Government action plan for new ventures will have a significant impact on driving enthusiasm among aspiring entrepreneurs to start their businesses without worrying too much about regulations and taxation, according to promising startup founders.
Startups across the country lauded the efforts to promote the entrepreneurial spirit in the country and said action plan unveiled today reflects a better understanding by the government of the ecosystem.
Flipkart co-founder Sachin Bansal said the intent of the government is right.
"There is a greater understanding of the startup ecosystem. They (startups) will benefit a lot from the incentives, tax benefits. To what extent is something that will have to be seen," he told PTI.
Prime Minister Narendra Modi today unveiled a slew of incentives to boost start-up businesses, offering them a tax holiday and inspector raj-free regime for three years, capital gains tax exemption and Rs 10,000 crore corpus to fund them.
"This is way beyond our expectation. Its like a budget on steroids... Start ups don't require money from government. The best thing is that they have removed tax, inspector visits which were cumbersome. Also, bringing start ups to mainstream with the awards is an incredible effort," Paytm founder Vijay Shekhar Sharma said.
India, which has the third-largest number of start-ups globally, will allow a 20 per cent tax on capital gains made on investments by entrepreneurs after selling own assets.
Besides, the credit guarantee fund for startups would help flow of venture debt from the banking system to startups by standing guarantee against risks.
Practo founder and CEO Shashank ND said the move will benefit entrepreneurs significantly as they can get capital without letting go of equity.
Deep Kalra, founders of one of India's earliest tech startups, Makemytrip, said he was impressed that the government is not only talking about startups but has taken positive steps to support the ecosystem.
"I think the Rs 10,000 crore fund is fantastic, capital gains and no compliance, that will be really helpful to those in the manufacturing sector," he added.
Faster exit was again a breather for many startup who again feel morally down with their failures. It will not be late when india will become world's largest startup hub, Myheera.Com founder and Director Puja Bansal said.
