As the Modi government gears up to present its third budget in the year 2024, expectations are running high among startups and investors alike. The Union Budget is a pivotal moment for the economy, setting the tone for policies that will shape the growth trajectory of the country.
Key Expectations from Startups
Startups have been the backbone of India’s rapid economic growth in recent years, with innovative ideas and technology driving disruption across various sectors. Here are some key expectations that startups have from the upcoming budget:
- Taxation Reforms: Startups are hoping for tax relief measures to ease their financial burden and stimulate investment in their ventures. Incentives such as tax holidays and exemptions on capital gains would go a long way in encouraging entrepreneurship.
- Easier Access to Funding: Startups are looking for easier access to venture capital funding through a dedicated fund or support mechanism. This would provide much-needed liquidity for scaling up operations and expanding market reach.
- Skill Development Initiatives: Startups need skilled manpower to drive innovation and growth. They expect initiatives in the budget to promote skill development programs tailored to their specific needs, ensuring a steady supply of talent.
Expectations from Investors
Investors play a crucial role in fueling startup growth by providing funding and mentorship. Here are some key expectations that investors have from the upcoming budget:
- Incentivizing Investment: Investors are hoping for incentives such as tax breaks or credits on investments made in startups, encouraging them to deploy capital into high-potential ventures.
- Regulatory Clarity: Investors seek regulatory clarity on issues such as foreign direct investment (FDI) norms, intellectual property rights (IPR), and data protection laws. Clear guidelines would boost investor confidence and foster a conducive environment for business expansion.
- Digital Infrastructure: With digital transformation sweeping industries, investors expect investments in building robust digital infrastructure, including high-speed internet connectivity and cybersecurity measures. This would create a level playing field for tech startups and ensure seamless operations.
The Road Ahead
The Union Budget 2024 holds immense significance for startups and investors, shaping their future prospects in an evolving economic landscape. As Modi 3.0 unfolds its vision for sustainable growth and innovation-driven policies, all eyes will be on how these expectations materialize into concrete actions that propel India towards becoming a global startup hub.
