This year’s budget acts as a multiplier for growth and jobs with a focus on ensuring inclusive development with an emphasis on infrastructure and investment. It checks off all the necessary boxes to guarantee the nation’s fiscal consolidation and serves as a vision statement for businesses looking to the future for sustainable growth. Considered the “first Budget in Amrit Kaal,” let’s look at how Budget 2023 might foster an environment that is favorable for startups founded by young people in India.
The Great Indian Startup story
The Indian startup ecosystem has seen tremendous growth in the last few years, with the number of startups increasing from 4,200 in 2014 to over 80,152 in 2022.[1] This growth is largely driven by the youth of the country, who are increasingly turning to technology-driven startups to create innovative solutions to the problems faced by the country.
However, the growth of these startups has been hampered by a number of factors, including a lack of capital, government support, and infrastructure. The Union Budget 2023 will undoubtedly benefit them, as tax holidays have been extended by one year, until March 31, 2024.[2] Furthermore, startups will be able to use this facility within the first ten years of incorporation, up from seven years previously. Now that startups will be able to take advantage of tax breaks for another year, they will be able to focus solely on capital growth and infrastructure support, such as access to high-speed internet, to help scale up their operations. Tax incentives will also assist companies in lowering their operating expenses. This will enable startups to spend on R&D while concentrating on their core business operations.
What more can be done?
To assist startups in growing and developing, the government should focus on providing access to talents, such as experienced professionals and skilled workers. There should be schemes in place for new-age businesses to gain easy access to markets, such as international markets, in order to broaden their reach and increase their revenues. The government should also prioritize the availability of mentors and advisors to assist new businesses in navigating the complexities of the startup ecosystem.
Finally, the government should prioritize access to incubators and accelerators in order to assist them in obtaining the necessary support and resources to launch and grow their businesses. This will allow startups to gain access to the resources and guidance they need to succeed.
(The author is Ms. Anuja Patil, CEO & CO-Founder, Unilife, an off-campus lifestyle app in India and the views expressed in this article are her own)
