Tax credits, low-cost financing on startups' wish list for Union Budget 2021

After a bleak 2020, the startup ecosystem is looking forward to policies that extend low-cost financing, encourage angel investors to invest more and easing of taxes when Finance Minister Nirmala Sitharaman presents the Union Budget for 2021-22 on February 1.

According to the Startup India portal, there are 42,527 startups recognised by the Department for Promotion of Industry and Internal Trade and 11 ventures defied the odds presented by Covid-19 pandemic to get the coveted unicorn status by notching up valuation of a billion dollars and more.

However, many a start-up venture have pinned their hopes on the Union Budget to help them take flight.

“Year 2020 was more of a year of survival and challenges. So from the Budget 2021-2022 we expect some special measures to revive the economy and help the startup with growing financially. The major pointer to look forward to in the upcoming budget is ease in taxes which can help lessen up the burden from small and new businesses,” Amit Nigam, Executive Director and Chief Operating Officer of Bankit, a financial services venture.

For food processing start-up Meatigo founder Siddhant Wangdi, the budget should simplify policies and help streamline supply networks for companies dealing with fresh processed and ready-to-eat meat.

“We hope that our government extends additional support towards our industry in terms of investment, expansion, and transformation apart from the policies,” Wangdi said.

Clean energy venture Oorjan Cleantech has expectations from the government in facilitating access to low-cost financing to ensure hassle-free adoption of alternate energy.

“Charges pertaining to open access projects needs to be rationalised and approval process streamlined for easier implementation,” Gautam Das, co-founder and CEO of Oorjan Cleantech Private Limited said.

Food and Beverages sector venture Wat-a-Burger wants the government to re-introduce input tax credits for the sector that suffered a major blow due to the Covid-19 pandemic.

“I expect the budget to provide the sector with smooth compliance and regulatory procedures and credit flow streams to accelerate the recovery,” said Farman Beig, founder and CEO of Wat-a-Burger, a dynamic burger joint.