Unemployment has been a global issue over the last two decades. Even first world countries like the US, France, and Germany are looking for a feasible solution to it. It can be effectively tackled through effective start-up ecosystem. The newly formed Narendra Modi’s government in India has been dynamic with its renewed approach in tackling unemployment. As traditional jobs are shrinking in the digital era, the country is banking upon the young entrepreneurs. In her maiden Finance Budget, Union Finance Minister, Nirmala Sitharaman, has categorically focussed on the start-up industry in India.
Primarily the government is trying the remove all hurdles for the entrepreneurs. The announcement of tax relaxation for angel investors and start-ups is a blessing in this regard. Nirmala Sitharaman has affirmed that young entrepreneurs will not be subject to any scrutiny by the Income Tax department if they file requisite declarations and also provide the requisite information in their return. Not only that, the Union Finance Minister has confirmed of special arrangements to be made by the Central Board of Direct Taxes which will regularly assess the start-ups and redressals of their grievances will be looked upon without any delay. By 2024, the Indian government has pledged to set up 50,000 new start-ups and 5000 new incubators. In fact, the decision to set up 100 innovation zones in urban local bodies is considered to yet another game-changing one.
As per the announcement in the General Budget, Stand up India scheme will continue until 2025. From an investment point of below, the central government has eased local sourcing norms for FDI for the single-brand retailing sector. As far as knowledge exchange is concerned, Union Finance Minister has announced that an annual global investors’ meet in India will be organized every year using the National Infra Investment Fund as the anchor. The MSME sector has every reason to rejoice as the budget has allocated Rs 350 crore for 2% interest subvention for all GST-registered MSMEs on fresh or incremental loans. The decision to allot pension for shopkeepers and retailers with turnover less than Rs. 1.5 crore under ‘Pradhan Mantri Karma Yogi Maan Dhan Scheme’, which will help the industry altogether.
Continuing with the proactive approach concerning Digital Economy, the decision to introduce NCMC, India's first common mobility payment solution to enable people to pay multiple transport charges across the country is another welcome change. Nirmala Sitharaman also made it a point that the Central Government is looking forward to creating 80 livelihood incubators, 20 tech incubators to help create 75,000 skilled entrepreneurs in agriculture and rural industry. This is indeed a huge boost to entrepreneurship in agriculture and rural industry. The decision to launch a dedicated channel for start-ups within the DD bouquet of channels shows the intent of the Narendra Modi’s government for the start-ups. The government also deserves kudos for focussing on training youth on new-age skills like AI, IoT, 3D Printing, Big data, and Robotics which can be instrumental for India’s growth in the digital era.
There is no denying the fact that the ruling BJP promised to create Rs 20,000 crore seed fund to back up and support early-stage ventures. Added to that, the BJP pre-poll manifesto also promised to provide collateral free credit of up to Rs 50 lakh to entrepreneurs. So, in the coming days, one can say that the Narendra Modi government will come up with more encouraging policies to boost the start-up industry in India. Already various foreign investors have been encouraged by desi innovations. Not only the start-up industry can help in employment generation and tackle brain drain but also complement the ‘Make in India’ initiative of the Narendra Modi’s government.
Disclaimer: The opinions expressed within this article are the personal opinions of the author. MyIndMakers is not responsible for the accuracy, completeness, suitability, or validity of any information on this article. All information is provided on an as-is basis. The information, facts or opinions appearing in the article do not reflect the views of MyindMakers and it does not assume any responsibility or liability for the same.