MY SUPPOSITION ON UPCOMING UNION BUDGET 2016 INDIA ON 29/2/2016, AT TERM OF FINANCE MINSITER - ARUN JAITLEY.

The government has taken significant strides to revive the economy, and a job well begun but needs a lot more to be done. Union Budget 2016-17 presents a golden opportunity for Finance Minister Arun Jaitley to put in place medium and short-term wins to take the positive momentum and sentiment forward. Indian markets have emerged as an investment opportunity overseas in a despondent global environment & volatility has been effected in India as well. Investors aren't guarded and domestic stock markets are feeling fragile.

The opportunities in addition, with an introduction to budget 2016 would be that India should follow the Singapore model of start-ups to promote young entrepreneurs & stretch upon international business environment outfit to find good tax transparency & limit political interference with no bureaucratic hurdles, rules & regulations become supportive as start-up programs introduced in Singapore.

 A new era of capitalize trades with briefing of flagship schemes launched by the government, such as Make in India, Skill India, StartUp India, Jan Dhan Yojana and Mudra Yojana, which are been planted to create a dimension of Industrial outbreak would create positive momentum & India has more than 19,000 technology-enabled startups, led by consumer Internet and financial services startups, the report said. Total funding for Indian venture capital-backed companies topped $12 billion (Rs 82,500 crore) across more than 1,220 deals in the past two years, with $7.3 billion invested in over 880 deals in 2015 alone, according to startup data aggregator Tracxn. ,

Hence, to create a proper ecosystem the government is likely to come up with more incentives for rising entrepreneurs in the upcoming Budget on the lines of Singapore.

Recently, government announced a work plan for start-ups,wherein exemption of capital gain tax is awarded. Therefore, exemption comes to those who invest in funds recognized by government. My concern is whether possibilities to reap benefits by entrepreneurs with listed or unlisted start-ups by the mode of investments is justified by proper actions with aspects of growth.  

While India's startup ecosystem continues to develop at a rapid pace, the exit options for risk capital investors, who have poured in billions of dollars backing home-grown ventures may remain bleak if not prescribed or cured with prominent action in future, requires government to be clear in it's ideologies for Start-ups. 

PM Narendra Modi has attempted to boost start-up businesses, offering them a tax holiday and inspector Raj-free regime for three years, capital gains tax exemption and Rs 10,000cr to fund them. The government had also announced a self-certification scheme and environment laws and said there will be no inspection during the first three years of launch of the venture which adds to promote young minds of the nation. 

If possible, the Government may take few steps to further associate the Service Tax rates with the expected tax rates under the GST regime. The Government should, however, keep in mind the adverse impact of any increase in the Service Tax rate on start-ups and it may also be disadvantageous. Further, in this Budget, the Government should also lay down the clear road map for the introduction of GST in India with a goal to assign faith in tax systems which has effects on financial markets & fiscal deficit. As GST- Goods & Services Tax in the biggest indirect taxes reform since 1947 and it has potential to lead the economic integration of India.

India is fortunate to have a rapidly developed healthy start-up ecosystem. It is now important to build on this strength to take Indian start-ups to the next level & GST shall be effective which may increase the GDP which is 7.5% at the moment & financial services sector shall be even more dominant (30%+ in Nifty) after GST & Start-ups which will take all sectors at different level. Current inflation shall not exceed more than 6 % peak and fiscal deficit would be taken to phase on the budget day.

It is hoped that Budget 2016 will bring in measures towards building a more start-up friendly India.