Budget 2020: Goal of $5 tn economy, and startups' role

By Lizzie Chapman

Finance Minister, Nirmala Sitharaman’s acknowledgment of the role startups will play in making India a five trillion dollar economy by 2025 is a significant step. The proposed measures in securing funding, taxation and skill development ensure ease of doing business and will encourage more entrepreneurs to create jobs. The Bharat Net Programme focused on digital connectivity across India will further boost access to digital finance and credit and spreading financial literacy.

Deferring tax on ESOPs will accelerate growth in many startups by helping them attract the best talent they need to thrive. I believe that it should take away the resistance employees generally have while accepting ESOPs and lead to a secure financial future in their startup, where there is a long term commitment to progress from both ends. DDT should further boost FDI in startups.

While UPI and advent of fintech was noted in the budget, the industry was deprived of due attention. Financial inclusion in India has been just short of a major push led by a truly digital economy, where everyone has the power of digital payments and access to lending, among other suitable financial products.

(Lizzie Chapman, CEO & Co-Founder, ZestMoney)