Startups Advocate for Enhanced Deeptech Support and ESOP Taxation Reforms Ahead of Union Budget

The startup sector is advocating for increased backing for deeptech initiatives and targeted funding for vital technology areas. During the National Startup Day event, which marks nine years of the Startup India programme, Anjali Bansal, Founder of Avaana Capital, highlighted the supportive policy environment startups have experienced recently.

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Bansal emphasised the need for more assistance in core technology and innovation. She noted that this area requires a unique approach and longer development time. Support is crucial for research, engineering, product development, and manufacturing, especially in precision manufacturing, spacetech, deeptech, and biotech.

Focus on Deeptech and Thematic Financing

Prashant Prakash, Founding Partner at Accel India, stressed the importance of focusing on multiple areas like deeptech alongside AI. He suggested creating sector-specific funds similar to the AI mission. Prakash also mentioned the unresolved issue of ESOP taxation, hoping for progress similar to last year's angel tax initiative.

Bansal further pointed out that financing and public infrastructure development are essential for supporting deeptech sectors. She advocated for thematic financing aligned with national priorities such as AI and other deeptech technologies. This could involve thematic funding, incentives, and mandates to bolster these areas.

The startup community is keen on seeing enhanced support in the upcoming Union Budget. They believe that fostering innovation in core technology domains will drive growth and development in India's startup ecosystem. The focus remains on creating a conducive environment for deeptech ventures to thrive.

The call for strategic support reflects the industry's ambition to advance India's position in critical technology fields. By addressing these needs, the government can help startups navigate challenges and seize opportunities in emerging tech landscapes.