NEW DELHI: With start-ups feeling left out in the Interim Budget for 2019-20, the Department of Industrial Policy and Promotion (DIPP) is likely to hold discussions with different stakeholders from start-ups and angel investors on Monday, in a bid to address their grievances on the taxation issue.
While the government lent an ear to farmers and unorganised sectors in the Budget, it has reduced allocation for the Start-up India initiative, once considered as the BJP government’s flagship programme.
The allocation for Start-up India programme has been slashed to Rs 25 crore for 2019-20 from the revised estimate of Rs 28 crore in 2018-19.
The government had launched the Start-up India initiative in January 2016, targeted at benefitting a large population of youth and helping them to generate self-employment.
However, when it came to its last year, the Union government chose to train their focus on rural distress and unorganised sector, relegating Start-up India initiative to the back.
This has left the start-up ecosystem, which is already grappling with angel tax issues, a tad disappointed with the Budget.