Telecom Lead India: Arunn K Asthaana, MD & CEO, VVIDIA Communication, says the country needs to replicate institutional mechanisms to bootstrap growth in start-ups, similar to what the STPI scheme did for the services companies in the 90s.
In his budget recommendations for 2013-14, Asthaana said: “We expect the Budget 2013-14 to take steps to increase broadband penetration. One of the way of increasing penetration is by making it affordable to the end-user especially on mobile.”
Internet, like telecom services, attracts 12 per cent service tax is acting as a deterrent. Abolishing service tax on mobile internet/broadband services in Budget 2013-14 would make it affordable and boost penetration as well as help in empowerment of users through knowledge and information in non metro as well as rural India .
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“We will appreciate if the service tax is abolished on telecom Value-Added Services (VAS) and it should be treated as supply of service. We expect the union budget to create a world-class start-up ecosystem by 2015. The start-up ecosystem is must for driving innovation and growth in the country,” he added.
VVIDIA Communication expects Budget 2013-14 to focus on setting up industry-ready incubators, expansion of incentives for private incubators, funding support and incentives for entrepreneurs to set up a venture would provide the necessary thrust to the ecosystem.
The budget should also provide some specific incentive to MNCs/ large enterprises to collaborate with start ups and young companies in early growth stage to develop core intellectual property.
VVIDIA likes the Budget 2013-14 to provide for an income tax-exempted venture funds to fund young companies in early growth stage. The country needs to replicate institutional mechanisms to bootstrap growth in start-ups and young companies, similar to what the STPI scheme did for the services companies in the 90s.
