Budget 2019: Startups and Technology Industry Outlook

 

Budget 2019 reaffirm government’s commitment towards building a Digital India

Anuraga Avula, Shopmatic

The 2019 budget announcements certainly reaffirm the government’s commitment towards building a Digital India and creating opportunities for small scale Indian businesses for running successful e-commerce businesses. Though the decision to bring changes in the FDI policy for e-commerce platforms was to level the playing field for small scale sellers, the interim budget announcement comes bearing more favorable news.

As announced in the interim budget, the government is aiming for one lakh digital villages in the next 5 years. This is going to prove as a strong economic driver by promoting digital payments and more importantly, exposing rural businesses to the prospects of selling online.

At Shopmatic, it has been our vision to help aspiring entrepreneurs enter the world of e-commerce without the common problems of capital expenses, complexities involved. Our app will certainly help drive adoption to e-commerce even from remote parts of the country. We are glad that the government is pushing for digitalization in Indian villages and will be utilizing this opportunity to enhance our reach in the hinterlands of India and assist the rural artisans, craftsperson, sellers, and businesses in coming aboard the digital wave.

Development of National Artificial Intelligence portal will boost R&D measures in the field of AI

Atul Rai, Staqu

The government has been banking on digital technologies such as AI, machine learning, big data and more. Thus, in the interim budget, we had expected a significant boost by the government. We are glad to find out the government’s plans of developing a National Artificial Intelligence portal, which will significantly boost research and development measures in the field of Artificial Intelligence.

Budget will provide great boost to SMEs

Jitender Singh, MiniDukan

It is great news for companies which deal with customers in Tier 4 to 6 towns, that the Government will introduce 1 lakh digital villages in the next 5 years. Digitization of rural areas has increasingly become a necessity, as a large section of our consumers are based there. In addition, the GST provisions given where SMEs earning less than 5 crores will have to file GST only once in 3 months is sure to relieve some of the load faced in recent years. The greatest benefit for us will be the reduction of taxes on salaried individuals which will result in greater buying power, which is exactly what we have been hoping to achieve. This Budget is sure to provide a great boost to the overall performance of SMEs.

The initiative of Digital Village will cater to the wider audience

Amtosh Singh,PropShop24

The Union Budget 2019-20 ensures a boost to MSMEs and e-preneurs. The increase in basic exemption limit to INR 5,00,000 can be encouraging for the e-commerce industry as the customers will now have more disposable income to spend. Also, quarterly filing of GST returns for businesses with turnover of 5 crores is a welcoming stride. It promises to reduce the burden of compliance for small players/businesses in the market. The initiative of Digital Village will cater to the wider audience and is showing a great potential for e-tailers.

Forward-looking budget

Aakrit Vaish, Haptik

With the announcement of National Artificial Intelligence portal, we expect India to be propelled on the path of leveraging advanced and disruptive technologies for economic prosperity and growth. We congratulate the government for this forward-looking budget.

Arun Balasubramian, Qlik India

The interim budget, the government has rightly comprehended the necessity and competence of digital technologies such as AI, machine learning, big data and more. We are glad to find out the government’s plans of developing a National Artificial Intelligence portal, which will significantly boost research and development measures and thus allow businesses of all sizes and sectors to gain better data-driven and decision-making insights and advance the nation in competitive global space.

Sanjeev Gulati, VIVOTEK

The inclination of IP surveillance industry towards the AI technology is expected to further boost with the establishment of National Artificial Intelligence Portal. Not only this, the ongoing smart surveillance projects in railways is another positive development as Indian railways have been allocated a lion’s share in this year’s budget.
India, on the other hand, is also fast-developing its highways with a prime focus on rural roads. Smart surveillance can tangibly increase the efficiency of authorities on keeping a track of such projects which will later also ensure safe and secure traffic management.

Kunal Agarwal, Priority Vendor

As India’s largest early payment platform, we at Priority Vendor believe that the interim budget carries some of the significant developments, especially for our SME partners. Businesses registered as SMEs will now receive a 2% loan relaxation by the government, thus easing their access to organised credit facilities. Furthermore, the announcement also gave a boost to SME suppliers, making it mandatory for the government projects to source 25% of their requirements from SMEs. The segment has also been bogged down with the GST compliance, however as per the announcement, SMEs with a turnover of less than 5 Cr need to only file GST once in three months.

While the SME segment would be appeased, we believe the interim budget to also be forward-looking. India has already emerged as the second largest hub for start-ups and the government has vowed to support advanced technologies like AI
by setting up a national centre for artificial intelligence. We believe it will propel India on the path of emerging as the key centre for growth and innovation. With artificial intelligence constituting the very fabric of our platform, we are excited about this development and look forward to being part of an innovating, enterprising, and digital India.

Raman Mittal, TO THE NEW

The Union Budget 2019 provides a great push towards technology adoption. With the National Artificial Intelligence portal to be developed soon, it is good to see the focus increasing on leveraging best-in-class technologies to improve the overall quality of life in India. The idea of Digital Villages & Rural Industrialisation is a great impetus for companies like us building digital infrastructure for a connected India.

Neel Juriasingani, DataCultr

Startups and the industry can take clues out of the various topics touched upon in this budget, to understand the direction and focus. Startups will have an integral role to play towards Vision 2030, it’s a great opportunity.
The concept of Digital villages and rural industrialisation opens up great avenues for companies & start-ups like us in the IOT & AI space, as well as for those working on building digital infrastructure of a connected India.

Saahil Goel, Shiprocket

Budget 2019 clearly recognizes the strain on the economy, particularly in the SME, MSME’s along with the technology sector. We welcome the move of Government, where they will source 25% of their requirements from SME’s along with 2% interest subvention for MSME’s loans with ticket size up to Rs.1 crore. GST is undoubtedly the biggest taxation reform implemented since Independence and through tax consolidation, India became one single taxation market. We look forward to India becoming the second largest hub for startups with youth turning into job creators from job seekers. In terms of the technology, Government has taken a welcome step by announcing the development of a National artificial
intelligence portal.

Budget 2019 is very positive from a social sector perspective

Bhaskar Enaganti, SociallyGood

The budget 2019, though interim, is very positive from a social sector perspective. The individual tax has been relaxed and the tax ceiling raised. Indians will have more money to donate & support social causes. Vision 2030 mentions clean rivers, coast lines and health as priorities which is welcome. Incentives to support social workers in these areas by offering tax benefits for CSR targeted this area or PPP scheme will have been more impactful. We hope the subsequent budget will have a definite proposal for tax benefits for Rashtriya Arogya Nidhi and National health protection scheme for both CSR/non-CSR companies.