The resounding electoral triumph of PM Modi has affirmed India Inc’s and the startup ecosystem’s faith in their leader who can push for reforms, make India a strong digital economy and usher in positive changes to help India advance in R&D and technological innovations. We tap into the buzzing SME sector in India to gauge their sentiment and understand what they expect from Modi 2.0 term, who won the second term after a hard-fought re-election campaign. The startups industry is hopeful of the government’s commencement creating an ecosystem fruitful for them.
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.
“Now, with the BJP coming again, the startup community foresees a multi-fold growth of the entire gamut of the startup network with all the stakeholders leveraging the change in the ecosystem. With the vision of moving towards Smart Cities, Fintech, AgriTech and Smart Industries, the government of India has been a great support for startups,” he said.
As a startup, the community expects a very smooth and feasible ecosystem from the coming government, so that they can run their business without any administrative obstacles. They also believe that the government should include regulations that will drive organizations to digitize key logistics and supply chain processes. For instance, by mandating digitalization of certain key accounting, billing and logistics processes the government can ensure greater levels of compliance, at the same time organisations can improve efficiency.
Apart from that, the NDA II should look at creating an ecosystem which should focus more technology enabled solutions not just for metro cities but also in tier-2/3 cities to educate people on the new developments. The Modi government being pro-tech is a positive sign towards New Bharath.
NaMO To Take India Forward
Technology plays a major role in raising productivity and innovation. It is an important driver for the country’s economic growth and social development. With the government expected to push more on the impact of technologies like AI, IoT, data science and analytics network India is definitely going to benefit. Digitization and faster web will also continue to encourage the technology industry in India. Implementing these dealings can also improve access to data and will enable India’s transformation into a data-driven economy.