During her Union Budget speech on February 1, Indian Finance Minister Nirmala Sitharaman did not address cryptocurrency or blockchain technology.
Many in the Indian crypto space were expecting for some reduction to the high taxation policy. In March 2022, India imposed a 30% tax on cryptocurrency profits and a 1% tax on all crypto transactions, hindering the growth of the industry.
Despite this, India is taking a leading role in the development of a global cryptocurrency regulatory framework through its current presidency in the G20 and there is hope for updates in the industry by the second quarter of 2023.
But, the Finance Minister did announce some measures to foster innovation, boost startups and FinTech in the country.
The Indian fintech industry is poised for growth and with the announcement of the Union Budget 2023-24, it looks like it is on the cusp of a revolution. With a focus on start-ups and digital infrastructure, the budget has set the tone for a thriving fintech industry in the coming years.
The measures taken by the government to foster innovation and ease of doing business have been warmly received by industry leaders who see this as a game-changer for the Indian start-up ecosystem.
The Union Budget 2023-24 has received a positive reaction from executives across the country, particularly in the start-up and fintech sectors. Mahin Gupta, the founder of Liminal, a digital wallet infrastructure platform, praised the government’s move to extend the tax holiday for start-ups to 10 years. This is expected to provide much-needed liquidity to growing start-ups and create a strong foundation for the next decade of innovation and job creation.
Shivam Thakral, CEO of BuyUcoin, India’s second longest-running crypto exchange, also welcomed the budget’s focus on making India a start-up capital of the world. The relaxation of the tax exemption limit is expected to increase the surplus funds for the common man and spark activity in various sectors, including digital assets.
Tarusha Mittal, COO and Co-founder of Dapps and UniFarm, was excited about the special focus on start-ups in the budget and the creation of an agriculture accelerator fund. The extension of Digi locker services to start-ups is expected to foster innovation in fintech services, while the simplification of KYC procedures will support the vision of a digital India.
Despite no mention of crypto and blockchain in the budget, the executives praised the government’s efforts to boost the start-up ecosystem and drive innovation across various sectors. The increased focus on infrastructure development and the simplification of compliances are expected to catalyze India’s economic growth and help the country achieve its target of a $5 trillion digital economy.
Overall, the Union Budget 2023-24 presents a positive outlook for the Indian economy, with a particular focus on start-ups and the fintech sector. The measures announced by the government to foster innovation, boost digital infrastructure and ease of doing business are expected to drive economic growth, job creation and make India a hub for innovation in the fintech space. The future looks bright for the Indian start-up ecosystem, and the industry is ready to take on the opportunities and challenges that lie ahead.
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