The announcement of India’s Union Budget is just around the corner. The whole country is eagerly waiting for 1 February, when Finance Minister Nirmala Sitharaman will present the Union Budget 2023-24. The government has been working to promote the growth of start-ups in the nation. So, there is no wonder that the start-up sector has high expectations from this year’s budget. Nearly 19,000 start-ups in India were recognized by the Department for Promotion of Industry and Internal Trade (DPIIT) in 2022, according to Statista. In order to support and sustain the growth of start-ups, the Indian government rolled out the Startup India initiative. A total of 80,152 start-ups were officially recognized by DPIIT as of 2022.
Here are the expectations of Indian start-ups from Union Budget 2023:
Simplification of compliances to ensure ease of doing business
Following the Digital India plan which was rolled out in 2015, companies are expecting simplification of the compliances to allow ease of doing business. Arpit Jain, founder and CEO, GreedyGame, said, “The Budget can add to the ongoing effort to simplify the overall tax regime and boost growth. We would like to see the government make policies to specifically help start-ups that make products and services used by global companies.”
Providing tax benefits to encourage the growth of co-working space start-ups
According to Arjun Gulati, co-founder of Easydesq, the government needs to recognise the industry of co-working space under special programs like Real estate investment trusts (REITs). He added that the government should offer some tax benefits to encourage the growth of this sector.
He further said that as the shared space industry grows, providing a lower Tax Deducted at Source (TDS) will give this sector a big boost and allow companies to offer real estate solutions to clients at economical rates. This will further enable a better flow of capital.
Forming conducive environment for digital learning
The ed-tech industry wants the government to envisage a framework that encourages the collaboration of start-ups with government agencies. The collaboration will develop knowledge-sharing capacity, and allow holistic development of the nation. According to Gaurav Goel, co-founder and CEO, of Toprankers, the ed-tech industry expects the budget to announce favourable regulatory measures for digital learning.
SLI for drone segment
Agnishwar Jayaprakash, founder and CEO, of Garuda Aerospace, said that the government has rolled out the Production Linked Incentive (PLI) schemes from a manufacturing start-up perspective. He added that Service Linked Incentive (SLI) should also be launched, especially for the drone segment.
Develop a separate ministry for start-ups
The government organisations promoting Startup India and Invest India should connect more with the start-up community. A separate ministry for start-ups should be formed.