4 ways the Budget 2017 will benefit Startups - Mr. Sujayath Ali, Co-founder and CEO, Voonik
Abolition of FIPB: Government has signaled clear and loud that it is committed to liberalizing FDI policy to attract more more investments. Once the FDI reforms are announced, they will not only attract fresh funds into the current startup ecosystem, but will also promote new ventures in many untapped or undeserved sectors of economy.
Merchant enabled Aadhar Pay system: Digital payments play a pivotal role in ensuring consistent customer experience and increasing verified transactions. New merchant enabled Aadhar payments will bring many new consumers who do not have a debit card, into the digital payment environment. This will help startups improve their user identification and engagement.
Schemes to promote BHIM: Mobile penetration has still not peaked in the country. Even those who don't have Pan card, have a mobile phone. Also a large consumer base of housewives, teenagers, dependent parents etc who are currently transacting on cash, will now be able to use linked accounts for transactions. This will further help startups to increase prepaid contribution to overall transactions.
Income Tax rate for companies with turnover of over Rs 50 crore has been reduced to 25%: It will not impact tech startups and ecommerce companies directly. But it is a very positive move for the seller ecosystem. Lakhs of sellers are finding new avenues with the growing ecommerce industry in the country. These sellers will benefit from the government move and will be able to plough back money in further scaling up."