Start-up India: Prime Minister Modi has super charged the Young India by sharing his vision and initiatives to encourage entrepreneurship. Initiatives such as Start-Up India and Make in India are sparking a new hope and buoyancy in every budding entrepreneur. While, it is important for government to encourage new technologies, we expect and hope that the Government will choose to work as catalyst instead of setting the rules of the games altogether.
The Public sector banks are facing a tough task of handling NPA and necessary reforms are needed to channelize the funds to boost the economy. The RBI and banks are on the right path to achieve it in medium terms. This is also creating opportunities to embrace new technologies and newer ways to provide banking services.
There are expectations of increase in service tax from 14.5 per cent to 16 per cent while reducing the corporate tax to 29 per cent from 30 per cent, which brings out the focus on indirect taxes rather than direct taxes, it is a move to achieve GST in medium term.
We expect government to provide a boost to Rural infrastructure which will give good economic boost originating from grassroots.
There is immediate need to focus on skill development & employment incentives to improve skills and the resource pool of India.
While details are crucial, the intent of the government is clear and we welcome the focus to Start-up India and development of its ecosystem, the expectations will be linked to few points:
Allowing capitalizing the expenses made for brand building, this will allow start-ups to face up to larger competition as building a brand is an important element of success and marketing expenses are very difficult to focus on.
Waiver of 20 percent capital gain.
We welcome the announcement of providing Income tax exemption for 3 years.
Incubation centres: this will help create an ecosystem for developing the initial push needed to build start-ups across categories. The promise of 25 billion will greatly build confidence in this space.
Improved Telecom connectivity to boost start-ups across the country and not limited to top cities only.
As a new FinTech Start-up we believe this year will be most exciting in India to build a new start-up, the capitalization and income tax exemption features, if materialized will greatly boost our future to succeed and help us raise future funds for growth.
