The hits and misses of Budget 2020
If Finance Minister Nirmala Sitharaman's latest Union Budget address is anything to go by, India's growing crop of tech-led startups are set to benefit from an improved operating environment.
Budget 2020-2021 provided more incentives for the Indian startup ecosystem including relaxed rules for Employee Stock Options (ESOPs), GST tax structure, and a seed fund to aid funding for early-stage startups.
And, it also laid special emphasis on the use of new-age technologies like Artificial Intelligence (AI), Machine Learning (ML), and quantum computing – a major positive for India's tech-oriented startups. On the other hand, this year’s Budget mentioned no structural measures to increase the fund flow into the startup ecosystem – a great need of the hour.
Most industry experts expected Union Budget 2020-21 to be people-friendly and directed at increasing consumer spending. But, customs duty hikes on almost all items of daily usage indicate otherwise.
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Manufacturing and healthcare companies consider Budget 2020 a step in the right direction and NBFCs concur. However, gold jewellers and businesses struggling with compliance are concerned.
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