Integrate Space Into Policy And Program Execution: Sahoo
FinTech BizNews Service
Mumbai, July 05, 2024: With the upcoming Union Budget 2024-25, the senior executives from Spice Money and KaleidEO have shared interesting views on the expectations for the fintech and space tech industries.
Dilip Modi, Founder & CEO of Spice Money:
“As we approach the Union Budget 2024, there is strong anticipation within the financial services sector for measures that will significantly enhance financial inclusion and economic growth. A key focus must be on investing in digital public infrastructure, which is essential for driving India towards its $5 trillion economy goal.
Digital public infrastructure has been instrumental in driving the exponential growth of digital payments in India, with an approximately 90-fold increase over the past 12 years, highlighting the nation’s digital transformation. This remarkable surge underscores the need for robust security measures to prevent digital payment fraud. We commend the recent initiatives to enhance security, such as the announcement of a digital intelligence platform. It is essential to continue focusing on enhancing security and safety measures to support sustained growth and consumer confidence in digital payments.
To maintain the growth of the payment ecosystem, it is essential to empower fintech companies that provide last-mile services. These companies are vital in bridging the credit gap, especially for SMEs and Nanopreneurs, thereby driving entrepreneurial growth and job creation. By making financial products accessible to more people, these fintech firms play a critical role in furthering financial inclusion. Additionally, exempting GST on services offered through Business Correspondent outlets would alleviate tax burdens and make it more feasible to extend financial services to rural and remote areas. This tax relief would lower operational costs and encourage greater outreach, fostering financial empowerment at the grassroots level. This exemption addresses current challenges in invoicing due to GST, crucial for enabling nanopreneurs' access to formal credit and promoting economic stability and growth.
Furthermore, the recognition of Self-Regulatory Organizations (SROs) in the fintech sector represents a positive step towards better regulatory alignment and communication. This will help maintain a balance between innovation and compliance, ensuring that fintech companies can continue to innovate while adhering to regulatory standards.Strengthening this regulatory dialogue will facilitate smoother interactions between fintechs and regulators, fostering a conducive environment for sustainable growth and innovation in the financial services sector.”
Arpan Sahoo, Co-founder and Chief Operating Officer, KaleidEO:
“Building on the successes of ISRO's Chandrayaan and Adithya missions, and the impactful milestones achieved by private sector launch companies, the space sector is gaining confidence, especially with FDI liberalization. However, as a sunrise industry, more demand generation from the government is essential to drive non-linear growth.
While current tax and customs exemptions benefit systems and sub-systems, we need to extend these to component levels. This is crucial for startups operating with limited resources, allowing them time to scale over the next decade. Additionally, while the FDI policy is welcomed, it requires fine-tuning to address certain regressive ambiguities.
The best support the government can provide is to act as a customer. India’s diverse landscape necessitates tailored programs and policies, with a concerted effort through ministries to integrate space into policy and program execution. Massive training programs, awareness initiatives, and industry consultations are crucial at all bureaucratic levels. The industry still relies on imports for critical components and technologies, and ecosystem growth is hindered by a lack of capital for risk-taking R&D. While private funds offer some support, substantial government initiatives are vital for confidence. We expect a significant increase in budget allocation to support these needs.”
