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.
The biggest boost for the Indian start-ups in the Budget has come from the proposal to reduce the tax on R&D, innovation from 25% to 10%. As Sanchit Vir Gogia, chief analyst and CEO, Greyhound Research, said, “We believe that the finance minister’s proposal to decrease the rate of tax on payments by way of royalty and fees for technical services to non-residents from 25% to 10% is a win-win situation for both MNCs and start-ups in India. This will be a growth driver for start-ups and will help promote entrepreneurship in the country and create more jobs rather than being job seekers.”
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