Budget 2023 Expectations: India is emerging as one of the strongest business environments in the world, and our entrepreneurial spirit is our greatest strength. India’s startup ecosystem, the third largest and the fastest growing, has become an integral part of the country’s economy and overall development. Apart from bringing disruptive inventions to market, startups play a significant role in creating jobs across India. Startups focused on expanding their operations create the majority of new jobs in every state and every industry in the country.
India is trying to seed and develop many new industries such as electronics, semiconductors, manufacturing and renewables to aid small businesses and empower entrepreneurs. Attracting and encouraging entrepreneurs and investors to participate and drive growth in these new age industries is critical to the country’s success. Thus the Union Budget’23 has many industry leaders eyeing what it has to offer this year. Some of the expectations and outlooks laid out from the budget by industry professionals include:
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According to Ridhima Kansal, Director, Rosemoore, “The Indian start-up ecosystem is no longer a peripheral entity, but is becoming the focal point of the overall India Inc. Today India is home to the third largest number of startups in the world. followed by the United States and China. In the current budget, it is necessary for the government to take prudent steps to help start-ups. There is an urgent need for a separate taxation regime for start-ups which can be extended to PE players, VCs, etc. Similarly, the government should help Indian start-ups to list in international markets as well. This will help them to access easy and smooth capital flow.
“This funding freeze comes at a time when India is vying to become the next startup capital of the world. The question now is whether the Budget for 2023-24 will provide clarification on these policies to encourage startup investments. Promoting entrepreneurship by funding start-ups with high growth potential through government programs may also soon become a reality. Entrepreneurial education may also be on the government’s agenda, with the goal of improving employability through the transfer of labor-market-valued skill sets.
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Pointing out some records, Lokendra Singh Ranawat, CEO, WoodenStreet, emphasized the fact that winter had come early for Indian startups, with startup funding hitting an all-time low in the third quarter (July-September) of last fiscal Went. , Startup funding in India stood at $2.7 billion across 205 deals, the lowest in the last two financial years, according to a PwC report. This clearly reflects increased deal-making selectivity and greater emphasis on investment profitability and growth.
The Budget 2023-24 is expected to benefit taxpayers with an emphasis on the potential economic benefits. Apart from this, the service class can expect long-term benefits such as medical health, pension allowance, post-retirement, maternity benefits etc. in the coming budget. Furthermore, given that the Indian economy has started recovering from the financial consequences of the pandemic crisis, the current government will focus on the main goal of planning a budget that boosts overall economic growth. Being from the tech sector, companies are anticipating the manufacturing space will be rewarded for bringing in new technologies and adopting sustainable business practices.
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Ashish Agarwal, Director, Space Ministry, said that the government has talked about allowing nationalized banks to use the accumulated GST credit as leverage. There is no better time than now to act and bring in liquidity, given concerns about another pandemic threatening humanity. Not only will this benefit SMEs and startups, but it will also allow banks to deploy credit limits that have been used less than in the last two budgets. Inspiring the next generation of successful entrepreneurs.
Overall, it is expected that the government takes a 360-degree view of the needs of the start-up community and moves forward with further emphasis on developing an ecosystem that supports the growth of the community.