As the Narendra Modi-led BJP government is in command, the business owners especially tech firms are keeping high hopes from upcoming Union Budget 2015-16 which is due in this month. Finance Minister Arun Jaitley has already asked all the ministries to submit their recommendations on the same.
Earlier in last year, Prime Minister Narendra Modi had announced his ambitious Digital India campaign. Post which startups and established companies in the technology and ecommerce space are excited. They all believe Budget 2015 will be the start of a new era of higher growth. However, for this finance minister has to take some concrete steps towards improving the ease of doing business in India.
Before we move further, Let’s point out the challenges faced by startups community and small businesses in India.
Multi-window clearance system – Venturing out your own business is not less than a war in India. You need to run around far too many offices and places for various clearances and approvals. Now, it’s high time to have single window system where all clearances can be obtained.
Taxation Issues – Different taxes like Minimum Alternate Tax (MAT), excise, service, octroi and VAT are the biggest barriers for smaller firms and startups. There are lot of complexities involved in taxation system for startups.
Ease of doing business – When it comes to doing business in India, entrepreneurs always take it as toughest job. According to the recent market reports, India has slipped further on the World Bank’s ‘Ease of Doing Business’ index, at 142 among 189 countries as on June 1 from 134 last year. The regulations related to running a business are really unfavorable for startups and needs an immediate overhaul.