Startup sector welcomes interim budget proposal of setting up 1 lakh digital villages

Mumbai: The startup sector has welcomed the interim budget proposal of setting up one lakh digital villages saying that it will give boost to the sector. Taking forward government’s Digital India programme, Finance Minister Piyush Goyal Friday said that the government has set an aim of building one lakh digital villages in the next 5 years. [caption id=“attachment_4377229” align=“alignleft” width=“380”] Representational Image. Reuters[/caption] “The initiative to set up of one lakh digital villages when rolled out will have multiplier effect on startups in segments like edutech, content based companies, media tech and of course fintech and e-commerce,” Unicorn India Ventures managing partner Anil Joshi said. This will ensure faster financial inclusion of people who still continue to be outside of formal banking system and have no credit history. Startups working in fin tech and edutech should see this as a promising opportunity to tap the unaddressed and underserved rural population, Joshi said. City-based cyber security startup Sequretek welcomed the government’s focus on artificial intelligence, as other countries have already made a start by investing heavily in AI and lead initiatives to become a data rich economy. Bengaluru-based fin tech startup in direct lending segment Smartcoin said the initiative to build one lakh digital villages would mean more money being transacted digitally as the country possibly has the lowest penetration when it comes to mobile and data tariffs in the world. “Digitally progressive would also mean better internet connectivity and hence we expect the untapped rural consumers to start using digital payments.” For us, this means more alternate data generated to assess loan seekers. And over time a formal credit history will be built, as they will not only transfer money but also take micro loans for their needs. For a fin tech company in direct lending space like ours, this is a huge push to achieve our vision of bringing under banked masses under a formal credit system, it said. Noting the move to enhance tax exemption for salaried employees and digitising the entire tax filing process, Fintech company Zeta’s co-founder Bhavin Turakhia said, “The decision to carry all tax verifications via an anonymous digital interface and processing all tax returns within 24 hours displays the government’s strong intention to build a digital nation, whilst putting convenience in the hands of its citizens and ensuring complete transparency.” Wearable devices-maker Goqii that is backed by Ratan Tata and Paytm founder Vijay Shekhar Sharma, among others, said healthcare announcements made in the budget are a welcome move and will help build a strong economy.