Union Budget 2023: Easing the Journey for Startups
The Indian startup ecosystem has come a long way since the launch of the Startup India Initiative in 2016 under the leadership of Hon’ble Prime Minister Narendra Modi. Today, the country is proud to have over 89,000 thriving startups across the length and breadth of the country, bolstering economic performance.
The 2023 Union Budget has taken several steps to adjunct the startup ecosystem, aiming to reduce the tax burden, improve the investment climate, and boost the entrepreneurial spirit of the country. To enhance the ease of doing business, the Budget highlighted the simplification of the KYC process, the establishment of a Central Processing Centre, and the introduction of a Unified Filing Process.
The Budget has proved especially beneficial for nascent startups. One of the key benefits is the extension of the date of incorporation for eligible startups to avail tax benefits by an additional year. Important assistance from the government for the startups comes in the form of the increase from 7 years to 10 years for carrying forward and setting off losses.
The Budget has also announced the establishment of an Agricultural Accelerator Fund to encourage agri-startups in rural areas. This initiative will enable the creation of a conducive environment for young entrepreneurs and push for digital-led growth in the agriculture sector.
Promoting entrepreneurship and skill development, the Budget announced the setting up 30 Skill India International Centres across different states. These centres will provide training in new-age courses like coding, AI, robotics, and 3D printing, among others, to skill and upskill the youth for the markets of tomorrow. The Skill India Digital Platform will also be launched to enable demand-based formal skilling and provide access to entrepreneurship schemes.
Tourism is another sector that has been given special attention in the Budget, with the Central and State governments taking a mission-oriented approach to promote tourism. This will create new opportunities for startups and entrepreneurs, generating opportunities for employment. Reforms in the financial sector have also been proposed, aiming to improve financial inclusion, service delivery, access to credit, and participation in financial markets. The Budget announced the establishment of 100 labs in engineering institutions to develop applications using 5G services. Giving fresh impetus to green economy, various green programs aimed at promoting clean energy and sustainability were introduced. These initiatives will benefit Clean-tech startups envisioning a resilient tomorrow.
In conclusion, the aspirational initiatives undertaken by the Union Budget 2023 aim to further strengthen the Indian startup ecosystem, providing support and empowerment to entrepreneurs.