TAX ON DIGITAL GOODS IN INDIA AS A PART OF AN ENTREPRENEURIAL START-UP
Abstract
India has analyzed 26,000 startups, making it the third largest startup ecosystem in the country. Over the past three years, the world saw a consolidated inflow of more than $36 billion with 26 "unicorns." – startups valued at over $1 billion. India's startup ecosystem has expanded quite rapidly, primarily through private investment, including seed, angel, venture capital, and private equity, with technical support from incubators, accelerators, and the government. The government is creating an enabling environment through its flagship Startup India an initiative that came into effect in 2016. With India pushing knowledge and a digital economy, the government is trying to implement ICT infrastructure and ensure policy by promoting better e-governance, investment, and technological innovation research and higher education to support entrepreneurship and accelerate economic growth. Data indicate that the expansion of the startup ecosystem has been mainly concentrated in large (Tier 1) cities and states with financial depth, especially in the IT sectors, including e-commerce, transport, and finance. Small businesses outside the metro are not fully aware of these programs that provide or are integrated into various government incentives for startup tax credits. Due to the progress made so far, Indian businesses face enormous challenges such as an unorganized and fragmented market in most industries, a lack of clear and transparent policy initiatives that startups can quickly intervene in, as well as a lack of infrastructure, lack of knowledge and exposure and complications in business. Creating more and more aware of government initiatives and incentives, disbursement of loans to priority sectors, promoting the reach and benefits of the network for Tier 2 and Tier 3 cities, and facilitating funding and tax breaks for foreign and domestic investors could improve opportunities for startups in India.
Keyword : startups, India, digital economy, small business, entrepreneurship, finance tools, venture capital, government policy, and regulation.
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