Budget Reaction Quotes 2022 | Startup Community
Mr. Sohail Mirchandani, Chief Operating Officer & Co-Founder, Ekostay, said, “Young India has become synonymous with the term – Startup. The dream of having one startup per district is almost coming true, but one of the biggest hurdles startups face is being bootstrapped. And so the difficulties that come along, affecting the sustainability of these startups. The extension of ECLGS will only do good to young India in many ways. The ECLGS expansion by Rs 50,000 crores to cover an aggregate of Rs 5 lakh crores to aid MSME’s financial needs will definitely help the hospitality sector, that’s been looking for some relaxation or aid since Covid struck. It, along with the other key points of the Budget 2022, shall definitely boost the spirits of young India and startups.“
Mr. Prateek Toshniwal, Startup Investor and Advisor, IVY Growth Associates, said, “Budget 2022 was Startup Centric and Technology Centric!
A new era has come, and now even the budget is Tech-Driven! For the past two years, the budget was presented on a tablet which indicates that the new era will be tech-focused and digital-driven!
Focus sectors were Agriculture; Affordable Housing; 5G Telecom; Infrastructure; Green & Clean Energy; Technology; Job Creation; Education; Health Care; Defence and Blockchain!
A major push has been towards – PM GatiShakti, Inclusive Development, Productivity Enhancement & Investment, Sunrise Opportunities, Energy Transition, Climate Action, Financing of Investments.
An estimated total budget expenditure for 2022-23 is Rs. 39.45L Crores, while the total receipts other than borrowings are estimated at Rs. 22.84 lakh crore.”
Mr. Gaurav VK Singhvi, Co-Founder, We Founder Circle, said, “Indian startup industry has earned itself acknowledgement globally with funding on an all-time high, and unicorns shining on the stage. Now that the budget has announced the establishment of an Expert Committee for VC/PE funding, it is clear that the government has adopted a progressive inclination towards further boosting the growth of the startup industry. The expert panel will analyse the industry and guide the government to scale up the funding accordingly, form favourable policies, and nurture the segment at the national level. We can expect a healthier credit line for budding entrepreneurs and better penetration in tier 2 and tier 3 cities reaching innovative businesses.“
Mr. Harsh Shah, Co-Founder of Fynd, said, “I am happy that it is not a populist budget, which shows that the government prioritises structural growth. An increase in CapEx spending is also in the right direction.
Tax on virtual goods is indirectly good as it now brings digital currency under regulatory supervision, a very positive push for cryptocurrency and Web 3.0. It would incentivise startups to create more products & services in the blockchain ecosystem.
High GST collection is also a good sign; it gives the govt appropriate resources to boost this long-term plan. The cap on a surcharge on capital gains on any asset is a great thing, especially for startup ESOP holders.”
Mr. Rajesh Ranjan, Founder of Krishify, said, “Union Budget 2022 is a great development. It was very exciting to hear the government taking an interest in digital services, digital records, etc. Still, I am keen to see what steps they will take to bring these initiatives to reality. As the founder of an Agri-Tech startup, I was elated to hear about the digital distribution through the PPP model that we would be very interested in. Great initiatives have been taken to promote the involvement of gadgets and tech such as ‘farm drones’ for crop assessment and spraying of pesticides. Also, digitisation records will bring more transparency to the agriculture sector. Improved and quick banking services will help the farmers a lot to hold their income and gain profit.
The government’s willingness to promote organic and chemical-free farming is a great initiative to boost the sustainable agri-productivity and income of the farmers. the industry has waited a long time for schemes to deliver high-tech services to the rural farmers, which is now over. ₹ 44,000 crores Ken-Betwa river linking project will also be a boon to a section of farmers. The promotion of Agri-Universities is another initiative that I am very excited about. The way young kids are excited about going to IITs, NITs or top medical colleges for their graduation, I hope the coming generation will be excited about going to agri-colleges.
The introduction of the Unified Logistics Interface Platform will enable data exchange amongst all-mode operators resulting in an efficient movement of goods and reduced logistics costs and time; Railways will be seen to be a significant part of this. The game-changer for the agriculture sector can be said to be the ₹ 2.37 lakh crore direct payment of Minimum Support (MSP) value to farmers’ accounts, and the facilitation of funds to startups for agriculture and rural enterprise, relevant for farm produce value chain startups will support FPO by NABARD.”
Mr. Shrikant Shinde, CEO & Founder GoGoA1, said, “We welcome the Budget 2022-23 by Hon Finance Minister Ms.Nirmala Sitharaman. We are happy that a Battery Swapping Policy will be implemented for the EV sector, which will help in reducing the battery component costs in electric vehicles. It will also ease concerns over space crunch for expanding EV infrastructure, make EVs more viable and loosen the lower range anxiety for buyers.
Reaching out to private sector players like GoGoA1 is a good step taken by the government. By producing EV components, motors, and batteries, we are already assisting in developing a sustainable EV ecosystem. We are still hopeful that we will get a GST reduction to 5% from the current 18%, applicable for EV conversion kits in this financial year. It will be helpful to all those people who are looking to convert their existing motorcycles to EVs as per the norms of certain state governments.
We are still expecting subsidies and policies that will benefit the retrofitting industry and consumers in converting their existing vehicles into electric vehicles. We might soon see specific areas in Indian cities turned into no-go zones for Inter-Combustion Engine vehicles. The government should be stepping up initiatives to boost EV infrastructure and EV ecosystem to achieve its broader decarbonisation goals.”
Mr. Abhishek Goenka, Head and CIO, RPSG Capital Ventures, said, “This Union Budget was highly anticipated as one that will give shape to the post-pandemic recovery of the Indian economy. It has outlined some steps that will be helpful in this arena, such as focusing on simplifying foreign investments in clean energy, infrastructure and sustainable businesses and increasing public sector investments. Pradhan Mantri Gati Shakti Yojana has got a lot of attention in the budget, and this is in sync with the plans to make India a manufacturing and business hub of the world. Push towards a stronger digital ecosystem and the extension of the startup tax holiday were much anticipated moves. Also, it is encouraging to hear that an expert committee is to be constituted to evaluate the concerns of Private Equity and Venture Capital investors. However, further clarity on the measures would have been helpful. Overall, this budget offers various positive steps, but we expected more boosters in terms of investor benefits and development of the overall startup ecosystem.”
Mr. Naveen Duggal, CFO, Melorra, said, “Given the huge opportunity in the gems and jewellery sector and India is a major exporter, policies to facilitate export in the Union Budget 2022 are a welcome sign for the industry. For companies like us that thrive on international standards and already have a global brand appeal, there is an opportunity to create a wider international footprint as jewellery exports through online channels get a green light from the government. A 5% reduction in import duties on diamonds and gems is also welcome. However, no reduction in customs duty for gold imports, long-standing industry demand and critical growth aspects for companies like us came in as a dampener. The extension of startup incentives under the Income Tax Act by one more year is a welcome move. However, it may not have a widespread impact on the startup ecosystem. Reduction of surcharge on LTCG on shares of unlisted entities from 37.5% to 15% is a good move. With this, at least there is parity in surcharge on LTCG from listed entities. Overall, the budget has something for the jewellery industry and startups. We hope the government will do much for the startup ecosystem.”
Tapan Barman, Co-Founder and CEO, Mihup, said, “India is now aiming to evolve into a $5 trillion economy, and technology-driven startups are going to play a crucial role in achieving this goal. Towards this end, the government announced paying special attention to technology-enabled development and companies that help digitise and optimise manual processes. AI technologies have been mentioned among the sunrise sectors, and the government has also announced simplifying FDI in various private sector entities. The extension of startup tax exemption by one more year was much needed. However, there is still a need to simplify ease of doing business and allocate greater funding support to startups that haven’t been adequately outlined in the budget. We also hoped for incentive or infrastructural support for research and development of AI-based futuristic technologies and issuing of relevant directives and policy announcements to address the outstanding issues. It would lead to faster growth for the tech-driven Indian startups, and Indian SaaS companies will be able to export products and services at par with the IT industry in the years ahead.”
Karan Shaha, Co-Founder and CEO, Vahak, said, “It is very encouraging seeing the Finance Minister focus on the Gati Shakti masterplan. Infrastructure is one of the critical components of the Indian logistics industry. The logistics and transport sector will see drastic growth by increasing infrastructural investments, allowing everything from intercity to intracity goods transport to become seamless. The mention of focus on productivity enhancement and investment suggests that there will be a greater allocation for technology integration in this sector, which has been one of the main demands of this industry’s stakeholders. Another critical area that has been mentioned is energy transition and climate action.
Along with the plethora of upcoming development opportunities, it indicates a more significant focus ahead on electric mobility in the logistics sector. Overall, the budget’s emphasis seems to be on the right areas. As expected by us prior to the budget reveal, the focus on infrastructure development, energy transition, EVs, and technology-based logistics operations has been in the Union Budget 2022, which is quite encouraging. This emphasis on inclusive development will not only augur well for the logistics sector but the overall growth of the Indian startup economy.”
Ankit Kedia, Founder and Lead Investor, Capital A, said, “The Budget touches upon various vital areas related to ease of doing business, and the investment arena. The 35.4% increase in the public sector investments budget suggests that the government will be investing heavily in infrastructure development as well as the industries that need financial support. Alongside the announcement about investments in energy-storing such as dense charging infrastructure and grid-scale battery infrastructure, it will promote clean energy usage across the board, and that’s one area Capital A has also been focusing on. We are also launching a special cleantech-focused fund to develop Clean Energy and charging infrastructure, and this announcement augurs well in that direction.
The government has extended startup tax holidays and concessional tax for manufacturing startups by a year. While that was on the cards, it doesn’t address the core need of startups to be given a more extended tax holiday of 5 years as required. There hasn’t been any announcement covering all startups registered with DPIIT for the tax holiday either, which was a much-needed measure for companies hit by the pandemic. FDI in the sustainability sector is also announced to be facilitated, and we look forward to following up on action on that account. One of the most encouraging aspects of the budget has been the announcement to set up an AVGC (animation, visual effects, gaming, and comics) promotion task force to plan and build domestic capacity for serving domestic as well as global markets. Overall, this budget seems to be reasonable with some areas of improvement that will hopefully get attention in the coming months.”
Mr. Aditya Sanghi, Co-Founder, Hotelogix, said, “The Indian hotel industry has taken a hit of over ₹1.30 lakh crore in revenue during the fiscal year 2020-21. The hospitality industry generates employment for close to 4.5 crore people in India, so we welcome the decision taken by the government to extend the ECGL service towards the Hospitality industry, but this may not be enough. We are looking forward to seeing some GST relief in the budget for the sector. Being a hospitality startup, we also welcome startup tax incentives until March 31, 2023. Startups are the backbone of a thriving economy, and we are glad that the government is focused on prioritising this sector.”
Jerin Venad, Co-Founder, Cityflo, said, “We appreciate the government’s decision on aiding the Mobility sector in its recovery. As a startup brand, we are also happy with the government’s decision to extend the current incentives being provided to Startups until March 2023. The pandemic has been difficult for new ventures, especially in the mobility sector. As the national economy returns to its pre-pandemic trajectory, these will help further the mission to aid the growth of Startups in India.”
Mr. Abhinav Jain, CEO and Co-Founder, ALMOND Solutions, said, “The Government has shown that they are going all-in on India’s startup dreams, leveraging it as a big economic lever, with tax benefits. We are delighted and thankful that the redemption of taxes for three consecutive years, which were offered for three years, will be extended by one more year. The economic survey has shown that in 2021 14,000+ new startups have been recognised in India, and the trend shows that it’s up 20 times in five years. It was a clear indication for the government that the Indian startup ecosystem needs the push to fly. Talking of flying, the Drone Shakti program signals the government’s growing belief in the power of technology. It also opens up many opportunities for a growing tech startup like us. Our innovation teams will take this as a green signal to enter into the drone space and begin developing solutions.”
Mr. Chirag Taneja, Co-Founder and CEO at GoKwik, said, “Budget 2022 has brought some really interesting updates. We are stepping into the new India, the India of startups. We have grown to a community of over 61400 startups, creating more than six lacs jobs for our people. The government has recognised that India has achieved the product-market fit for startups. From being home to 733 startups five years back to having over 14000 startups in 2021 alone, we are growing massively and multiplying quickly. Make in India is thriving, and our startup ecosystem is a prime example.
Another interesting highlight is that the investment in enhancing transport infrastructure will really help the e-commerce space as logistics continue to be one of the biggest spends for the industry and is comparatively much higher than other nations. Enhancing transportation infrastructure will optimise the shipping process and save cost burdens for the e-commerce industry.
Apart from these, data centres have now been awarded the infrastructural status. It is a very progressive move as development and financing will become smoother. As this evolves, India will soon become the global data centre, and we are incredibly excited to see that happening. Oh, and also, our government is recognising crypto. So yes, all in all, a good day for the Indian citizens.”
Miten Kakaiya, a fitness coach and founder of Miten Says Fitness, said, “A great initiative has been taken during this Union Budget to digitise every possible industry. I am really delighted with the introduction of the ‘National Tele Mental Health Programme’. Health is the top priority, and rolling out of the ‘National Digital Health Ecosystem’ will help access health facilities quickly.
Also, for Startups, exemption from taxes from three years has now been extended for one more year, which is a helpful step for entrepreneurs during such a critical time of the pandemic, as the fitness industry no doubt demanded benefits for gyms and respective startups.”
Mr. Farman Beig, Co-founder & CEO of Wat-a-Burger, said, “The government has been supportive towards the F & B sector and did announce some steps to help the sector bounce back by shifting the GST compliance onto online food delivery partners on behalf of the restaurants. However, some relief in terms of ITC (Input tax credit) would have further catalysed the recovery of the sector, which otherwise is on the bleeding end. Currently, when the industry is struggling to manage the fixed cost with GST, it requires an immediate boost, and cutting down ITC would have worked wonders.”
Mr. Kushang, Co-founder & CEO of SupplyNote, said, “Indeed, the food & beverage industry in India was bleeding, and it required a lifeline to recover. Though the government certainly announced a number of steps for its resurgence, the Budget announcement of extension ECGL service for the sector will play a significant role in empowering the vertical once again and getting it up and running. Additionally, a slight consideration on the investors front on funding the F&B startups could have further accelerated the industry’s recovery. We further expect fundamental policies to revive the vertical in the country.”
Mr. Prasad Rajappan, Founder and MD, ZingHR, said, “The Union Budget recognises the significance of emerging technologies in fostering economic growth. The reorientation of the skilling scheme is a critical step to reap the benefit of India’s demographic dividend. Moreover, measures such as extending incentives to startups for one more year, One Nation, One Registration and a dedicated credit guarantee fund will propel startups and MSMEs in India. Emphasis on digital infrastructure through the DESH stack e-portal, the 5G rollout and completion of Bharat Net will provide a conducive framework for the growth of startups.”
Ms Aashka Goradia Goble, Co-founder, RENEE Cosmetics, said, “The Budget has granted the most popular wish of startups for extension of tax holiday. The Hon’ble FM has extended the startup tax holiday scheme to startups incorporated until March 31, 2023. It was also important as the last two years have been challenging for those who had just stepped into entrepreneurship and are struggling to keep their startup alive. Additionally, the surcharge on long-term capital gains (LTCG) tax has been capped at 15%. It will reduce the burden on startups in terms of ESOPs and other transactions too.”
Mr. Chayan Mukhopadhyay, Co-founder & CEO of Qandle, said, “It was imperative to control the rising hidden pandemic of mental and emotional health issues. Though many companies took measures to ensure the mental well-being of their employees, it was visible in their productivity how people are struggling within themselves. Also, employees usually hesitate in reaching out to their HRs or counsellors for help. The launch of Tele mental health service will be widely accessible, and individuals will not hesitate in reaching out for counselling. It will boost the well-being and productivity of people, which will eventually lead to a healthy nation and economy. This announcement highlights how we are a forward-moving nation.”
PVSLN Murty, Chairman & Managing Director NEDFi and Chairman, NEDFi Ventures, said, “Indian startup industry has got recognition from our Hon’ble Prime Minister recently and announcing the establishment of an Expert Committee for VC/PE funding reinforce that the government has a vision and agenda to give the best facilities for boosting the growth of the startup industry. In addition to that, happy to see that the government saw the potential of the entire North East region and announced the Prime Minister’s Development Initiative for North East (PM-DevINE).
For the growth of any region, growth startups and corporates play a significant role in their disruptive business ideas. We have been mentoring startups in the entire eight Northeastern states – Assam, Meghalaya, Manipur, Mizoram, Nagaland, Tripura, Arunachal Pradesh and Sikkim. Coming more and more startups from the region is likely to create more job opportunities and help improve the employment sector. We have mentored 26 startups from the NorthEast region till now through NEVF who are doing innovative work in D2C, Tech, Automobile, Agri-tech, Tourism, Infrastructure etc. We can expect a healthier credit line for budding entrepreneurs and better penetration in North East regions reaching innovative businesses.”
Mr. Raj Das, Global Co-Founder & India CEO, Hirect, said, “With the presentation of the Union Budget, 2022 made by the Hon’ble Finance Minister, Nirmala Sitharaman, some of the most important aspects have been addressed as to how the country can build a resilient economy, especially in the post-pandemic era. The budget has several aspects: pro-growth and pro-technology, which would definitely boost the hiring and recruitment domain – majorly the startup ecosystem in India.
The recent announcement, such as the reduction of surcharge on unlisted shares from 28.5 to 23 percent, will boost the incorporation of furthermore startups. The tax incentive announcement for startups will not only motivate a robust ecosystem but also will help in the creation of more job opportunities. The PM Gati Shakti initiative and reduction in corporate surcharge from 12% to 7% is positive. Moreover, to boost the digital-first economy, the National Skill Framework will definitely play a vital role in the upskilling and reskilling of the workforce.
Overall, this looks to be a budget focused on the growth of empowering startups, small, and medium-sized businesses along with overall economic growth.”