Although Finance Minister and his team have entered into the 12th hour of preparations for Union Budget presentation in the parliament, the industry is still coming forward in big numbers with their demands, expectations and recommendations.
The team of SMEStreet is committed to reaching out and understanding Industry’s core issues that need to get addressed at this year’s policy document of Budget.
Demands for Empowering FINTECH Segment
Mr. Alok Mittal, CEO & Co-founder, Indifi Technologies: “We expect the latest budget to define concrete steps to mobilize access to financial services and empower the fintech companies that facilitate them. For instance, extending credit guarantee schemes such as MUDRA and facilitating better data access to alternate lending companies can help in bolstering the impact and reach of these initiatives. Doing so can ensure high growth potential for MSMEs in India – being one of the most dynamic and critical sectors of the nation’s economy.”
Demands & Recommendations for Motivating Technology Usage
Mr. Dilip Modi, Founder and Chairman, DiGiSPICE says, “Preparations for the Budget 2019 are in full swing and this being an election year, the expectations are running high. While populist mechanisms such as relief in taxes and loans are being predicted, we expect the government to also address a few of the concerns of the technology sector and present some opportunities. As the role of AI< machine learning, analytics, automation and IoT becomes more prominent across industries and verticals, the government would need to allocate resources that help strengthen digital infrastructure. Multi-dimensional policies will be required to promote adoption of technology, build a framework to optimize its effects and facilitate players that help to introduce such technology on a nation-wide scale.
Dedicated ‘Special Digital Zones’ like SEZs, operational subsidies, reducing import duties on essential hardware and components, guidelines to safeguard Intellectual Property and development of institutions to aid in upskilling are a few immediate requirements of technology players. Adoption of digital technology needs to be promoted for India’s SME and MSME sector be competitive to foreign entrants and big players. We will also see more technological intervention in the implementation and execution of public services, post the success of pilot projects such as those employed by state governments of Telangana and Kerala. Indian public sector is aiming to improve efficiency and transparency of government procedures through mass-scale technological intervention, and we think Budget 2019 will be a watershed moment in this journey. ”
Mr. Kumar Abhishek, CEO & Co-founder, Amazon backed ToneTag commented, “Among various agendas, Prime Minister Narendra Modi has taken steps to promote young entrepreneurs in the country. The startup ecosystem is eyeing the Union Budget 2019, as the government is slowly recognizing the potential of startups and framing policies that create a favorable environment for them. While the Startup India Scheme has aimed to provide multiple benefits to startups in the form of easy license clearance, tax cuts and minimum regulatory interference, it has not entirely been a smooth road for the startup ecosystem.
The government believes that the startup industry is the backbone of the economy and is the major generator of employment. The Reserve Bank of India has issued new guidelines for debt reconstruction for Micro, Small and Medium Enterprises, which would help the sector to lead the current consolidation phase in the country. From the Union Budget 2019, startups are expecting a faster and easier method for procedural clearance and license approvals. They are also looking for an increase in allocation of funds towards the adoption of new technologies such as AI and Blockchain. With the success of the Digital India scheme, the industry is looking for an allocation of adequate funds to further the cause. Startups are also expecting a decrease in unnecessary regulatory supervision and government interference which will allow them to operate without any pressure. Increase investment in training, research and skill development in areas like Big Data, IOT, Robotics, and other digital tools, will act as a facilitator of the startup growth. With the Union Budget around the corner, the startup sector is keenly awaiting the policies the government will lay down.”