It is February 01, 2021 and it is budget day.So, when the Honorable Finance Minister Nirmala Sitharaman presents the Union Budget 2021-2022 later this day, the Tech and Startup industry will be tuning to know what’s in it for them for boosting the progress in the post-pandemic future.
Already, the Indian Government has intended of introducing a crypto-currency bill during the ongoing budget session, amid deliberations on allowing pension funds and insurance firms for investment in the Indian startups.
The fintech industry also expects reformation for the country’s financial integration amid the increasing digital payments.
These are the headlines in the tech section gaining prime importance.
1.The Industry Under A Panic Mode Due To The Crypto-Currency Bill
The cryptocurrency entrepreneurs of the country and the industry leaders have hands over the panic button as the Central Government prepares the outlaw trade in private e-money prior to the potential launch of India’s official digital currency.
Previously on Friday, the Centre announced that it will be introducing the Cryptocurrency and Regulation of Official Digital Currency Bill, 2021 in the ongoing budget session.This is aimed at paving the way for an eventual introduction of digital money by the country’s central bank during the Chinese testing version of the digital yuan.
The industry mavens, who are happy with the government’s move, have concerned with the provision seeking to prohibit all private cryptocurrencies in between allowing certain exceptions for promotion of the underlying technology.
2.
Startup Funding In Budget 2021
Amidst the regulatory measure decrease, the Indian startups continue to receive 85 percent of their funding from overseas investors.And the Government seeks to change that.
The Government has started deliberations on the allowance of the domestic pension and insurance funds for investment in Indian startups.Though the idea was in the chain, the industry watchers believe that it is the right time for the Indian institutional investors for taking charge of the shares in the Indian startup ecosystem.
There is the possibility that the local institutional investment and favourable regulations and tax breaks will restrict the practice of ‘Flipping’ prevalent in the Indian startups (experts’ suggestions).
3.
Fintech Provisions In Budget 2021
The fintechn industry hopes for a favorable Union Budget 2021-2022 prior of the crucial year for the country’s exclusive burgeoning digital economy.
The majority of the country’s consumers and small businesses expect to add digital means for receiving payments and financial services for the first time.
The Hon’ble FM is expected to present a budget addressing the requisites for bolstering an economy ravaged by the pandemic.
Industry experts believe that the reforms providing the country with finance for the mandatory development through the effective use of technology will be highlighted in the budget.
Industry says disruptive growth witnessed by the fintech ecosystem in 2020 has given the cause of the requirement of a more focused approach for sustainable growth and consumer confidence protections.
4.India’s GameStop Story
This was majorly done through memes on subreddit group r/wallstreetbets and Instagram Stories, however, the market watchers say that the GameStop-similar event is unlikely to take place in India.
It is for the young Indians, where the GameStop’s short squeeze and everything that has followed in the United States since then equivalent to anti-establishment narrative it generated of its trading on Robinhood Markets, debates among politicians over social media communities influence on stock markets, requires a refresher course in understanding the possibilities the market holds for them..
