Finance Minister Arun Jaitley will open the budget for this year in about two weeks. The prediction is real in the startup community, as it comes close to the Startup India action plan announcement. If the startup India action plan set the way on what government should do and should not, now it’s the time to ensure it walks the talk this budget.

Likewise the encouragement that the government wants to give to the startups in terms of Credit guarantee mechanism through National Credit Guarantee Trust Company (NCGTC) / SIDBI for debt funding is most important. In smaller towns and cities, where the startups lack the VCs and angels, the banks form the backbone for the startup lendings and startups are usually considered as the high risk areas.

Tax breaks for three years for startups are good and appreciated but there is uncertainity that will it have a favourable impact. Three years time is too short and usually many startups do not make any profit during this time.

Far away the direct measures in helping the startup community, there are also indirect ways to encourage the ecosystem. The budget should also give importance to the governments other flagship programmes which is digital India. The government is searching out various government to citizen schemes that will reach the Indians in a simpler, faster and seamless way.

Startups always positions to benefit from such schemes as supportive services can be built around. The budget can be an engine to boost the growth in the startup ecosystem.