Key takeaways
- PM Modi's electoral victory has strengthened the startup community's belief in his ability to drive reforms and technological advancements.
- The government has previously implemented supportive policies, including initiatives focused on funding and AI development.
- Startups are optimistic about the government’s commitment to creating a conducive ecosystem for innovation and growth.
- There is a growing expectation for the government to address challenges like the Angel Tax, which affects fundraising for startups.
AI-focused Initiatives Under NDA-I
In the last 5 years, the Modi government had several policies for the startups community in the country. The Government started initiatives like Fund of Funds (FFS) under SIDBI, women entrepreneurship and has had a sharp focus on Artificial Intelligence (AI). One of the most anticipated policies of the government is the Angel Tax which is levied when a privately held company raises funds at a rate higher than its fair valuation. The government this year had relaxed norms for companies that qualify as startups and can avail angel-tax breaks.India’s Startup Community On Modi Government 2.0
The startup community, in the space of technology, is looking forward to NDA II to bring about greater positive changes. There has also been a renewed interest by the government on artificial intelligence and fast tracking the Indian entrepreneurial journey to make inroads in this space. The community is also expecting a big boost for the Financial Inclusion and Fintech sector in the government’s second term. Gaurav Gupta, Co- Founder and COO at Navia Life Care, a health tech startup said that AI has the potential to double the size of our economy by 2025. Promotion of AI in different sectors collaborating the IT ministry and technology startups, through a strategic plan, is expected by the government. While initially, India’s start-up ecosystem was largely dominated by consumer-facing companies, B2B ventures are finally finding their feet now. India added 2,300 B2B start-ups in the last 5 years. Rashi Gupta, Co-founder & Chief Data Scientist from Rezo.AI said that a stable government at the centre will ensure the successful and speedy implementation of more than 150 schemes and policies that the BJP government introduced for the startups. She said that she appreciates NITI Aayog’s plan to create an institutional framework for artificial intelligence in the country. “We look forward to the next 5 years of the new government and are positive that it will continue its focus and support to the startup ecosystem; especially to give a push to adoption of AI in India,” she said. According to the CEO & Co-founder of Datacultr, Neel Juriasingani, in the past five years, the government has shown tremendous interest in the startup ecosystem of India and has made several policies to make it easier for entrepreneurs to launch new businesses and create jobs. Numerous startups have forayed into the various unexplored sectors and have given a new shape to the economy of India.
