Top executives ET spoke with said that while focus on solving issues surrounding farming, logistics and intellectual property could have a positive impact on startups in the country in the long term, several pressing issues have been given a miss. “The budget was a step in the right direction, but these are just baby steps for an economy that needs giant leaps to become an innovation hub,” was the response of iSPIRT, a think tank for India’s software products companies. This mirrors the sentiment of at least 10 other top executives across roles in the ecosystem.

Publication: The Economic Times

Date: February 3, 2020

Amazon India and Flipkart are studying the Budget proposal on levy of one per cent TDS, and may reach out to the government for clarifications. “We are studying the details, and will reach out to the government for clarifications. We hope the tax regime is simple and uniform so that millions of small and medium businesses can go online, digitise their operations and continue to contribute to growing the economy,” an Amazon India spokesperson said in response to an e-mailed query. Flipkart also said it was going through the proposal. “We are studying the details, particularly how it impacts the MSMEs and Sellers on our marketplace platform.

Publication: The Economic Times

Date: February 3, 2020

The issue of preferential treatment given by e-commerce platforms to its own products or to related entities will be examined by the Competition Commission of India (CCI) on a case-to-case basis. This has implications for leading global e-commerce players against whom the CCI has begun an inquiry following complaints from small retailers. In a report titled ‘Market Study on E-Commerce in India’, the CCI says that “the issue of preferential treatment by e-commerce platforms to its own products, or its own/related entities, including factual establishment of the same and its effect on competition, is thus a matter of case-by-case determination by the Commission”.

Publication: ET Retail

Date: February 1, 2020

With each new year, there are plenty of expectations from the Narendra Modi government and the Union Budget 2020. While from 2014-2019, the focus of the government and successive finance ministers has been on boosting innovation and propping up the startup ecosystem, with the Union Budget 2020, it will shift to turning around the economy and beating the consumer spending decline, the flagging GDP growth and many ailing sectors such as auto, real estate, agriculture, energy and others. This year, the government is likely to see a shortfall of INR 2.5 Lakh Cr in the tax revenue, and the government has yet again pushed the RBI for another dividend boost.

Publication: Inc42

Date: February 1, 2020

The amendment will take effect from April 1, 2020. The government on Saturday proposed a new levy of one per cent TDS (tax deducted at source) on e-commerce transactions, a move that could increase burden on sellers on such platforms. “In order to widen and deepen the tax net by bringing participants of e-commerce (sellers) within tax net, it is proposed to insert a new section 194-O in the Act so as to provide for a new levy of TDS at the rate of 1%,” as per 2020-21 Budget documents.

Publication: The Hindu

Date: February 1, 2020

The Union Budget has always been a much-anticipated event. But this year, there is heightened interest as there are strong headwinds faced by the country with depressed consumer sentiment and lower tax collections. It remains to be seen how Union Finance Minister Nirmala Sitharaman, who will be presenting her second Budget since her appointment to the government last year, will steer the economy to a growth path. The Economic Survey, which was tabled in the Parliament on Friday, has projected an economic growth of 6-6.5 percent for the upcoming financial year, and this seems like a modest target, given the country aims to become a $5 trillion economy by 2024.

Publication: Yourstory

Date: February 1, 2020

The Indian angel investment landscape has changed significantly in the last decade. From less than 50 angel investors, the Indian startup ecosystem now has over 2K angel investors in this decade, as per DataLabs by Inc42’s estimates. The rise of angel investments has coincided with the increase in the number of startups, and often successful startup founders have turned angels while still at the helm as we have seen in the example of Snapdeal founders Kunal Bahl and Rohit Bansal, or after their exits as in the case of Sachin Bansal and Binny Bansal.

Publication: Inc 42

Date: January 31, 2020

In a bid to support further investments in the Indian startup ecosystem, union finance minister Nirmala Sitharaman proposed to set up an Investment Clearance Cell while presenting Union Budget 2020 today (February 1). The minister said that this “cell will provide “end-to-end” facilitation and support, including pre-investment advisory, information related to land banks and facilitate clearances at the centre and state level. This will work through a portal.” The minister emphasised that entrepreneurship has always been the strength of India. “Even today, young men and women have given up greener pastures elsewhere to contribute to India’s growth. They are risk-taking and come up with disruptive solutions to festering challenges,” the minister said.

Publication: Inc42

Date: February 1, 2020

Startups on Saturday welcomed the Budget proposal of relaxing ESOPs taxation, but said linking it to Section 80-IAC will limit its impact to a small section of startups. “The relaxation for ESOP taxation was welcome but linking it to Sec 80-IAC makes it meaningless as it impacts only a 100 odd startups. We had requested for this to apply to all DPIIT (Department for Promotion of Industry and Internal Trade) registered startups. I do hope they correct that urgently,” Indian Angel Network Chairman Saurabh Srivastava said in a statement.

Publication: Financial Express

Date: February 1, 2020

India is the third biggest startup ecosystem in the world. The budget proposal for the startups ecosystem, especially the one on tax on employees stock options (Esops), received a big thumbs up from the fledgling sector. The budget recommends a five-year tax holiday on Esopss, a 10- year tax exemption for startups with under-₹100 crore turnover and also talks of a seed fund to push new businesses. India is the third biggest startup ecosystem in the world and the government has been focused on pushing innovative startups through policy interventions for some years now.

Publication: The Hindu

Date: February 1, 2020

A ‘disappointed’ Ikea said it was evaluating the impact of the government’s move to raise import taxes on a host of products, from furniture to kitchenware, on its overall business in India. “Ikea is disappointed with the customs duty hike announced in the Union Budget, which impacts furniture and many other home furnishing categories,” said Peter Betzel, chief executive, Ikea India. Finance minister Nirmala Sitharaman announced raising custom duties on wooden furniture, tableware, kitchenware, and toys, among other products. The Swedish retailer currently imports about 75% of its products.

Publication: The Economic Times

Date: February 2, 2020

Last year saw two global behemoths – Walmart and Amazon – lock horns for dominance in Indian e-commerce market. Meanwhile, India’s largest conglomerate, Reliance Industries pulled its socks to enter e-commerce industry. However, the sector has been rocked by decline in consumer demand and uncertainty over policies. Now the sector is hoping for some good news to come out of Union Budget 2020-21. E-commerce players such as Amazon, Flipkart, Paytm and other will be listening closely as Finance Minister Nirmala Sitharaman presents her second Budget Speech shortly from now.

Publication: Business Today

Date: February 1, 2020