Pre-budget expectations quote from ANSR, Payworld, Easydesq, Toprankers, Wadhwani Foundation, and Eupheus Learning
- Pre-Budget Expectations: Mr. Vikram Ahuja – Managing Director, ANSR and Co-founder & CEO, Talent500
“India is home to over 1500 Global Capability Centers (GCCs), earning itself the title of the “GCC capital of the world.” One of the key reasons why MNCs set up their GCCs in India is the robust start-up ecosystem the country offers. As innovation has emerged as the primary focus area in GCC strategy, start-up collaboration gives GCCs access to newer technologies that can help further the innovation agenda of the enterprise. With GCC revenue expected to scale up to $60-$85 billion by 2026, it is important for the government to take prudent steps to help start-ups, thus creating a more fertile soil for GCCs.
In the present Budget, it is imperative that the government holistically assess the needs of the start-up community and prioritize the development of an ecosystem that fosters growth for the community. As the funding winter for the start-ups is said to continue for another 12 to 18 months, we need a more favorable capital gain tax system that encourages easy access to capital. The government should also consider tax exemptions in FDI and maintain a sharp focus on start-up infrastructure development.”
- Pre-Budget Expectations: Mr. Amit Tyagi, CEO, Payworld:
“India is targeting to become a $5 Trillion economy by 2025. This will be propelled by the growth of SMEs & MSMEs. And this growth will come on the back of the increasing digitization of our economy and expanding the reach of financial services to the masses. We will have to work on bridging the financial divide between India and Bharat. While we have invested in large digital infrastructure projects like UPI, Aadhaar (which enables running AePS among others), RuPay network, etc. It is time to work on expanding last-mile connectivity. This can be achieved by providing incentives for the acceptance of infrastructure in SURU (Semi-Urban and Rural) areas. Incentives can also be provided through relief on GST & TDS for this segment. While banks play a critical role in providing financial services, they are limited in their reach owing to the inherent cost structures amid other concerns. Bharat-focused fintech players like Payworld provide doorstep banking while providing employment opportunities thereby aiding the Digital India mission. Expanding inclusion initiatives to fintechs like Payworld will help deliver the impact of these initiatives to intended beneficiaries faster and more conveniently. While the cashless economy is flourishing in Urban areas, we need to ensure that the gains are equally seen in Rural and Semi Urban areas as well)”
As the honorable Prime Minister declared from the ramparts of the Red Fort – our Amrit Kaal has begun and we have to work relentlessly until we achieve our mission of Viksit Bharat. For this, we need the double engine of digitization and empowerment of MSMEs to chug along.
- Pre-Budget Expectations: Mr. Arjun Gulati, Co-Founder Easydesq
The demand for co-working office spaces has seen tremendous growth, especially in the year 2022, and the post-lockdown scenario is bringing in a wave of new opportunities for co-working players.
Medium-to-long-term fundamentals remain sound as companies seek out alternative options to reduce costs and capital expenditure. As organisations are already back in the office, redesigning and restructuring existing office spaces is posing yet another challenge. This is where co-working spaces come into the picture. These shared spaces can respond to design changes required post-Covid quicker and more efficiently than traditional office spaces. However, to drive the growth of this segment, as a PropTech founder I have certain expectations from the upcoming union budget that are mentioned below:
Recognition of the co-working segment under a special scheme: The modern workplace itself has transformed over the years and the concept of co-working is one such example. I feel that government should recognize the industry under special programs like REITs and provide some tax benefits to promote the growth of this sector. The second important thing is the TDS rate that is applicable to the co-working sector. Presently, the TDS rate for the co-working segment is 10% because we provide renting of both movables and immovables. As the shared space industry grows, a lower TDS rate will give this sector a major boost helping companies to provide real estate solutions to clients at economical rates, which will further help in a better flow of working capital. Another important aspect that should be given importance is the financial support to the start-ups as it will help more and more people to pursue their entrepreneurial journey. It will also give a boost to the co-working business as several entrepreneurs who opt for these shared spaces are early and mid- start-ups. I also feel the government should reduce the present rate of registration and stamp duty to register documents. This will give a fillip to both start-ups as well as co-working spaces.
There is also a need for a reduction in the GST rate for start-ups, as it will make a significant impact on their finances. Currently, co-working spaces charge a GST of 18% to all clients, which is huge for new business owners. Finally, I think, institutional capital is crucial to co-working spaces that are dependent on funds for multiple factors. The government should allow banks to provide loans to co-working firms against the cash flow of co-working players along with providing investment benefits to investors of these co-working spaces.
- Pre-Budget Expectations: Mr. Gaurav Goel, Co-Founder, and Chief Executive Officer, of Toprankers
“The edtech segment foresees the upcoming Union Budget 2023 as remote and hybrid learning emerges in the Indian education landscape. The industry also oversees significant announcements from this budget to drive investment in this space along with favorable regulatory measures to build a conducive environment for digital learning.”
“Toprankers believes that the government should envisage such a framework that promotes the collaboration of startups with government agencies to build capacity, share knowledge and ensure the nation’s holistic development.”
- Pre-Budget Expectations: Mr. Vipul Verma, Executive Vice President, Wadhwani Advantage at Wadhwani Foundation,
“With multiple government schemes assisting in the growth of the MSME ecosystem, there is an increasing demand for various financial and non-financial services that will help MSMEs in their growth journey. Incentivizing these service providers and improving reach to the MSME segment will significantly increase the supply. This will help MSMEs build systems, talent, capacity, infrastructure, access to capital, and other ingredients to meet the growing demand.”
- Pre-Budget Expectations: Mr. Sarvesh Shrivastava, MD, and Co-founder, Eupheus Learning:
“The National Education Policy 2020 aims to bring a digital transformation in imparting Pre-Kindergarten to 12 education which is laudable and much needed. However, while textbooks are tax-free the same policy is not applicable to digital initiatives by the schools and is taxed at 18%. The new budget should correct this anomaly to give a fillip in accomplishing the vision of NEP-2020”