Union Budget 2026-27: Entrepreneur KS Bhatia expects FM will consider zero capital gains tax to boost India’s start-up ecosystem
Babushahi Network
Chandigarh, January 31, 2026: KS Bhatia, a well-known serial entrepreneur and Co-Founder of Mr.Proptek which is headquartered in the Chandigarh capital region, expects that Union Finance Minister Nirmala Sitharaman will in the budget, introduce zero capital gains tax for angel investors, venture capitalists and family houses investing in Indian start-ups. He said that such a bold and progressive reform will significantly transform India’s start-up ecosystem.
Union Finance Minister Nirmala Sitharaman will present the Union Budget 2026-27 on Sunday in the Lok Sabha.
According to Bhatia, eliminating capital gains tax on start-up investments would act as a powerful catalyst for both domestic and global investors, encouraging them to deploy larger pools of capital into Indian start-ups.
“India has built a vibrant start-up landscape, but to unlock its full potential, we must create an investor-friendly policy environment. Zero capital gains tax on start-up investments can be a game-changer,” he said.
He further emphasized that such a reform would motivate Indian corporates and successful entrepreneurs to actively participate as investors, rather than remaining passive observers.
Increased participation from experienced business leaders would not only strengthen the funding ecosystem but also bring valuable mentorship, strategic guidance and governance support to emerging start-ups.
Bhatia noted that enhanced capital flow into start-ups would directly contribute to accelerated innovation, large-scale job creation and faster scaling of high-growth ventures across sectors such as technology, real estate services, financial technology, clean energy, and digital infrastructure.
“Start-ups are engines of economic growth. Supporting them through progressive taxation policies will have a multiplier effect on the broader economy,” he added.
Highlighting India’s ambition to become a global innovation hub, Bhatia said that forward-looking fiscal measures are essential to maintain competitiveness with other start-up-friendly economies.
“By fostering a truly investor-friendly environment, India can attract long-term capital, strengthen entrepreneurship, and reinforce its position as one of the world’s most dynamic start-up destinations,” he concluded.