Here's how startup founders, tech leaders reacted to Budget 2021

India's startup founders and tech executives gave big thumbs up to Union Budget 2021-22 presented by Finance Minister Nirmala Sitharaman on Monday.

"The move towards providing social security benefits for gig workers will add a much-needed safety net that will help this sector grow in a sustainable way and help the many millions that are a part of it," said Snapdeal co-founder Kunal Bahl.



Bahl also said that reducing the residency requirements for founders will allow talent to flow and boost the country's startup ecosystem.

"On the broader economic development front, there are many positives around an aggressive growth-driven approach with sizable investments in healthcare and infrastructure. Overall a budget that enables the economy to play on the front foot. Exciting times ahead for India," he added.

Ola Group chief executive Bhavish Aggarwal welcomed what he termed as "a progressive & growth-oriented budget"

"Measures under Atma Nirbhar Mission will create global champions in automobiles, financial services and technology & foster an environment where India becomes integral to global supply chains," Aggarwal said.


Zerodha founder Nithin Kamath listed out a few announcements that are expected to benefit retail traders directly.


Nasscom President Debjani Ghosh endorsed the startup-related measures in Budget 2021 and said the sector needs a few more changes for faster growth.


Kris Gopalakrishnan, chairman of Axilor Ventures and co-founder of Infosys, said that the private sector must allocate more money to fund research and match the government spending. During her budget speech, Sitharaman had said the government has allocated Rs 50,000 crore for National Research Foundation over five years, to ensure that the overall research ecosystem of the country is strengthened with focus on identified national-priority thrust areas.


Mapmygenome co-founder Anu Acharya said she was glad to see the emphasis on prevention and wellbeing and also endorsed the 137% increase in the healthcare budget this year.


After the government extended social security benefits to gig and platform workers, Udhyam Learning Foundation co-founder Mekin Maheshwari hoped that nano entrepreneurs and street vendors are also included in similar social security benefits.


Kotak Mahindra Bank chief executive Uday Kotak termed it as a "budget for growth with next-gen reforms".

"Specific reforms: disinvestment & monetization, opening up of insurance, cleanup plan for stressed assets. Sign of a self-confident India," he said.


Shefali Goradia, partner-business tax at Deloitte Touche Tohmatsu India, said startups have seen very marginal relief in the budget by way of extension of the sunset for tax holiday by one year.

“Startups and SMEs have been hit hard in the pandemic. They were hoping to get relief from MAT and extension of tax holiday from 3 to 5 years. There has also been an ask to let them carry forward tax losses even where there is a change in shareholding beyond 51%,” Goradia said. "No change in ESOP taxation has also been announced."