Startup of some solid reform

BUDGET 2019

BY AMOL GULHANE, Co-founder/director, Robolab Technologies

► BUDGET RATING: 7/10

Efforts to drive futuristic tech and focus on world-class education may boost entrepreneurship; implementation awaited

As a tech and education startup, we were impressed with the Union Budget 2019’s new National Policy on Education (NPE) and its focus on establishing world-class institutions. This is necessary as there is a mismatch in the quality of education provided in India as compared to developed countries. If the quality of education improves, the startup ecosystem would stand to attract a skilled workforce.

I also welcome the government’s decision to start a TV channel on Doordarshan solely for startups. However, they should only concentrate on presenting quality stories related to entrepreneurial success, struggle and failure. Entrepreneurs, even in rural parts of the country, could benefit from such an initiative. They will surely learn from the stories of entrepreneurs, and they will also get to gather information on how to start their own venture.

Another positive aspect of the budget is the proposal to eliminate angel tax scrutiny for startups and investors. The angel tax scrutiny usually takes place after a startup has established itself — which is a harrowing process for both startups and angel investors. But, I think that it would take some time for this policy to be put into effect.

I was again fairly impressed with the budget’s effort to drive technologies such as the Internet of Things (IoT), artificial intelligence (AI) and robotics. I think the government has allocated some funds for establishing centres of excellence across the country, where students would get to learn about emerging technologies like IoT and AI. Such reform will greatly benefit students.

The government has proposed to set up 80 business incubators and 20 technology incubators in 2019-20, which according to Union finance minister Nirmala Sitharaman will help create 75,000 skilled entrepreneurs in the agricultural industry sectors. I personally believe that this is a far-fetched proposal. It is not enough to put such a policy in effect on paper — it must be implemented as well.

The proposal to provide startups with innovation funding is welcome, too. The reality, however, is that most entrepreneurs will not benefit from this move because there is too much bureaucracy involved in the process of availing such a loan.