Budget 2019: E-verification mechanism will encourage start-up ecosystem: Saurabh Srivastava

Finance Minister Nirmala Sitharaman presented her maiden budget in the Lok Sabha today, with the view to improve medium term sustainable growth potential. The Finance Minister elaborated that the Indian economy will grow to become a 3 trillion dollar economy in the current year and will reach the vision of Prime Minister to become 5 trillion dollar economy in the next five years. In reaction to the Budget 2019, a few reactions are given below:

1. Saurabh Srivastava, Chairman & Co-Founder, Indian Angel Network

"The measures proposed by the Hon'ble finance minister in the Union Budget 2019 today, regarding the Indian start-up ecosystem are extremely encouraging. Regarding Angel tax, start-ups and investors who file requisite declarations will no longer be subjected to any kind of scrutiny with respect to the valuation of share premium. The introduction of the e-verification mechanism for the same is also a welcome step.

With this, FM Nirmala Sitharaman has addressed the regulatory elements that currently harass both start-ups and angel investors. A robust implementation of the proposed measures should eliminate virtually all the issues plaguing the angel investment landscape. The alleviation of regulatory friction has opened the way for the smooth progress of the country’s start-up ecosystem This will allow us to not only meet but exceed the target of 50,000 stated by The President, create millions of jobs, contribute to economic growth and find innovative solutions to the country’s many challenges in affordable health care, education, agricultural productivity, clean energy, water and sanitation."  

2. Raman Roy, Founder, Quatrro & Co-Founder, Indian Angel Network

“The e-verification mechanism proposed by FM Nirmala Sitharaman is an enabling one for both start-ups and angel investors. This, coupled with the exclusion of start-ups and investors who file requisite declarations from tax scrutiny, is an uplifting step taken by the Government. The ‘requisite declaration’ clause, though, requires a closer inspection. In any case, the overall development looks extremely optimistic for the Indian start-up ecosystem.”
 
3. Ishan Gupta, MD, Udacity India

"The Union Budget presented by the Hon’ble FM Nirmala Sitharaman today contained numerous proposals aimed at elevating the country’s educational and job landscape. We are pleased to observe that the government has recognized India Inc. as a key job creator while showing a cognizance of the tech-led transformations occurring in the space. As such, the government’s focus on encouraging skill development and training in various tech-centric areas including Artificial Intelligence, Big Data, Robotics, etc. is an extremely welcome step. The field of AI and affiliated technologies is highly valued across the globe. The proposed measures will ensure that the next generation of students is job-ready for the high-value jobs that are rapidly emerging both in India and abroad."  

4. Anil Nagar, Founder and CEO, Adda247

"We welcome this year's Union Budget, which, we believe, has struck all the right chords in every field that is crucial for our economy and the national market. The Government has a positive outlook towards the betterment of education system in India. Considering the National Education Policy which will focus on higher education is a brilliant step towards the betterment of the education sector. Also, the Government focusing on research and innovation will lead to progress in the country and rise to various start-ups. We are also very positive with regards to India's startup growth where India has become the 2nd the largest hub for startups with our youth turning into job creators from seekers. Promoting the concept of 'Make in India' and encouraging the concept of startups and proposing a method to establish and create awareness within the nation will be a good starting point. Having the name of 3 institutions in the list of 200 world university ranking is an achievement in itself."  

5. Saahil Goel, CEO & Cofounder, Shiprocket

"This year's Union Budget is highly appreciated since it has spearheaded targeted reforms for every sector which is critical to our country and the national market. For the MSME sector, the Government has proposed quick loans up to Rs. 1 crore. This will help with financial inclusion of Indian MSMEs and help grow the country's overall GDP and boost employment. The government has, moreover, proposed a single-window platform, which will help Indian sellers to file their bills and make unified payments. Another key takeaway from the Union Budget is the launch of pension scheme for shopkeepers and traders having income less than Rs. 1.5 crore. This will provide them with financial security and drive superior empowerment of the entire MSME segment.