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Below the Quote on Budget Expectation by Khadim Batti, Co-Founder & CEO, Whatfix

“India's booming SaaS industry, fueled by the startup ecosystem, is a key driver of digitalization and has high expectations from the upcoming Union Budget 2024. Streamlining regulations, tax benefits for early-stage companies, and easier access to capital are anticipated by the industry. Robust digital infrastructure with high-speed internet and data centers are also critical for SaaS operations, and continued investment is essential to bolster the ecosystem.

Beyond infrastructure, talent acquisition and development are paramount. The budget should prioritize the expansion of the angel tax to foreign investors, as foreign investment is a significant driver of growth and innovation. We also expect revision in the ESOP taxation structure to reduce the burden on employees who exercise stock options, thereby attracting and retaining top talent. Additionally, aligning Long-Term Capital Gains (LTCG) tax treatment for unlisted companies (including both ESOPs and equity investments) with that of public companies would also incentivize greater investment in startups.

A significantly larger dedicated fund specifically for AI and other frontier technologies is critical. This ecosystem holds the key to propelling India towards its aspired $7 trillion economy by 2030. Incentives for adopting advanced technologies like AI and IoT are also advocated for, as they are vital for boosting efficiency and global competitiveness.

Skilling the workforce remains a top priority. The current gap in qualified AI professionals necessitates government initiatives to bridge the tech skill gap and encourage industry-academia collaboration. Prioritizing AI research empowers youth for a productive future in the 21st-century economy. Further investment in Skill India Digital can enhance workforce capabilities, fostering innovation in emerging technology and keeping India competitive globally.

I am confident that India can lead the global digital economy by fostering a robust digital ecosystem, enhancing the ease of doing business, and promoting continuous learning and innovation. By addressing these expectations, the budget can empower the Indian SaaS industry to become a global leader in innovation and solidify India's position as a digital frontrunner.”

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