Budget Expectations: Startups want easy access to funds, streamlining of norms

Vijay C Roy

Chandigarh, July 18

India’s booming startup ecosystem, a key driver of digitalisation, has high expectations rom the upcoming Union Budget. In the recent past, the Budget had played a pivotal role in shaping the trajectory of startups, and stakeholders are hopeful for significant reforms this year as well. Streamlining of regulations, and easier access to capital are some of the major expectations of the industry.

Ensure hassle-free capital

Startups demanded the budget to introduce initiatives to enhance funding opportunities, and improving access to credit. Founders said there were a need to encourage startup investments, and make the sector more appealing. One way could be to enable re-investment in startups to get a boost through a tax exemption. This will enable the startups to have easy access of funds. Also, increased investment in policies that simplify doing business and empower startups and emerging technologies, such as artificial intelligence (AI), is essential.

Incentivise SMEs

Companies operating in cybersecurity space anticipate the budget to prioritise cybersecurity investments. “We expect enhanced funding for cybersecurity infrastructure, focusing on advanced threat detection and response systems. We hope for incentives for SMEs to adopt robust cybersecurity measures and stringent data protection regulations to safeguard India’s sensitive information. Fostering public-private partnerships can drive innovation and resilience in our digital landscape. A budget emphasizing these aspects will strengthen India’s cyber defence and promote a cyber-safe and secure digital future,” said Tarun Malhotra, Founder and MD of Cyber Cops.

Boost research & development

The startups expect targeted initiatives that support R&D, provide easier access to capital, and offer production-linked incentives. These measures would enable the start-ups to scale operations, innovate rapidly, and contribute more significantly to India’s manufacturing capabilities. Moreover, they anticipate policies that promote the integration of various technology and support the development of a circular economy.

Regulatory framework

Startups in healthcare space feel that there was an urgent need for a supportive regulatory framework that encourages innovation while ensuring compliance. “Tax incentives, grants, and dedicated incubation centres to foster growth within the healthtech ecosystem would enhance its growth in the larger healthcare sector. Additionally, the upcoming Budget presents a significant opportunity for the government to support the growth of startups driven by women entrepreneurs, especially in the healthtech sector. They can be empowered through targeted financial assistance, mentorship programs, and subsidy initiatives,” said Dr Chandrika Kambam, Founder and Managing Director, Anastomos, a Healthtech Platform.