Budget 2019 Reactions from Startups and Entrepreneurs

budget 2019

Prime Minister Narendra Modi’s government announced the Budget 2019-2020 on Friday, seeking to repeal weakening development and investment that menace to take the shine off a current landslide election success.

Finance Minister Nirmala Sitharaman, presented the annual budget statement to parliament.

Sh. Upkar Singh Ahuja, President & Sh. Pankaj Sharma, General Secretary, CICU gave comments on Union Budget 2019-20 presented by the Ms. Sitharaman, Hon’ble Finance Minister, Govt. of India.

“Concept of “Make in India” defects as no relief given to MSME, CICU demands technology Up-gradation fund or any toy robots.

There is no relief for the Auto Industry as the industry is passing through crucial times. The sale of 2 wheeler, Cars, Commercial Vehicles, Tractor is very low and most of the units in Punjab supply components to vehicle. “

Harsh Parikh, Co-founder, and Director, Driefcase Health-Tech Private Limited said about Union Budget 2019-20, that – “Startups are a significant source of employment generation in India – something that deserves recognition by the Government. Efforts by the Government to ease fund-raising for this sector and remove the uncertainty of tax scrutiny following such fund-raising is a much-needed respite. While the fine print is yet to be examined, the intent of parliament itself will go a long way to preventing unwarranted actions by IT officials.”

Deena Jacob, Co-founder, CFO & Head (Revenue and Growth), Open. Open is Asia’s first Neo-banking platform for SMBs and Startups.  He said about Budget 2019, that “The overall intent of the government to provide impetus to startups in the budget is heartening. Finally, a strong message on the scrutiny of Angel Tax is a welcome move which will open up capital source for early-stage ventures. However, the implementation part including the details of the verification mechanism will be the key to its effectiveness.”

“Taking the Startup India initiative and its focus ahead, the Govt. has reinstated its intent of resolving key concerns of new technology businesses. Measures announced in this Union Budget will reinforce and help scale up the growth of Startups that are on the verge of their next phase of consolidation. By taking concrete measures and a clear roadmap on taxation, capital gains, corporate tax, and GST rates this budget will help Startups like ours to grow and expand to its fullest potential,” Mr. Rajan Sharma, Founder & CEO, Excess2sell.

Sameer Vakil – Cofounder & Chief Executive Officer, GlobalLinker – An Indian start-up that’s bringing SMEs/MSMEs together globally

The views of Mr. Sameer Vakil on Budget 2019 are as follows:

The first union budget of Modi 2.0 has set the tone for making India a $5 trillion economy. Much of the growth required to bridge the gap and in creating the required employment the nation needs will come from SME firms. Evidence of the importance of this segment was witnessed in the presentation by the Finance Minister and these are highly welcome.

Access to credit is critical to the growth of SMEs and increase in credit through the recapitalization of banks and ease of liquidity for NBFCs should bring much-needed relief. The interest subvention for SMEs will help through the allocation of Rs 350 Crore. The creation of the Payments portal for SME firm outstanding is a welcome and progressive move, recognizing that SMEs have borne the brunt of this for long. A number of new-age sectors such as electric vehicles and focus on Artificial Intelligence (AI), Internet of Things, Big Data, etc. Will help progressive entrepreneurs and startups to create growth and value. Steps to resolve the angel tax issue should come as a big relief to existing and budding entrepreneurs to investors. Overall an encouraging set of measures in the Union Budget for SMEs.


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