“Start-ups” and “entrepreneurship” have definitely been the buzzwords in the Narendra Modi government as these words have found special mentions in the last two consecutive budgets. Finance Minister Arun Jaitley has allocated 1,000 crore to establish a mechanism to be known as SETU (Self-Employment and Talent Utilisation).
The $146 billion Indian information technology (IT) industry found the right space of recognition in the Union Budget for 2015-16 with finance minister Arun Jaitley applauding the role played by over 3,000 start-ups, a segment which is expected to be next flag bearer of growth for the sector.
If the big idea of Budget 2014, announced on 10 July, was clearly start-ups, the Bharatiya Janata Party-led National Democratic Alliance government took it a step further by announcing on Saturday an allocation of Rs.1,000 crore to enable information technology (IT) start-ups, create additional funding avenues for small companies to raise money and, in turn, generate more employment.
Months after e-commerce major Flipkart raised $1.9 billion (about Rs 11,800 crore) in three rounds of funding in 2014, the Bengaluru-based company is again understood to be in talks to raise at least $500 million.
The Modi-led Government will present its first full Union Budget on February 28. With the promise that the new government would put technology in the forefront, the Indian IT industry has pinned hopes on the Modi government to push reforms and policies that will bring stability to the sector and maximize growth.
Through its landmark initiatives such as ‘Digital India’ and ‘Make In India’, the Indian government has demonstrated the importance of digital technologies for industries to sustain and grow. In the Union budget 2015-16, IT industry expects the finance minister to go a step ahead, and introduce measures that will enable businesses drive digital initiatives and sustain long-term innovations in the country.