Due to the Corona epidemic, almost all sectors from health-education to startups have been affected. The startups of the country have faced huge challenges in the last two years. Most of the funds ran out, many entrepreneurs had to grapple with multiple tax woes and some had to shut down their operations. Now everyone’s eyes are on Finance Minister Nirmala Sitharaman, she hopes that big announcements can be made in the budget to get rid of Corona.
Government will introduce support mechanism
Union Finance Minister Nirmala Sitharaman will present the budget on February 1. This will be his fourth budget as the country’s full-time finance minister, while this will be the 10th budget of the Modi government, which came to power in 2014. Like all sectors, the startup sector of the country has high expectations from this budget. Investment is at the top of these, experts say investing in startups is important, as they are the engine of job creation. In such a situation, it is expected that the government will bring policies for capital participation at the domestic level and introduce necessary support mechanisms.
Need for tax exemption in FDI
There is a need for tax exemption in Foreign Direct Investment (FDI) with emphasis on startup infrastructure development, which will open doors for globalization of Indian startups. Expectations of clarity and ease in FDI regulations are also attached to startups to help them compete with global players. Also, given that the threat of Covid still looms large over them, startups are hoping for some incentives for manufacturing. Experts in this field say that in the Budget 2022, the government should take such measures, so that the pace of growth of startups continues even further.
It is necessary to promote Digital India
The demands raised by the startup sector are expected to establish India as a deep-tech hub with the development of initiatives like Digital India and Make in India. As digital adoption and transformation accelerate, Budget 2022 will also need to focus on building a strong IT and Internet infrastructure. Due to all this, startups will definitely benefit.