Budget 2023- What Startups Require In Terms of Tax Exemptions, Ease of FDI, Minimized Regulatory Burden

Indian startups are beginning to feel the heat. Access to bottomless piles of money was provided to the earlier movers which led to sky high valuations. However, the funding tap has been turned off since then, dropping by 33 percent in 2022, according to a report by PwC India which was released on 16^th January.

In order to help startups with the funding, the government has a lot of programmes, with wider fiscal support, incentives, and tax relaxations being sought by the newcomers as a big challenge is posed by rising inflation and interest rates.

“Ease of FDI (foreign direct investment) into India for startups should be looked into. Tax relaxation for startup employees would help us by leap and bounds,” said Mehul Jindal, CEO, and co-founder of BharatX, a fintech company which was launched in 2019.

Expanding the issues faced by the running product-based startups, 1Beginner Systems, ‘ pointed out by Kapadi that the high taxes was enforced by the GST, shrinking margins for startups that are still making up for the losses which were suffered during the pandemic.

A common platform for collaboration is included in other ideas, for helping latest startups with planning, research and development, besides validating new ideas.

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