Saturday, February 28, 2015

Budget reaction quote by Education players

"It is good to see a big step from Modi government towards boosting startups. IT indicates very clearly Indian government wants to build healthy environment for startups while is prevailing in US and Singapore.
If we are look at this allocation in details there is lack of clarity how these funds will be allocated, what is the duration for this will be available , what is the procedure to get the funds and what kind of startups are eligible and what is the slab of funding .

There are still some cases where government is doing this work but it’s of no use for many. To give an example, we recently spoke to STPI Jaipur they run a program whose objective is to boost startups under name of Startup Oasis ( is in joint venture by RIICO and we approached them for using their facility for our office. They said we are not startup as our company size is 20 people and they denied providing us their facility. They have a facility of siting capacity of atleast 30 – 40 people free from last 6-8 months but still they are not interested in giving them to us.

Big problem here is to address even though government allocates budget but there is no clarity how to utilize, who can utilize, who is the right authority to take decision and what is the definition of startup?"

A brilliant, well thought budget for all sections of society and businesses. Measures targeted on black money are very bold and long due. My top picks from the budget - electrification of 20,000 villages, digital India initiative to connect villages with technology, introduction of new IITs, IIMs and other premier institutes of higher learning,  ensuring a senior secondary school within 5 KMs reach for every child, 1000 Crores budget for promoting technology startups, reduction of tax for royalty fees on technology services, initiatives like Nayi Manzil & Pradhanmantri Vidya Laxmi Scheme to promote education & skill development in India, Reduction of corporate tax by 5% over 4 years.

However, execution and enforcement plan for influx of larger funds in schemes like MNREGA will be interesting to read. As expected, increase in service tax to make way for GST will be hard of Indian pockets. We were expecting a reduction in ROI for Education loans, however, some of it is taken care of with Pradhanmatri Vidya Laxmi Scheme.

Looks like an immensely progressive budget on face value, as an Ed-Tech company we see some really good opportunities coming out of this budget, look forward to details and execution plan.

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