Union Budget 2022: Reactions from Startup Sector

Union Budget 2022: Reactions from Startup Sector

The finance minister Ms. Nirmala Sitharaman has finally presented the Union Budget in parliament for FY 2022-23. The budget is expected to lay the foundation of modern and digitally empowered India. FM emphasized improving the digital infrastructure as technology is rapidly expanding its footprints. The government touched almost every sector be it startup, education, health, MSME, telecom or manufacturing. The IT industry plays a crucial role in the economy hence the Finance Minister announced several measures to boost domestic manufacturing and uplift the IT sector. Among all, the Indian startup ecosystem has flourished immensely and the government is keeping up the momentum by announcing favorable schemes for startups. The IT leaders have shared their views on the announcements for startup sector. Read the excerpts below:

“This Budget Proposal Enables India To Make Digital Progress Across Sectors”

“This Budget proposal enables India to make digital progress across sectors and contributes to creating a digital, tech-enabled ecosystem. With the launch of the Digital DESL Stack portal the government will empower the Indian youth to attain more relevant jobs, entrepreneurial opportunities and help them to upskill through online training. I believe start-ups will contribute greatly to the Government’s mission of driving job creation across the skill spectrum. Also, the introduction of Digital currency through use of blockchain technology in 2023, will make money management easier than ever.” - Nilesh Patel, CEO and Founder, Leadsquared 

“This 2022 Budget Is Focused On Vulnerable Sections To Increase Adoption Of Technology”

“This 2022 Budget is a real booster budget, As it is focused on vulnerable sections to increase adoption of technology and digital payments in Bharat. Firstly due to the announcement of 75 Digital Banking Units (DBUs) in 75 districts.. a unique initiative and digitization of 1.5 Lakh post offices to provide core banking to the nook and corner of Bharat. Secondly, there is mention of a focus to promote the use of payment platforms that are "economical and user friendly."

“It seems government has heard my prayers to bring some reforms for feature phone and voice based payments as there are 97.3 Crore mobile subscribers who still not on UPI, while top UPI apps like GooglePay, PhonePe, PayTM, AmazonPay, Govt's own BHIM as well as app of other 55 Banks have only been able to enroll 20 Crore users on UPI and most of these users are from the Lower Middle-Income segment non-tech savvy, from villages and elderly who struggle to make cost-free zero MDR money transfers, while we zip through addictive UPI based apps.. that ease of UPI has led to big increase in UPI Payments, but UPI user-base has kind of hit the glass ceiling at 20 Crore / 200 Million. This renewed focus in Budget to the marginal sections, will get channeled in the right direction and rapidly increase the users on UPI and thus bolster the growth of our economy in the coming year, Real Aacche Din for Bharat seems to have arrived at the door.” - Mitesh Thakker, CEO & Founder, MissCallPay

“The Government’s Focus On Technology Came Through Very Clearly In The Union Budget” 

“The government’s focus on technology came through very clearly in the Union Budget and it is heartening to note that sectors right from transport to education and banking were viewed with a digital-first approach. In particular, the proposal to connect remote towns, cities and border villages in India through programs like the PM Gati Shakti and the Vibrant Village Program. With a large number of villages in India still lacking internet connectivity, focus on building the digital infrastructure can play a crucial role to empower citizens in the underserved and unserved areas. The application of innovative solutions and these technologies will also go a long way in providing learning and employment opportunities for millions of Indians.” - Rohit Paranjpe, CEO & Co-Founder, SugarBox Networks

“Budget Sets The Tone For Taking India One Step Forward As The Startup Capital Of The World” 

“Budget sets the tone for taking India one step forward as the Startup Capital of the World. There is an overarching theme of boosting digitization & entrepreneurship via tax incentives for another year and by earmarked capital expenditure & promoting startups in sector such as defense, agriculture, drone, digital currency, data centers, animation etc. There is no doubt it will lead to an accelerated trend of global investments and growth for the Indian start ups.”- Vikrant Khanna, Co-Founder / CEO, Mogi IO

“This Budget Is Keeping Up With The Need Of The Times” 

I welcome this budget, which is: 

  • Keeping up with the need of the times (Data centers now counted as infrastructure, Crypto holding accepted as legal, e passports, National Digital Health system),
  • Leverages India's strength (Push to agro startups, using Drones to solve India specific problems)
  • Progressive (Job creation, Economic growth at more than 9%)
  • Innovative (PM Gati shakti, EV battery swapping policy)

- Rajat Singhania, Founder, HyLyt by SocioRAC 

“The Introduction Of Drone Shakti Is A Welcome Move And Will Ensure Business Momentum”

“The union budget and the initiatives announced by the honourable Finance Minister continue to provide impetus to the growth of the drone industry in India. The introduction of drone shakti is a welcome move and will ensure business momentum and drive faster adoption of UAVs in the country. It is encouraging to see the government promoting Digital India and digitisation of various sectors through the integration of UAVs through varied applications and drones as a service. India with its vast natural resources spanning from agriculture, minerals, and great infrastructure is finally getting the much-required momentum to become digital. The announcement to promote the use of ‘Kisan drones' in the agricultural sector as part of the Budget for 2022-23 will enable the drone industry to collaborate with our farmers to improve operational efficiency and maximize profitability. This is a welcoming move and will make India’s agricultural sector future ready.”

“Today, both enterprises and the government are realising the economic and social opportunities that India’s widespread and dispersed geospatial assets can provide to the nation. Becoming Digital First and creating a digital repository of India, will enable faster growth of our economy and the much-needed transparency thereby improved governance. UAVs offer an ideal compromise between scalability, economic feasibility, immunity to error, and productivity. The faster adoption of UAVs is therefore critical to realise the potential of these geospatial assets.” - Mughilan Thiru Ramasamy, CEO & Co-founder, Skylark Drones

"The Government Has Insisted On The Development Of Digital Infrastructure” 

"The government has insisted on the development of digital infrastructure. Especially, in the education sector, the government has realised the need for a nationwide eVidya programme and digital university. This also opens prospects for new age tech startups to collaborate and contribute in establishing a robust digital infrastructure along with the government. New businesses have been leveraging technologies like AI, machine learning and data analytics, and have presented successful implications which might come handy in enabling the national education projects." - Sarvagya Mishra, Co-founder & Director, SuperBot (PinnacleWorks)

“DigitalRupee Is A Historical Decision By The Visionary GoI” 

“The budget paves a way for digital savvy India, impacting betterment and quality of life and ease of doing business. The Budget 2022 brings super positive news for the Web3.0 Startup ecosystem in India and brings a long term direction. Blockchain Innovations companies have exposure to Cryptocurrencies and this decision by the Government of India will help such core tech innovation to flourish without any fear. The Indian Government legitimatised crypto assets in India in an indirect way by coming out to tax the same. This is a strong step taken to boost a digital economy. DigitalRupee is a historical decision by the visionary GoI. This will give a boost to the economy and create increased digital financial participation among the youth. India's Digital currency will bring about an efficient, credible, payments option. It will also reduce dependency on cash, and increase cheaper currency management system in the long run. We welcome this move and laud the vision of the Finance Ministry which will take India way ahead." - Toshendra Sharma, Founder and CEO, NFTically

“The Financial Budget Promises To Prioritize Clean Energy Resources For Eco-Friendly Mobility”

“Finance Minister Nirmala Sitharaman laid down the Union Budget for FY 2022-23, laying the blueprint for India’s growth for the next 25 years. The promise of inclusive growth in the Travel and Tourism sector prioritizing the PM Gati Shakti initiative to grow India economically facilitating faster movement of goods and people. 400 new Vande Bharat Trains to be manufactured and launched in the next 3 years to upgrade the Railway sector. It will help in setting the tone of the travel sector-leading towards growth. The financial budget promises to prioritize clean energy resources for eco-friendly mobility. This step will help us build environment-friendly transportation with the introduction of EVs and more. The highway expansion project of 25,000 km will lead us to proper connectivity boosting the travel network.  Implementation of the multimodal logistic parks at 4 locations in 2022-23 in PPP mode will lead to various ventures helping the sector intensively.” - Prashant Kumar, Co-Founder & CEO, Zingbus

“The 2022 Budget Saw Many Missed Expectations For SMEs And Start-Ups” 

“The 2022 Budget saw many missed expectations for SMEs and Start-ups. As one of the fastest growing contributors to GDP, the SaaS sector should be promoted more by the central government. Share allocation process for start-ups to be simplified. Low cost tech education in Tier 3 and smaller towns is a huge must, as supply of skilled tech workers is at an all time low compared to demand. Getting government contracts for tech start-ups is still very complicated and should be made easier. Labour Law reforms for tech companies would be appreciated too. The govt needs to stand behind Indian SaaS companies to make India the no. 1 SaaS exporter in the world. Hopefully we will see some of this in next year's budget”. - Arjun Gupta, Founder, Courseplay 

"Budget 2022 Gave A Major And Much Needed Thrust To Digital Skilling”

"Budget 2022 gave a major and much needed thrust to digital skilling with initiatives like Digital DESH. Emphasis on a digital ecosystem for skilling and livelihood points to the much-needed market oriented digital skills development". - Vikram Kumar, Co-founder, MyTat

“The Budget Has Covered Multiple Avenues For Drone Industry To Rise” 

“The FM announced a very progressive budget keeping a horizon and outlook of 3-4 years. The budget has covered multiple avenues for drone industry to rise, the focus on promoting Agricultural Drones and NABARD fund to support startups will result in ensuring that the Drone Industry reach a new milestone. The development of 100 new cargo terminals in the next 3 years will also add to the growth of Drones enabled to use for cargo deliveries within the terminals and terminals to delivery locations. The budget has been a very guiding force towards our Hon’ble PM’s vision for “Making India a Global Drone Hub by 2030” - Swapnik Jakkampudi, Co-Founder, Skye Air Mobility

“The Boost In Ease Of Doing Business Will Give A Desired Push To The Goal Of Becoming Atma Nirbhar Bharat” 

"We support the government's focus on technology, it will help many tech based companies like WORLD OF PLAY to come up with exciting product experience for the Indian consumers. We welcome the focus of government on the wearables and acoustic component ecosystem and domestic manufacturing and believe on a long term, this focus will make India as a formidable design and manufacturing powerhouse. Additionally the boost in ease of doing business and special impetus on creating 60 lakh new jobs will give a desired push to the goal of becoming Atma Nirbhar Bharat. As a brand, we promote and follow Make in India and we believe long-term policies like this will give us the desired support for the local design and also manufacturing in India." - Vikas Jain, Co Founder and CEO, World of Play 

“The Union Budget Has Very Positively Taken Note Of All Economic Aspects And Ensures An Upward Growth” 

“India’s huge start-up potential, especially in the technology sector will get a boost from the newly announced tax redemption for another one year. In lieu of the global pandemic, the introduced tax benefits will help foster new businesses and attract further investment in the sector. Additionally, with 5G technology being promised in the coming year, the IT sector will invite lucrative offers in terms of innovation, manufacturing and employment opportunities. It’s important to note that the promised amount of Rs. 6,000 crore for the MSMEs in India will prove to be a significant growth factor for the span of next five years. The union budget has very positively taken note of all economic aspects and ensures an upward growth. We are hopeful that the profits will be on the higher end of the spectrum.” - Vidhu Nautiyal, Chief Revenue Officer, CloudConnect

“A Push For Start-Ups And MSMEs Were Prevalent Themes In This Year's Union Budget Announcement”

“A push for start-ups and MSMEs, along with a focus on job creation across sectors, were prevalent themes in this year's Union Budget announcement. We applaud the thought leadership that the government has showcased in encouraging digitization and offering tax incentives and schemes that will benefit start-up owners at large. Our country has a legacy of producing some of the world's sharpest minds, and a large section of our youth today is brimming with an entrepreneurial mindset. Hence, the government's interest in scaling investments for start-ups across sectors is credible. Furthermore, while the projections are promising from a job creation perspective, analysing how these opportunities reach the masses will be essential.” - Naveen Jangir, Co-founder, Incluzon

“The Budget 2022, Is A Step In The Right Direction To Connect India To The Truly Atma Nirbhar Bharat” 

“The Budget 2022, is a step in the right direction to connect India to the truly Atma Nirbhar Bharat. Government contributions towards R&D in sunrise opportunities such as AI, semiconductors and its ecosystem as well as the calibration of custom duty rates and concessions towards the domestic manufacturing of high growth electronic items as well as on parts of phone chargers, transformers, wearables will provide the necessary boost required for the upgradation of the sector.”

“Continuing from the previous year’s success, the startup ecosystem has indeed emerged as growth drivers for the country. The rationalization of surcharge being capped at 15% for individual companies and AOPs on long term capital gains along with the period of incorporation being extended till March 2023 for startup tax benefits will support the amplification of the startup ecosystem in India. Additionally, the establishment of an expert committee towards the scaling up of last year’s INR 5.5 lakh crore investments via Venture Capital and Private Equity for the startup ecosystem will prove to be an invaluable asset for the companies entering the space. With continued focus on the caliber of affordable 5G network as part of the PLI Scheme in rural as well as urban areas alongside the allocation of 5% annual collection under USOs is sure to link together the growth in the telecom and consumer electronic sectors.” - Mandeep Manocha, Co-founder & CEO, Cashify 

“CGTMSE Scheme And RAMP Programme Will Support Their Revival And Growth”

“The Union Budget 2022 saw the MSME sector getting a much needed booster dose with a series of initiatives that will accelerate economic growth. The extension of Emergency Credit Line Guarantee Scheme (ECLGS) and the interlinking of Udyam, e-Shram, National Career Service(NCS), and Aatamanirbhar Skilled Employee Employer Mapping (ASEEM) portals is a positive move as it will enable ease of doing business in India which in turn will encourage entrepreneurship.  Moreover, Credit Guarantee Trust for Micro and Small Enterprises (CGTMSE) scheme and RAMP programme  will also support their revival and growth.” - Dilli Babu Nandarapu, Founder & CEO, ShopConnect

“The Government Has Recognised That India Has Achieved The Product-Market Fit For Startups”

“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 which have created more than 6 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 5 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 of that.”

“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 optimize the shipping process and save cost burdens for the e-commerce industry. Apart from these, data centres have now been awarded the infrastructural status. This 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 extremely 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.”- Chirag Taneja, Cofounder and CEO, GoKwik 

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