The Union Budget 2021 has a lot of encouraging initiatives for the startup ecosystem and meets some of the expectations of the Fintech industry.
We are happy that aspiring entrepreneurs and small businesses will benefit from the measures government has taken including broadening the definition of startups, simplifying regulations, providing income tax exemptions amongst others. We believe that these announcements will give the startup economy a boost.
Also, considering digital has changed the way transactions are done, Fintech is an important thread for financial inclusion, hence the creation of Fintech hub in GIFT ISFC will help companies step up their activity, grant them incentives, help them raise more funds, and create more collaboration opportunities for growth.
These initiatives are likely to create a strong foundation for cashless payments and pave a path for robust and sustainable growth for the industry. Besides, the move to provide financial incentive to promote the digital mode of payment will further give a boost to digital transaction.
Hence to summarize, the vision of the government is to be digital-first, promote the domestic industry and create adequate infrastructure and the budget lays down its foundation through focused policies in the same direction.
The author is Mandar Agashe, CMD, Sarvatra Technologies. Views are personal.