With Budget 2022 scheduled to be presented on February 1, Indian startups are hoping that the Finance Minister will announce a host of measures to help the sector come out of the uncertainties caused by the Covid-19 pandemic, particularly in the background of Prime Minister Narendra Modi's recent announcement to celebrate January 16 as National Startup Day with an objective to enable Indian startups make it to the global stage.

According to experts, Budget 2022 should focus on rationalizing GST compliance and costs of compliance for startups. Measures in this direction will, no doubt, provide the sector a much-needed relief. It is pointed out that simplification as regards to higher direct tax and short-term and long-term capital gains can benefit the sector in a big way. Similarly, new tax relaxations, particularly to enable spending on innovation and ease-of-doing business are widely expected.

Besides, with an increasing number of young entrepreneurs entering the startup ecosystem, it is widely expected that the upcoming Budget should introduce some strong measures for easy access of government resources, funds and capital for the sector. Hassle-free loan disbursements, paper-less approvals and encouragement to adopt digital banking practices by providing adequate incentives can go a long way in pushing the entrepreneurship ecosystem in the country.

In the last few years, the Indian startup base has continued to witness steady growth, and according to an estimate the country is home to 81 unicorns as of now, of which 43 unicorns with a total valuation of $89 billion emerged just last year. Also, it is expected that we may add as many as 45 startup unicorns in the next 12-18 months. At this crucial junction, a startup-friendly Budget, which can catapult the sector further, is eagerly awaited.

I invite your opinions.