Reaction to the Union Budget 2023-24 (Fintech/Blockchain)
Finance Minister Nirmala Sitharaman today presented the Union Budget 2023. Presenting her fifth budget, the finance minister announced an accelerator fund to push agritech start-ups, revisions in customs and start-up policies.
Here are a few reactions from Fintech/blockchain startup owners on the Union Budget 2023-24.
Mr. Vineet Patawari – Co-founder CEO StockEdge, a Fintech platform said:
The Indian Union Budget 2023 has made significant announcements that will impact the agritech and fintech sectors. The government is taking steps to build a digital public infrastructure for agriculture, which will provide inclusive farmer-centric services for crop protection. This move will be a big boost for agritech startups. The expansion of the Government’s digital certificate depository Digilocker services for the fintech sector will also be beneficial for fintech startups. The budget also focused on continuing to strengthen the digital payments infrastructure in India through UPI and India Stack. The Minister of Finance extended the carry forward of losses for start-up companies on changes in ownership to 10 years from foundation, up from 7 years previously. Other measures in the budget were aimed at easing the process of doing business and reducing the compliance burden for startups.
The budget was true to the slogan “Sabka Sath Sabka Biswas”. FM has laid out a plan for strong progress in the growth of our economy. Capital expenditure has increased by 33%, which will lead to a multiplier effect on GDP growth. The current deficit estimate is kept within the expected level of 5.9%. Personal taxes are reduced by increasing rebates from 5 lakhs to 7 lakhs, and restructuring the tax slabs. There is continuity in reforms, fiscal prudence, digitization of the economy, infrastructure development, rural and tribal upliftment, ease of doing business and ease of living for urban citizens.
This budget lays the framework for a new India in the next twenty-five years which is celebrated as Azaadi ka Amrut Mahotsav.
Mahin Gupta, founder of Liminal, a digital wallet platform, said:
The budget announcements by the Hon’ble Finance Minister have infused new energy into the startup ecosystem across the country. The tax holiday for start-up companies has been extended to 10 years, which will provide much-needed liquidity to start-up companies in the growth phase; This is a master move by the government because as the economy opens up, we will see more start-ups emerging in technology, digital payments, digital infrastructure and agri-tech that will create a strong foundation for the next decade of economic growth, innovation and job creation .
This is an amazing time to be a start-up entrepreneur in India as the government is committed to promoting the growth of existing start-ups while encouraging youth to join the start-up revolution, which will not only contribute to the economic growth of the country, but will make India a global hub for fin-tech innovation.
We also appreciate the government’s move towards making business easier. Compliance culminates in a large part of the creation of businesses, especially in the high technology sector. We at Liminal place great emphasis on creating a regulated and compliant ecosystem to ensure transparency, and the government’s announcement to reduce more than 39,000 compliance to provide is a welcome move.
Increasing capital expenditure by 33 per cent to Rs 10 lakh crore for infrastructure development by 2023-24, which is 3.3 per cent of GDP, is very encouraging as it is expected to increase digital infrastructure across the country to deliver digital services to the remotest part of India. However, no change in taxation was something that was expected in relation to digital assets, as the government is still testing the waters with the CBDC pilot project underway.
Additionally, public digital infrastructure for the Agri sector under an open source standard will revolutionize the industry, propelling it to unprecedented levels of growth. By harnessing the power of 5G, Web 3.0 and Metaverse technologies, GDP growth can be accelerated by a significant percentage. This digital infrastructure, which ranges from supply chain optimization to analytics, will strengthen the agri value chain and make it even stronger and more productive.
Shivam Thakral, CEO of BuyUcoin, India’s second longest running crypto exchange:
The union’s budget 2023-24 is aimed at making India a start-up capital of the world. The Agriculture Accelerator Fund announced by the Hon’ble Finance Minister will encourage many talented entrepreneurs to jump on the agriculture technology startup bandwagon. We are pleased to see that the tax holiday for start-ups has been extended to 10 years as it will provide immediate comfort to those start-ups who are engrossed in innovation and need liquidity for product development.
The relaxation of the tax exemption limit to 7 lacs will increase the surplus funds of the common man, which will trigger activity in various sectors such as investments in digital assets, consumer goods and tourism.
The focus on infrastructure development in the current budget will increase physical and digital infrastructure to catalyze India’s economic growth and achieve the goal of a $5 trillion digital economy. Overall, this budget caters to the aspirations of ambitious India which is ready to make its mark at the global level.
Tarusha Mittal COO and Co-Founder, Dapps and UniFarm, said:
We are pleased to see a special focus on start-ups in the Union Budget 2023-24. The creation of an agricultural accelerator fund is a bold move towards driving innovation and creating more jobs for the youth in our country. The startup space will get a big boost from the extension of the tax holiday as it is expected to increase cash flow which is critical for the growth of any startup.
The fintech sector is expected to become a $200 billion behemoth by 2030 and the current budget has extended the Digi locker services to start-ups to promote innovation in fintech services. India’s robust digital infrastructure will enable greater penetration of web3-related products and services.
The simplification of KYC procedures by making PAN a common identifier for all digital systems will support the vision of Digital India. The PAN-based KYC will enable fintech companies to make customer onboarding highly convenient while simplifying KYC reporting to the relevant authorities.
MR. V. Srinivasan, Chairman, eMudhra, said:
“The emphasis on digitization of India in the Union Budget is commendable. The vision for Amrit Kaal includes a technology-driven and knowledge-based India. The proposed National Data Governance Policy will help to increase data-driven development and encourage technological growth. The push to create Centers of Excellence in AI will help create a digital ‘Aatmanirbhar’ India and promote AI-based solutions across sectors. The introduction of Entity Digi Locker for business enterprises will facilitate online storage of documents that will accelerate the digital transformation of the country.”
