InvestorQ : What are the budget2022 expectations of the start-up ecosystem?
Anjali Desai made post

What are the budget2022 expectations of the start-up ecosystem?

1 year ago
India's start-up ecosystem has raked up investment to the tune of nearly $36 billion in privately held companies in 2021, as demand for digitisation grew manifold amid the Covid-19 pandemic. India has produced 42 unicorns in a single calendar which, in turn, drive job creation, spur entrepreneurship, and revitalize the digital ecosystem. Despite putting up such a grand show in 2021, the Indian start-up ecosystem is facing challenges like lack of a compelling revenue base and the need to accelerate its digital transformation with technology and platforms.

Some start-ups are looking for rationalizing of taxes in consumer durables items besides promoting R&D and providing incentives for the local manufacturers. With Covid-19 affecting the supply and demand both, the industry is seeking support from the government. Besides this, start-ups are also pushing for tax exemptions in foreign direct investments and a high focus on start-up infrastructure development.

On the other hand, the fintech industry expects the government to focus on expanding digital infrastructure, i.e., payments touchpoints and 5G Internet connectivity in remote areas. This will help facilitate speedy transactions and augment the real-time payments system.

New-age companies also want the government to look at assisting start-ups through policies and support mechanisms towards domestic capital participation, favourable investment climate in Tier 2 and Tier 3 cities, incentives to set up incubators in every state, tax exemptions in foreign direct investments, and a high focus on startup infrastructure development.