What start-up India and their entrepreneurs are saying about Union Budget 2017

While announcements from the FM during the Union Budget 2017 did concede to the best interests and requirements of startups, it was only partial. Not surprisingly, this budget was mostly focussed on digital economy and the attempt to propel it – leaving out some of the major demands of the startup community.

Here’s what some of India’s leading startup founders have to say about it:

Mayank Bhangadia, CEO and CoFounder, Roposo

“The government’s move to enable startups, incorporated after 31 March 2016, avail of a three-year tax holiday in their first seven years is quite commendable. We also welcome the new relaxations provided in terms of carrying forward the losses. The government’s efforts to digitise India and promote digital payments should go a long way in boosting the country’s economic growth.

However, the 5% corporate tax reduction is not relevant to most startups that have not yet begun generating as much revenue. Government should now start thinking about how to reduce startups’ real cost in the early years. In my opinion, income tax slabs should be made completely flat. Tax rates should not increase with increasing income.”

Sandeep Aggarwal, Founder, ShopClues and Droom

“Profit linked-deductions for start-ups getting reduced to 3 years out of 7 years is a big relief for the startup ecosystem. Until, last year government had given three year tax holiday and MAT (Minimum Alternative Tax) which was going to expire by 2019 and now has been extended to 7 years. However, there are a lot of things I was hoping 2017 Union Budget to touch upon for example policies to ensure that capital is easily accessible to entrepreneurs, repatriation of money coming to India, R&D credit,  no capital gain for any kind of start-up sale or exit and to make foreign listing for any Indian company straightforward.”

Sakshi Vij, Founder & CEO, Mylescars.com

“The Union Budget presented is a welcome change. The governments focus on inclusion and encouragement of the MSME sector along with Startups is visible. The increase in the Profit linked deductions period to 3 out of 7 years is a welcome change for young startups like us. The exemptions proposed for the Indian entities with Foreign placed portfolio investments is also a step in the right direction.”

Vishwavijay Singh, Co-founder, SaleBhai.com

“The hero of the Union Budget 2017 is definitely the rural sector, with finance minister Arun Jaitley allocating Rs 1,87,223 crore for rural-agri development. He spoke of doubling farmer income in five years, keeping agriculture credit at Rs 10 lakh crore, and increasing cultivation area for kharif and rabi crops among a slew of forward-looking measures. Another important feature of the Budget is the Government’s resolve to ramp up infrastructure, which should help in taking forward the government’s Digital India campaign. As an e-commerce player, I see consumption in rural areas going up. With rural areas likely to witness greater digital penetration, the e-commerce sector is surely to benefit.”

Neetin Agrawal, Founder & CEO, DronStudy.com

“In a welcome move to enable student access high-quality education resource, government in Budget 2017-18 has decided to use DTH Channels to provide 310 free online courses available on the Swayam Platform to students. Presently government has tied up mainly with Government Institutions and Bodies to provide such courses. But  government should also device ways to bring private sector expertise and technology into this mission so that affordable quality education could be provided to all.”

Vikram Gupta, Founder and Managing Partner, IvyCap Ventures

“The main positive aspect which I see for startups and SMEs for companies with less that 50 cr of turnover is that tax rate has been reduced from 30 to 25% which should come as a big relief for startups. Most of the startups we invest in have less than 50cr revenues.”

Rajiv Vij, CEO & MD, Carzonrent.com

“The Union Budget presented brings out the progressive outlook of the government for Businesses as well as individuals. The investments proposed in the area of skill developments are a welcome step. The investments in building National Highways is a welcome step for the car rental industry. The impact of the demonetization drive is visible with progressive steps taken for an inclusive and cashless economic future of India.”

Charlie Lee, CEO, True Balance

“The government has announced a game changing budget today. Policies announced introducing internet friendly measures , additional POS terminals, mandating government receipts through digital means and benefits to UPI based payments and other digital payments will give a mega push to digital transactions and encourage cashless economy further in the country.”

Dr. Apoorv Ranjan Sharma, Co-Founder, Venture Catalysts

“Union Budget 2017-2018 is a progressive economy budget. The government has introduced the right policies, from reducing fiscal deficit gap to cleaner GDP growth, whilst promoting digitalization and growth of the rural sector. For the Startup economy, there is a significant relief in deductions within profit-linked available to seven years from the current five years. Furthermore, the deduction in corporate tax is a great boost for the companies with turnover of 50 crores or less. Besides, SMEs with turnover up to Rs 2 crore, will enjoy tax relaxation from 8% to now 6%. The move is going to waive off the financial burden, while propelling small merchants on their path to success.”