StartupTalky

Tag: Government Policies

  • National Startup Day: Industry Experts Share How Government Policies Can Empower India’s Startup Ecosystem

    India has the third-largest startup ecosystem in the world. Startups in our country are playing an extremely important role in driving innovation, creating jobs, and boosting economic growth. Recognising the importance of startups, Prime Minister Narendra Modi declared 16th January as National Startup Day to celebrate the entrepreneurial spirit and innovation shaping the nation’s future.

    While initiatives like Startup India have built a strong foundation, many industries still face unique challenges. These challenges need targeted policy interventions. This National Startup Day 2025, StartupTalky brings together insights from industry leaders, highlighting what they think could better support startups and drive growth in their industries. By addressing these needs, the government can help startups succeed in local and global markets.

    Electric Vehicle Industry Growth

    Nemin Vora, Founder and CEO of Odysse Electric Vehicles, shared, “We believe that EV sectors, especially the two-wheeler space, will continue to be a priority sector. This optimism comes from the shared goal of making transportation sustainable. We trust that the government will bring in incentives for both manufacturers and consumers, infrastructure development for EV charging, and policies to encourage research and development for the betterment of the EV space.

    To better support startups in particular, and drive growth in the electric vehicle industry, we believe that the following policy changes and implementations would be highly beneficial:

    • Regulatory Support and Streamlined Approvals: Simplifying and expediting regulatory approvals for electric vehicles, along with implementing clear and consistent policies around safety and certification standards, would help startups enter the market more efficiently.
    • Promoting Incentives toward a Large Consumer Base: Government-backed awareness campaigns and direct consumer incentives, such as FAME-II subsidies or tax rebates for electric vehicle purchases instead of PLIs, would drive demand and encourage consumers to transition to electric mobility.
    • Access to Financing and Grants: Providing easier access to financial support through low-interest loans, grants, and venture capital funding for electric vehicle startups would enable companies to scale faster, invest in technology, and expand production capacities.
    • Reduced Taxes and Import Duties on EV Components: Lowering taxes and import duties on key electric vehicle components would make it more affordable for startups to produce electric vehicles domestically, which in turn would lower the overall cost of electric mobility.

    These strategic policy changes would not only create a conducive environment for electric vehicle startups but also drive industry-wide growth, accelerate the transition to sustainable mobility, and help India meet its environmental goals.”

    Driving India’s EV Growth: Focus on Battery Reuse, Funding, and Skilling
    As EVs dominate the decade, overcoming challenges in battery recycling, infrastructure, funding, and talent upskilling is crucial for India’s sustainable mobility sector to thrive.
    StartupTalkyPrithvi Durai

    Cybersecurity Industry Growth

    Srinivas Shekar, Co-Founder and CEO of Pantherun Technologies highlighted a few key areas that the government should focus on to support startups and boost growth in cybersecurity:

    • Investing in AI-driven cybersecurity solutions can help tackle the growing threat of sophisticated cyberattacks.
    • Encouraging collaboration between public and private sectors and promoting innovation in homegrown technologies will also make a big difference.
    • Providing tax breaks for companies developing advanced cybersecurity tools and creating skill development programs to train cybersecurity professionals can strengthen the industry.
    • Expanding CERT-In’s resources and improving strategies to handle international cyber threats are equally important.

    These steps will create an environment where startups can innovate, grow, and contribute to building a safer digital future.

    Simplifying Fintech Regulations for Healthcare Financing

    Sahil Lakshmanan, Chief Business Officer of CarePal Money stated that to better support startups, the government could:

    • Simplify regulatory processes for fintech startups, particularly around healthcare financing and patient data security.
    • Incentivize partnerships between startups and public hospitals to ensure widespread access to innovative financial solutions.

    Logistics Industry Innovation and Growth

    Anshul Jain, Co-founder and CTO of Roadcast, highlighted the impact of government policies like the Startup India Seed Fund Scheme in supporting startups. To further drive growth in the logistics sector, he suggested several measures that the government could consider:

    • Tax Benefits for R&D: Offering tax credits or subsidies for startups investing in AI, IoT, and other innovative technologies would encourage more technological advancements in the logistics space. 
    • Improved Connectivity: Enhancing road, rail, and port connectivity would streamline supply chains, benefiting both logistics companies and customers. 
    • Green Logistics Policies: Financial incentives for adopting fuel-efficient and sustainable practices could help companies reduce their environmental footprint. 
    • Startup Tax Holidays: Extending tax holidays for early-stage startups would ease cash flow pressures and help businesses scale faster. 
    • Skill Development Programs: Launching initiatives to train workers in AI, IoT, and supply chain management would ensure a skilled workforce to support growth in the sector. 
    • Easier Access to Credit: Streamlining access to low-interest loans would provide logistics startups with the financial backing needed to expand and innovate.

    IT Sector Transformation and AI Product Development

    Neerja Kumar, Co-Founder and COO of Enalytix shared, “India’s IT sector has traditionally thrived on services, but in line with the Honourable Prime Minister’s Make in India vision, it is time to shift focus towards product development, particularly in emerging technologies like AI. To support this transformation, the government should introduce measures that foster innovation and global competitiveness in Indian IT products. Key initiatives could include creating a catalogue of Made-in-India products, particularly in AI, to enhance their visibility in international markets. Additionally, offering export incentives will encourage companies to scale their product offerings globally.”

    AI Adoption and Growth in Key Industries

    Animesh Samuel, Co-Founder and CEO of E42.ai emphasised that policies promoting AI adoption in sectors like BFSI, healthcare, and manufacturing can drive growth. Providing tax incentives for AI-led automation, establishing funding programs for R&D, and fostering public-private partnerships would encourage innovation. Support for enterprise automation platforms like E42 through government-backed AI centers could enhance accessibility for SMEs, enabling them to leverage advanced technologies without breaking the bank. Streamlining data compliance regulations for cloud-based and on-premises deployments can further ease AI implementation.

    Growth in Music-Tech Industry

    Gaurav Dagaonkar, Co-founder and CEO of Hoopr stated, “For music-tech startups like ours, initiatives that further simplify and strengthen intellectual property regulations, provide access to affordable capital, and incentivize innovation in areas like AI and music technology will be crucial. We need a policy framework that not only supports the growth of India’s INR 10,000 crore creator economy but also fosters responsible innovation and empowers creators to thrive.”

    ESOPs and Startup Growth

    Manish Panwar, Business Head at Xumane, suggested, “To better support startups and drive growth in the ESOP (Employee Stock Option Plan) and cap table management space in India, several changes or implementations in government policies could be considered:

    • Taxation Reforms for ESOPs
    • Incentivizing Investment in Startups
    • Supporting Employee Education and Awareness

    By implementing some of these changes, the government could create a more vibrant ecosystem where startups are incentivized to grow and reward their teams through ESOPs while also ensuring that both entrepreneurs and employees are well supported in managing their equity and wealth.”

    EdTech Industry and AI Integration

    Arpit Mittal, Founder and CEO of SpeakX, highlighted that the government has a unique opportunity to make technology a bridge, not a barrier. Policies that promote AI in education, like tax incentives for EdTech startups, could fuel innovation and bring personalized learning tools to underserved areas. Strengthening digital infrastructure—like affordable internet and devices for rural regions—is crucial. But it is not just about access; teachers also need support. Investment in training programs will ensure educators can use AI tools effectively in classrooms. Lastly, prioritizing data privacy regulations will build trust, so students and families feel secure using these platforms.

    Government Policies Lead Indian Startups to Thrive
    The government of India’s various initiatives and policies facilitate the growth of startups in India. Experts believe that government policies have made accessing capital easier.
    StartupTalkySayantan Mondal

    Personal Care Services Industry Support

    Reshbha Munjal, Co-Founder of KorinMi, said, “While many policies today aim to promote startups in India, the real impact lies in how easily they can be implemented. Whether it’s getting tax rebates or loan approvals, simplifying these processes would make them far more accessible and empower entrepreneurs to focus on innovating. When policy meets opportunity, startups can become the catalysts of the change we need.”

    Retail Industry Growth and Innovation

    Varun Tangri, Founder and CEO of QueueBuster, suggested that to support entrepreneurs and fuel growth, the government should prioritise infrastructure investments, particularly road networks, to improve connectivity and establish new retail hubs. Fast-tracking the National Retail Policy is critical for streamlining operations and providing a common foundation for business. Simplifying GST compliance, making finance more affordable, and encouraging tech usage would all help alleviate operational issues. Encouraging green retail activities through tax breaks or incentives would enhance sustainability. These steps will promote innovation, entrepreneurship, and a thriving startup environment, allowing enterprises to scale and contribute effectively to India’s economic growth.

    AI and Language Technology Industry Growth

    Tapan Barman, Co-founder and CEO of Mihup, emphasised the importance of dedicated support for AI and language technology startups, particularly those focused on multilingual AI and voice interfaces. He suggested several measures that the government could take to boost this sector:

    • Dedicated Support for AI and Language Technology: Establish grants and incentives specifically for startups working on multilingual AI and voice interfaces, recognizing the importance of these technologies for India’s diverse population.
    • Accessible Data Frameworks: Create secure, government-backed frameworks for startups to access anonymized datasets that represent India’s linguistic and phonetic diversity, which are critical for training voice AI systems.
    • Collaboration Initiatives: Facilitate partnerships between startups and public institutions, enabling real-world deployment of conversational intelligence platforms in sectors like healthcare, education, and public services.
    • Startup Tax Reforms: Provide tax relief for R&D-heavy startups and offer incentives for companies that are building indigenous AI solutions for global and local challenges.

    These measures, as highlighted by Barman, are key to supporting the growth of AI technologies in India.

    Plastic Recycling Industry and Policy Reform

    Rahul Nainani, CEO and Co-Founder of ReCircle, discussed the need for a balanced policy approach for plastic recycling that considers social justice, environmental preservation, and economic growth. He suggested that the government could support long-term growth in the industry through tax reforms and lower GST rates on recycled plastic products. Nainani said:

    “Higher taxes on the plastic industry could drive inflation, while technological innovation can help deliver better services and benefits to connected communities and the economy. For sustained industry growth, infrastructure support and digitization in plastics manufacturing are critical, as well as ensuring businesses comply with the government’s Extended Producer Responsibility (EPR) mandates under the Plastic Waste Management Rules of 2016.”

    He also highlighted that ClimaOne’s strategy of ethically recycled plastics aligns with these EPR regulations, which require producers to integrate 30% recycled content into their products by 2025, with the percentage increasing annually.

    Lubricant Industry Innovation and Growth

    Navkaran Singh Sethi, MD and Co-Founder of EnerG Lubricants, suggested that government policies could focus on several measures to support startups in the lubricant industry, including:

    To support startups in the lubricant industry, government policies could focus on:

    • R&D Tax Incentives: Offering tax breaks for innovation in high-performance additives and sustainability.
    • Access to Financing: Providing government-backed funding or low-interest loans to help startups scale.
    • Streamlined Regulations: Simplifying certification processes for meeting international standards and global market entry.
    • Technology Grants: Subsidizing startups adopting cutting-edge manufacturing technologies.
    • Workforce Development: Supporting educational and technical training programs to build a skilled workforce.

    These measures would drive innovation, accelerate growth, and help Indian startups become global leaders in the lubricant industry.

    Data Privacy and Ethics in Residential Tech

    San Banerjee, Co-Founder and CEO of ADDA, expressed concerns about unethical practices in the residential community tech industry, particularly regarding the misuse of data for advertising and other monetisation purposes. He emphasised the following points:

    • Data Privacy and Cybersecurity: Stricter guidelines around data privacy and ethics should be implemented to protect the interests of apartment owners and residents who use these platforms. ADDA’s model remains ad-free, and spam-free, and ensures zero risk for users.
    • Supporting Ethical Solutions: Policies that promote ethical practices would encourage serious solution providers to enter the market, fostering a safer and more reliable environment for users.

    Apparel Sourcing Industry Growth

    Abhishek Dua, CEO and Co-Founder of Showroom B2B, shared that to support startups and drive growth in the apparel sourcing industry, the government should focus on streamlining compliance regulations, making it easier for small manufacturers to join organised supply chains. Expanding affordable financing, such as low-interest loans, would help startups scale and manufacturers upgrade technology. Investments in logistics and infrastructure, like transportation and warehousing, would enhance supply chain efficiency. Grants for sustainable practices would encourage eco-friendly operations, aligning with global standards.

    Additionally, export incentives for startups working with compliant manufacturers could boost international competitiveness, while skill development programs focused on technology, compliance, and quality standards would uplift manufacturers, fostering a more efficient and scalable ecosystem.

    Workforce Development and Job Creation

    Nilesh Dungarwal, Co-founder and CEO of WorkIndia highlighted that policies like SEZ expansions can create jobs and incentivize the development of new capabilities. He believes that the government’s focus on upskilling and job creation is crucial. According to Nilesh:

    “Young people in India have a lot of potential, but to match talent with industry demands, focused skill development programs are required. By prioritizing entrepreneurship, workforce readiness, and a robust startup ecosystem, the government can unlock innovation, accelerate growth, and create sustainable opportunities across sectors, driving long-term economic transformation.”

    National Startup Day: Spotlight on Industries, Progress, and Future Visions
    Discover the growing startup ecosystem in India on National Startup Day. Explore progress, govt support, and a glimpse into the future of growth and innovation.
    StartupTalkyMuskaan Kapoor

  • Uttar Pradesh to Play Big Role to Make India 3rd Largest Economy by 2030

    Uttar Pradesh with an aim of becoming a $1 trillion economy is currently the fastest growing state-economy in the country. Investors in Uttar Pradesh are bridging credit gaps in the thriving MSME sector. The state will play a big role in making India the third-largest economy in the world.

    Uttar Pradesh is leading the growth of the Indian MSME sector with the highest number of MSMEs in India. The largest and most populous state boasts more than 96 lakh MSMEs, making the state one of the fastest-growing state-level economies in the country.

    President Draupadi Murmu, in her address at the inauguration of the first UP International Trade Show, stated that over 200 manufacturers from the state were displaying their products to more than 400 buyers from a total of 66 countries. The event provided a platform for local manufacturers and small businesses to showcase their products in the national and international markets.

    The President also mentioned that Uttar Pradesh, despite being a landlocked state, has experienced remarkable growth in exports, with the value increasing from around Rs 88,000 crore in 2017-18 to Rs 1,75,000 crore in 2022-23. She attributed this growth to the proactive steps taken by the state government to promote economic growth and attract investments.

    “Uttar Pradesh is now among the fastest growing state-level economies in the country due to simplification of the investment process, ease of doing business and acceleration in infrastructure development,” said Murmu.

    In the same event, Union Minister Narayan Rane stated that India is expected to become the third largest economy by 2030 and UP is going to play a major role in it. He also emphasized the necessity of enhancing citizens’ per capita income to address migration, underscoring the state’s goal of reaching a $1 trillion economy. He also highlighted the per capita income disparities between the United States and India to underscore the importance of economic growth in improving people’s quality of life. Using the instance of industrialization in his home state of Maharashtra, Rane pointed out that comprehensive research and analysis are vital to determine the suitable industries and their optimal locations within various areas or districts.

    Key Sectors for Investment in Uttar Pradesh
    Advice to MSMEs Attracting Investment in Uttar Pradesh

    Key Sectors for Investment in Uttar Pradesh

    Mr. Amit Tyagi, CEO, PayWorld highlighted key sectors that offer the most investment in Uttar Pradesh:

    1. Financial Inclusion: Uttar Pradesh, a populous state with a significant number of underserved population segments, is poised for improved financial inclusion. Fintech companies have a crucial role to play in achieving this by providing innovative and affordable financial products and services tailored to these segments.
    2. Agriculture: As a major agricultural hub in India, Uttar Pradesh offers substantial opportunities for fintech companies to revolutionize the agricultural sector. Fintech solutions, including crop insurance, agricultural financing, and supply chain management, can greatly benefit farmers and other stakeholders.
    3. Small Businesses: Uttar Pradesh is home to a multitude of small businesses, presenting fintech companies with the opportunity to offer a range of services. These services encompass digital payments, accounting software, and access to business loans, supporting the growth and success of these enterprises.

    The Uttar Pradesh government is actively promoting digital payments and fintech solutions, leading to an increasing demand for these services. Fintech companies can address this demand by providing solutions for government-to-citizen payments, tax processing, and subsidy distribution.

    Nevertheless, Indian MSMEs have faced a significant challenge in the form of limited access to credit within the market. To address this issue, both government agencies and non-governmental funding institutions throughout the country have made concerted efforts to facilitate easier access to capital.

    Mr Ameet Venkeshwar, CBO, LoanTap Financial Technologies, said that bridging the credit gap for MSMEs requires a combination of innovative products, customer-centric solutions, and collaboration between various financial institutions and businesses. Other than providing MSMEs loans, he said, “We have our own product called AfterPay Merchant by LoanTap, a dedicated credit solution for MSMEs tailored to accelerate business growth.”

    “We partner with large retailers to assist MSMEs, particularly small retail stores, in gaining easy access to funds through a revolving credit line. This support allows them to benefit from extended payment terms, bolstered working capital, and ensures a stable supply. Mostly the small retailers and Kirana stores are often underserved and this allows us to serve them moving more towards our vision of financial inclusion,” Mr Venkeshwar added.

    Mr Tyagi of PayWorld emphasized, “Our extensive network of merchant points provides MSMEs access to digital financial services, empowering them with digital payments, bank accounts, and e-wallets. Collaborations with financial institutions enable us to offer tailored micro-loans, addressing capital needs for UP’s MSMEs.”

    He stated that they are committed to innovation and the development of digital platforms. He mentioned that tailored products and financial awareness campaigns played a significant role in enhancing their commitment to UP’s economic growth. In a landscape where MSMEs sought credit solutions, Mr. Tyagi believed that PayWorld’s extensive reach and unwavering dedication to digital financial services could be transformative, propelling MSMEs toward prosperity and contributing significantly to the state’s development.

    Advice to MSMEs Attracting Investment in Uttar Pradesh

    Uttar Pradesh boasts a vibrant and flourishing MSME sector, which serves as the cornerstone of the state’s economy. These small and medium-sized enterprises contribute significantly to its GDP and generate millions of jobs. For MSMEs in Uttar Pradesh looking to invest in their growth, several key opportunities exist.

    1. Government Initiatives: To support MSMEs in the state, the state government has initiated various programs, including the One District One Product (ODOP) scheme and the Nivesh Mitra portal. These schemes offer financial and technical assistance to MSMEs, streamlining the process of raising investments and saving both time and money.
    2. PM Vishwakarma Yojana Scheme: The Pradhan Mantri Vishwakarma Kaushal Samman Yojana, a central government initiative, provides skill training to traditional artisans and craftsmen. MSMEs in Uttar Pradesh can leverage this scheme to train their employees, enhancing productivity and making their businesses more appealing to potential investors.
    3. Targeting the Export Market: The export market presents numerous opportunities for the state’s MSMEs, with the government actively promoting exports from the state. By tapping into government support and the growing export sector, MSMEs in UP can expand their operations and attract increased investment.
    4. Leveraging Fintech: Uttar Pradesh’s MSMEs can harness fintech solutions to attract investment and facilitate business growth. They can utilize online crowdfunding platforms to raise capital from a wide investor base. Furthermore, fintech platforms can automate accounting and financial reporting processes, enhancing their appeal to potential investors. Collaborating with fintech companies to develop innovative financial products and services is another avenue through which MSMEs in UP can pique investor interest.

    Mr. Venkeshwar also acknowledged that attracting investment can pose a challenge, but it is an attainable goal when the right strategy and approach are in place. Furthermore, with the sector’s growth on the rise, the outlook appears promising, particularly with new initiatives such as financial inclusion aimed at assisting the underserved sector in India.

    Union Minister Narayan Rane also mentioned that there are approximately 9.5 million MSMEs in the state, and when considering the entire country, there are around 63 million functional MSMEs. He stated that through the MSME sector in Uttar Pradesh, small businessmen and farmers have been finding employment opportunities, and they have been significant contributors to India’s growing economy.

    List of Successful Startups in Lucknow | Lucknow startups [Exhaustive List]
    These flourishing startups in Lucknow are a testimony to the fact that this city is transitioning from the city of ‘tehzeeb’ and ‘nazaakat’ to the ‘City of Startups’.
    AshwiniStartupTalky

  • Government Policies Lead Indian Startups to Thrive

    The government of India’s various initiatives and policies facilitate the growth of startups in India. Experts believe that government policies have made accessing capital easier.

    India is now a booming economy for startups to prosper. Much of the credit goes to the Government of India for taking suitable initiatives to make the country a safe home for Indian startups to thrive. The recently concluded G20 summit has promised to facilitate global collaboration and raise a whopping $1 trillion by 2030, hence, Indian startups can see the Sun shining bright for long enough to give them the space and time to “frost themselves”’.

    It doesn’t matter which sector your business is catering to, whether it’s fintech, SaaS, or prop-tech; government initiatives serve businesses as a whole. This provides them with the opportunity to grow and meet the needs of not only people in the metros but also those in Tier 2, Tier 3 cities, and smaller towns.

    Kanika Bali, Partner, Optimyze Finance LLP, stated that India’s startup ecosystem has been on an unprecedented growth trajectory, establishing itself as the third-largest startup hub globally. With over 99,000 DPIIT-recognized startups spread across 670 districts as of May 2023, India’s prowess in innovation and entrepreneurship is undeniable. This remarkable achievement is not confined to a single sector, with startups emerging in 56 diverse industrial sectors, showcasing the nation’s versatility and dynamism.

    Ms. Bali also added that one of the standout achievements of government policies is the exponential growth in funding, reflecting investor confidence in India’s startups. Over the period from 2015 to 2022, there has been a staggering 15-fold increase in total startup funding. This infusion of capital has catalyzed innovation, enabling startups to scale and address critical challenges across various sectors.

    Jitender Ahlawat, Founder and Managing Partner, of HJA & Associates, said, “The legal environment for businesses has been greatly simplified thanks in part to the ‘Startup India’ program, which was introduced in 2016. It provides tax breaks for three consecutive financial years out of its first ten years since inception in order to lessen the financial strain on new startups and increase their appeal to investors. The program also makes it simpler for businesses to get cash by facilitating access to funds through programs like the Fund of Funds for Businesses (FoF) and credit guarantee schemes.”

    StartupTalky interacted with entrepreneurs and experts from a range of industries and the government has been praised for its various startup-friendly initiatives and policies.

    Prop-tech
    Hardware-tech
    Fashion
    Lending-tech
    SaaS
    Fintech
    Recommendations to the Government

    Prop-tech

    Mr. Saurabh Vohara, Founder and CEO, of ALYF, praised the government initiatives like Startup India and Digital India as these initiatives have given investors the trust and confidence to invest in startups.

    He said, “The government’s supportive policies have been instrumental in ALYF’s journey to democratize holiday home ownership in India. Initiatives like Startup India and Digital India have given investors trust and confidence to back startups like us who are trying to solve real estate challenges through technology and AI. We believe that further enhancements to government policies including tax incentives, streamlined approvals for new project launches, and joint research initiatives will definitely continue to foster innovation and drive economic growth in the real estate startup sector.”

    Dr. Nikhil Sikri, CEO and Co-founder, Zolostays, said, “The government’s decision to implement 12% GST on PG and student housing for rates less than Rs 1,000 per night and 18% for others is a progressive move that promises to bring greater clarity and efficiency. We strongly believe that this step has enhanced compliance, reduced the prevalence of unscrupulous practices, and ultimately resulted in a more sustainable co-living and student housing ecosystem.”

    Moreover, he also mentioned that the government initiatives in research and startup incubation serve as the cornerstone of informed decision-making in the real estate sector. Through rigorous analysis and data-driven insights, the government has steered the course of housing policies, urban planning, and market regulations, ensuring affordability, sustainability, and economic stability. These initiatives have fostered equitable housing solutions.“We are committed to offer our patrons with high-quality, affordable co-living accommodations, and we are positive about the government regulations that will aid to further enhance an organized ecosystem,” Dr. Sikri added.

    Hardware-tech

    Pramod Kathuria, Founder and CEO, of Easiloan, mentioned that there needs to be a balance between support and oversight. He said, “To boost startup growth in India, government policies should focus on enhancing funding accessibility through grants and tax incentives, simplifying regulations, and promoting education and research. Favorable international trade agreements and entrepreneur-friendly visas should also be prioritized for global expansion. Striking a balance between support and oversight is key.”

    Fashion

    Ms.Varija Bajaj, Founder of Office & You, Lela, and Varija Design Studios, shares that the support provided by organizations like Startup India and Invest India has been truly remarkable. They have gone above and beyond in their efforts. The incentives for startups, the invaluable mentorship, and guidance on investments have been nothing short of brilliant.

    “I believe these initiatives have led to the establishment of numerous incubation centers and have transformed the mindset of individuals who previously might not have considered investing in startups,” she added.

    Lending-tech

    Mr. Bhavik Vasa, Founder and CEO, of GetVantage, while talking about the credit deficit in the Indian SME sector mentioned that the recent government allocation announced in the Budget 2023 would foster the growth of small businesses.

    He said, “In recent budget sessions, the government has allocated substantial capital for priority sector lending and introduced corporate guarantee schemes to fuel the growth of small businesses. There is a strong awareness of the need to support these sectors to achieve the goal of becoming a $5 trillion economy. This involves identifying the importance of these sectors at the government and Finance Ministry levels, along with the active participation of industry players. The government’s efforts are aligning well with the growing importance of small businesses and startups in India, and there is a significant amount of capital earmarked for these sectors.”

    GetVantage’s Bhavik Vasa Unveils $500 Billion Opportunity to Tackle SME Credit Deficit
    Discover how GetVantage bridges the SME credit gap and simplifies venture finance with Bhavik Vasa’s insights, illuminating the dynamic financial landscape.
    Sayantan MondalStartupTalky

    SaaS

    Mr. Rajarshi Bhattacharyya, Chairman and Managing Director of ProcessIT Global, said. “If your startup is performing well for three years, you become eligible for tax exemptions. It can hardly get better than this. The ecosystem is designed to support your growth. The government, in collaboration with organizations like NASSCOM, organizes various mentorship programs under the Startup India initiative, providing people with invaluable guidance and support.”

    He also mentioned that among the top 15 cities globally for startups, three of them are in India – Bangalore, Mumbai, and Delhi NCR. This is a testament to the encouragement the government provides for individuals to become entrepreneurs, break free from mundane jobs, and pursue innovative ideas. Access to funding is available, and Indians are known for their brilliant minds. Mr Bhattacharyya also added that the policies have been established to enable startup companies to participate in large government tenders without needing to provide Earnest Money Deposits (EMDs). Membership in the Startup India scheme takes care of your credentials, eliminating the need for Pre-Qualification (PQ) criteria.

    Fintech

    However, in order to further boost startup growth in India, Ajit Thomas, Co-founder and CMO, of Cavli Wireless, said that the government should streamline regulatory processes, making it easier for startups to register and operate.

    “Reducing bureaucratic red tape can expedite business launches. Additionally, tax incentives for early-stage startups can alleviate financial pressures. Enhancing digital infrastructure, especially in Tier-2 and Tier-3 cities, will democratize entrepreneurial opportunities. Lastly, fostering stronger academia-industry linkages can spur innovation, while dedicated startup hubs can facilitate mentorship and networking. These changes can create a more conducive environment for startups to thrive and innovate,” he added.

    Ms. Bali said, “One of the standout achievements is the exponential growth in funding, reflecting investor confidence in India’s startups. Over the period from 2015 to 2022, there has been a staggering 15-fold increase in total startup funding. This infusion of capital has catalyzed innovation, enabling startups to scale and address critical challenges across various sectors.”

    “The startup landscape in India has become synonymous with innovation, disruption, and boundless potential. The Indian government has paved the way for startups to thrive. These schemes provide financial support, access to resources, and opportunities for growth,” she added.

    Recommendations to the Government

    However, Mr. Ahlawat highlighted some specific changes to the government policies to boost the growth of startups. These include simplifying business registration processes, expanding tax incentives, improving access to finance, enhancing intellectual property protection, expanding research and development grants, investing in education and training, expanding startup incubators and accelerators, facilitating government procurement, extending support programs for SMEs, forming international collaboration partnerships, ensuring regulatory clarity, developing comprehensive data privacy regulations, introducing incentives for startups focusing on sustainability and green technologies, facilitating exit strategies, and expanding e-governance initiatives.

    Garima Mitra, Co-Founder, of Treelife, also reminded that it is essential that India continues to streamline regulatory processes, improve access to capital, and enhance its education system to fully harness its innovation potential and sustain long-term economic growth.

    As we look ahead, it is imperative for the government to continue its proactive approach, streamlining regulations, enhancing infrastructure, and strengthening academia-industry collaborations to ensure that the Indian startup landscape continues to shine brightly on the global stage. The future indeed holds boundless possibilities for innovation, growth, and economic prosperity in India’s startup ecosystem.