The current government has placed immense faith and hope in Indian startups and digital ventures. The announcement of a $1.5 billion start-up fund during ‘Startup India 2016’ is definitely a boost, though we would like to see how these funds are channelized towards us, and would want a clear and quick way to access them, with minimal government or bureaucratic intervention.
A sure way to help early-stage startups pick up growth would be to increase existing tax exemptions – currently a service tax exemption exists for commissions earned up to 10 lakh a year, this exemption should be extended to commissions earned up to 25 lakh.
Advancement in communication technology and penetration of the internet into Tier 2 and Tier 3 cities will bring in the next wave of digital consumers, and possibly, entrepreneurs, so we would be on the lookout for the budget to concentrate on these infrastructural roadblocks.
As the government is pinning its hopes on the new wave of startups and digital companies to boost employment, a good initiative would be to introduce tax incentives for startup employees, to further encourage the Indian youth to join startups.