Post-Budget quote from Founder & CEO of Justeat.com Ritesh Dwivedy:
Budget 2014 is a positive, forward looking one. In last couple of years, Indian economy was ailing and regressing to our pre-liberalization period of “Hindu rate of growth” (below 5%). To get this on track of 7-8% GDP growth, steps like clarity on retrospective tax and increasing FDI limits in insurance/defence sectors are just what the doctor prescribed. Startups are part of the bigger Indian economy and if Indian economy keeps growing at a good rate, all the companies – MNCs and startups – will have easier access to funds.
Startup focused pronouncements like a Rs 10,000 crore startup fund sound promising. But, much will depend on its implementation. Steps like service tax on online and mobile marketing are going to hurt the internet and online start-up companies in short term. But, I see this in the context of India having one of the lowest tax to GDP ratio, an anomaly that budget 2014 recognizes and intends to correct.