year, we are optimistic about our plans post the budget announcement,” says Siddhant Wangdi, Founder of Meatigo.com.
The Government has also announced initiatives for One-Person Companies (OPCs).
"Great to see the spirit of entrepreneurship receiving its due attention through incentives provided for One-Person Companies (OPCs). This will go a long way in fostering a culture of innovation. Start-ups, especially the ones who had to face the brunt of the pandemic can use the tax holiday and capital tax exemption provisions. However, this was one of those steps that was expected. Heartened to see development proposal for five major fishing hubs, including Chennai, Kochi and Paradip, as sustainable ecosystems for economic activity. Like I said in the past, the fisheries segment earns the country a huge amount of FOREX- a focus on this sector will bear good returns, especially for the fishermen & farmers who are hit badly by the pandemic," Vivek Gupta, Co-Founder, Licious states.
“The government plans to allow incorporation of one-person companies with no restriction on the paid-up capital and turnover and Non-resident Indians will also be allowed to incorporate one-person companies in India. This is a positive step for single founders who are able to start a company and attract investments,” Bala Sarda, Founder & CEO, VAHDAM India adds.
Resonating the same thoughts, Shan Kadavil, CEO at FreshToHome says, "The Union Budget 2021-22 has brought in the much-needed good news for start-ups. The proposal to extend tax holiday for start-ups for one more year till March, 2022 will be extremely helpful for start-ups in these difficult times. Additionally, the extension of capital gains exemption for investment in start-ups by one more year will also incentivise investment in start-ups and help them bring in funds into these companies. Also, one-person company and relaxing the number of days for NRIs will help start up creation and help in ease of doing business."
The government has proposed an extension of the eligibility for claiming tax holiday which will incentivise startups in the country. The proposal to extend capital gains exemption for investment in startups till March 31, 2022 will attract more investments and funding for startups.
“This should be a good boost for them especially after COVID, since they were massively hit. This will give them a leg up in the road to recovery. We still hope the government reduces long term capital gains tax on private equity, soon. As a tea brand, we are happy to know that Rs 1,000 crore has been announced for tea workers of Assam and West Bengal. The details have not yet been shared but this is a positive step for the COVID impacted tea industry. Last year was a really difficult year for them and this is a timely intervention to provide much needed relief to the tea workers and will go a long way in easing the pain and hardships,” says Sarda.
"The Budget 2021 has really pushed for a stronger and improved Aatmanirbhar Bharat. The government's focus on increasing the purchasing power of the farmers will encourage more farmers to adopt organic farming. As Organic farming products generate more outflow as compared to traditional farming methods. We at Planet Organic believe that Organic farming is the future of agriculture.The government's proposal for allocation of funds for MSME sectors, reduction of marginal money requirement and extension of tax holiday for start-ups is a great initiative and will be helpful for all start-ups," adds Praveen Kumar Gupta, Co-founder, Planet Organic.
"At a time when economies across the globe are striving to recover from the unprecedented challenges posed by the Covid-19 pandemic, India’s Union Budget 2021 offers a ray of hope. The extended tax holiday and capital tax exemption will definitely help home-grown start-ups find their footing in these tough times, while boosting the start-up ecosystem.
As India’s largest hyperlocal and omnichannel meat brand, we are particularly excited about the FM’s announcement to develop five major fishing hubs in Chennai, Kochi and Paradip. This will not only help create more employment opportunities, but also encourage more investment in the sector. In addition to this, the enhancement of agricultural targets will further ensure increased credit flow to animal husbandry, dairy and fisheries sectors.
In fact, the Government's continued commitment to doubling farmers' income by 2022 can be achieved through strategic investment and diversification of Animal Husbandry and Aquaculture.In order to thrive in 2021, India needs to harness the power of innovation and nurture the entrepreneurial ecosystem. The budget, overall, seems to have focused on key priority areas to ensure India's recovery is on track and faster," adds Narendra Pasuparthy, CEO & Founder, Nandu's resonating the same thoughts.
"I’m also glad that startups have been given special incentives like the extended tax holiday and capital tax exemption for another year. This will provide significant relief for startups in their early stages and fasten the growth of the ecosystem. In fact, the proposal to allow forming One Person Company (OPC) will be a huge incentive for people to start businesses, thus propelling innovation and entrepreneurship in the country. However, given the current scenario, where the focus is on health, I was hoping to see some announcement around the organic food segment in India," states PC Musthafa, Co-Founder and CEO, iD Fresh Food.