Budget 2021: Here's the number of times 'startup' was mentioned in India's first ever digital budget
The Narendra Modi government has always been very vocal about its support for the Indian startup ecosystem. So, it was not surprising, when Finance Minister Nirmala Sitharaman mentioned the word 'startup' several times during her budget speech that lasted nearly two hours. The finance minister mentioned 'startup' 11 times, in India's first ever digital or paper-less budget.
This year's count was however, lesser than last year's, when she mentioned 'startup' 18 times. Last year's budget speech was also the longest ever, lasting nearly three hours.
In a bid to boost India's growing startup ecosystem, the finance minister in this year's speech announced tax incentives, and an extension in capital gains exemption for startups.
The finance minister proposed to extend the eligibility of tax holiday for startups by one more year. “In order to incentivise startups in the country, I propose to extend the eligibility for claiming tax holiday for startups by one more year - till March 31, 2022. Further, in order to incentivise funding of the startups, I propose to extend the capital gains exemption for investment in startups by one more year - till March 31, 2022," she said.
Lauding the the move, fintech startup, Junio's Co-founder, Ankit Gera, said, “The extension of tax holidays for start-ups and capital gains will also spark greater capital activity in the investment landscape and serve as an enabler of robust early-stage venture funding for start-ups."
During Monday's budget speech, the finance minister also proposed the incorporation of one-person companies, with no restriction in paid-up capital and turnover. This would enable entrepreneurship by enabling innovators to set up one-person companies with no restrictions, she said. An updated definition of small companies under Companies Act, 2013 was also proposed by raising the capital base to Rs 2 crore from the current limit of Rs 50 lakh.
Venture capital, 100X.VC's Founder and CFO,Yagnesh Sanghrajka, believes this move will help in attracting more investments. “A couple of changes announced today that may bring a positive change to the industry is the incorporation of one-person companies for single founders that will enable them to start their own company, register it, and attract investments,” he said.
For YourStory's multimedia coverage of Budget 2021, visit YourStory's Budget 2021 page or budget.yourstory.com.