Startups in Ggn buck up as govt eyes investment
Gurugram: Bengaluru may pride itself of being the startup capital of the country but it has tough competition in Gurugram that has over 2,000 startups. It is these startups that the government is now towards spurring the virtuous cycle of making the nation a 5 trillion dollar economy. Not only have the tax systems been eased, but the capital gains tax has also been eased for the companies.
Some of the key aspects of the budget included relaxation in conditions for carrying forward the set of losses and exemption of capital gains arising from the sale of residential houses that will be used in the investment in startups. It was also stated categorically that there will be an E-verification to resolve the issue of establishing identity and the source of funds. It was also mentioned that the government will provide an impetus to the investments in new technology.
The entrepreneurs in the city have stated that a solution to the challenges been faced by small business units will require a long term perspective than just providing tax deductions.
The entrepreneurs in Gurugram acknowledged that tax breaks will ensure short term benefits in their business operations, most of the entrepreneurs stated that access to capital is still a major challenge that needs to be addressed. "Most of the people who view the startups from outside may be delighted that India is the among the leading countries after USA and China in having startups but there is also a flip side to it. Today most of the startups are not being profitable and are facing difficulties. Unlike in USA and China accessibility to Capital in India is still quite cumbersome. Due to these challenges most of the startups falter in their operational process and focus less on innovations, "said Shobhit Bansal who runs an educational start-up firm in Gurugram.
"As an entrepreneur more than the tax deductions, I will see the opportunity that was provided by the Finance Minister for the startups in the field of agriculture, education and medicine. While these sectors may provide immense opportunities many may refrain in exploring these sectors because there is just no capital available to them," said Paramjeet Singh Chadha another startup operator in the city.
