Startup Speak for Interim Budget: Incentives for Fintech, Make in India

Startup founders seek incentive push for segments like fintech, health-tech and consumer wearables to drive growth across the sectors, and the larger startup spectrum.

Ahead of the Interim Budget to be presented by Finance Minister Nirmala Sitharaman on February 1, the sector sought support in the form of Production-Linked Incentive scheme (PLI) for self-reliance.

Fintech Foray

Bipin Preet Singh, Co-founder and CEO at digital banking platform MobiKwik said he foresees incentives for fintechs that provide lending solutions beyond Tier 2 & 3 cities. 

“We expect the budget to provide incentives that encourage fintechs to drive further innovations for other aspects of banking like credit, investments, savings and advisory.”

He also placed faith in the growth of digital lending, especially for small ticket-size loans with the proper checks and balances in place to protect borrowers.

Simpler Tax

Harsimarbir Singh, co-founder of healthtech platform Pristyn Care said the government should focus on introducing a new and simplified tax and regulatory framework along with ease of funds and regulatory relaxations to boost entrepreneurship in the nation. 

“We suggest innovative strategies to incentivise research and development, such as tax exemptions or credits for businesses that invest in state-of-the-art equipment that improves telemedicine, diagnostics, and patient care,” Singh said.

PLI Push

He batted for extending the scope of the PLI scheme to incentivise the healthcare startup sector and generate employment. 

Additionally, he said the government should remove GST from diagnostic equipment and consumables. 

“All of these items attract GST, whereas, healthcare services including diagnostic services are exempted from GST. This creates an issue for healthcare services establishments as they are then compelled to increase the cost of the service and transfer it to the consumer,” he said.

R&D Relay

 Amit Khatri, Co-Founder of smartwatches and wearables brand Noise said a robust regulatory framework fortifying the startup ecosystem, and streamlined funds allocation, alongside strategic efforts in technological advancements, are crucial. 

“A dedicated push to boost R&D and technological opportunities within the country will be pivotal in shaping India’s economic landscape and enhancing global investment,” he added.

Khatri said he hopes for “continued support” from the government with the push for localising components as well, fostering an environment that encourages homegrown brands to lead India on the global stage, further accelerating growth and enhancing international prominence.

Innovations in AI

Akhilesh Shukla, CEO of TechShots said the interim budget poses an opportunity to maintain the much-needed push on India’s startup trajectory, fuelled by innovations in deep tech and emerging technologies. 

“India can be a beacon of GenAI development, at par with forerunners US and China. As a tech entrepreneur, I would vouch for simpler paperwork for startups during the selection for projects or services. This would save time and resources for them, and also encourage more participation from them,” he said.