Budget 2023: What technology driven sector is expecting
- The government has always pushed technology with initiatives like digital India which makes the technology giants more optimistic about budget plans
With Union Budget 2023 just a day away, the technology sector is expecting some revolutionary policies. The government has always pushed technology with initiatives like digital India which makes the technology giants more optimistic about budget plans.
Mr. Bhaskar Mishra, Head of Product, Mihup emphasized the 2023 will be a crucial year from technology point of view. “This year is going to be very crucial for the government’s efforts to boost digitization in India, in the tech and startup industry, especially the AI solution providers, have pinned a lot of hopes on the upcoming Union Budget. The policy decisions and budgetary allocations that the government would make are expected to shape the future of India's thriving startup ecosystem,” Mishra said.
“The AI and startup sectors are in anticipation of steps like increasing the angel investor pool at the seed stage and a tax relief incentive of 30% of the cost of equity shares set off against the investor’s income tax liability for the year in which the investment was made. In many cases, employees tend to use ESOPs to accumulate wealth and use the same to launch their own startups. That’s why the startup sector has been demanding that the ESOPs should be taxed at the time of sale, and not at the time of vesting,” he added.
In the Fintech space Mr. Saurav Ghosh and Mr. Vineet Agrawal, Co-founders, Jiraaf believe that amid geopolitical tensions, attracting foreign investment into key growth sectors must be streamlined.
“In view of the current volatile market and looming uncertainty due to inflation, war, & possible recession, some of the most important areas of focus for the Indian Union Budget 2023/24 must be around supporting sustainable growth, keeping in check inflation, and attracting foreign investments into key growth sectors,” they said.
“To support individual taxpayers some of the actions that can be taken include changes to current taxation such as increasing basic income tax exemption limit, standard deduction, limits under Sections 80C and 80D, and changing the 30% taxation slab. Also bringing parity to Long-Term Capital Gains Taxes between equities and debt/real estate investments would help fixed-income investments grow, and boost investor confidence in long-term investment products.”
Mr. Abhijit Bhattacharya, Founder & CBO, OneGreen is expecting government policies to benefit overall quality of life.
“There have been several steps taken by the government in the last few years to benefit the economy as well as the startup ecosystem such as digitization, innovation support, ease of doing business, FDI policies, and funding support. The Make In India initiative has also led to the emergence of several home-grown startups that are creating solutions to bring about sustainable change in lifestyles,” Bhattacharya said.
“With the world staring at several challenges, we hope that the government will introduce policies, initiatives, guidelines, and financial steps that will not just create more economic output, but also benefit the overall life quality and productivity of the 1.4 billion Indians. Concerns about the higher cost of plant-based organic foods and lack of awareness about nutritional options, have to be eliminated through sustained information sharing and support for companies manufacturing green nutrition products,” he added.
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First Published:31 Jan 2023, 07:40 PM IST
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