What start-ups expect from Budget of Modi 3.0 government

Here’s a snapshot of pre-budget expectations from start-ups ConveGenius (EdTech), Pakka Ltd (Sustainability and Manufacturing), Unstop (HR and Skill Development), ARENQ (Energy-Tech and EV), and 100X.VC (Venture Capital and Startups).

Jairaj Bhattacharya, Co-founder & Managing Director, ConveGenius (an ed-tech social enterprise):

“As we navigate the future of education, it is imperative that our budget invests strategically in Artificial Intelligence (AI) and cutting-edge research, especially for India 2 and India 3. AI’s adaptive learning capabilities and real-time feedback mechanisms can democratise education, ensuring that students and educators in semi-urban and rural areas receive unparalleled quality and support. Research-driven innovations will craft curricula and teaching methodologies tailored to these unique regions, addressing their specific challenges. By prioritizing AI and research, we can bridge educational divides, empower our youth, and prepare them to thrive in the 21st-century economy. This bold investment is essential for achieving equitable access and driving inclusive growth.”

Neetika Suryawanshi, CFO, at Pakka Ltd:

“India is eagerly waiting for the upcoming budget, especially the food packaging and manufacturing industry. We anticipate a significant allocation of funds to support critical areas, such as infrastructure development, technological advancements, and initiatives to address raw material price volatility. We are hoping for a stable and supportive policy framework to expect the targeted growth trajectory in 2024-25. The key focus areas during pre-budget discussion should include streamlining regulations, facilitating access to credit for business for all sizes, and fostering innovation in sustainable packaging solutions.”

Ankit Aggarwal, Founder and CEO, Unstop:

“We anticipate that talent acquisition and upskilling will be the most important aspects of the upcoming budget for the HR sector. Addressing the immediate need for a rapidly evolving job market, there should be a substantial increase in the budget allocation for skill development and entrepreneurship, ideally by 20-25%. With the digital economy’s projected contribution to India’s GDP estimated at 20% by 2025, investments must be specifically made in the digital skills training market. To enhance the learning experience and to leverage industry expertise, companies need to invest in public private partnerships (PPPs). Furthermore, allocating resources and providing equitable access to marginalized communities ensures inclusive growth.

The ever evolving tech sectors, specifically AI, machine learning and renewable energy demand developmental programs to focus on continuous skill development. In 2024, it is a requirement to build a tech-driven workforce proficient in emerging technologies anticipating a y-o-y growth of 30%. To cater to Tier 2 and Tier 3 cities, investment in skill development centers is essential. Subsequently, support training programs and micro-credentialing programs equip the youth for the growing economy. Soft skills like critical thinking, problem-solving, and communication are equally important. Lastly, an agenda on the budget should include a segment for incentivizing companies to bridge the gap between industry requirements and the existing talent pool. It can be achieved by providing job training and offering apprenticeship programs. Constant upskilling and reskilling initiatives will keep the workforce relevant predominantly in sectors undergoing rapid technological changes. This approach promises to enhance the workforce quality all the while fostering innovation and inclusivity in India’s economic growth.”

Jitendra Patil, Managing Director, ARENQ:

“We are excited about the upcoming budget and the new FAME 3 subsidy. The growth of the electric vehicle industry relies heavily on government support and incentives that encourage innovation and wider adoption. We’re hoping to see significant funds directed toward expanding EV infrastructure, like more charging stations, and incentives for battery technology research and development. The FAME 3 subsidy should help make EVs more affordable for everyone, promoting a greener future for our nation. We have high hopes for policies that will speed up the shift to sustainable transportation, support domestic manufacturing, create jobs, and strengthen the economy. With strategic investments and solid support, we can build a cleaner, more sustainable future together.”

Yagnesh Sanghrajka, Founder and CFO, 100X.VC:

Parity in taxation of cap gains from listed and unlisted shares
Discontinuance of Taxing ESOPs on exercise. Tax should be levied on the Sale of Shares issued in ESOP.
Relaxation in regulations for outbound investment by AIFs up to a threshold of $200,000 per year
Tax Incentives/ deductions for angel investors for investment in startups in the year of investment. This will see a boost in early stage funding
Reduced or higher threshold GST rates for startups to help nurture them and save them the burden of GST so early in their journey.