Union Budget sees positive reactions from industry and startup sector
Nirmala Sitharaman, the finance minister, unveiled the Union Budget 2023 on Wednesday. It was aimed to improve the government’s focus on welfare by providing advantages for farmers, tribal people, and women while also supporting the country’s middle class through tax relief and refunds. Individuals with annual incomes up to Rs 7 lakh are exempt from paying tax under this system.
At the same time, the Union Budget also attempted to promote consumption and enhance infrastructure spending to encourage growth and job creation while reducing spending for the rural job programme and subsidies to satisfy fiscal discipline targets. Most industry analysts saw the budget as a boost to the industry.
Mr Rajeev Taneja, Founder, and CEO of Global Care said this about the budget: “In terms of accelerating the growth of healthcare, the announcement of setting up 157 new nursing colleges in co-locations with the existing 157 medical colleges already established since 2014 will truly help garner better facilities for medical value tourism. This investment in creating a skilled medical support staff will ensure that overseas patients also get the best care possible. Dedicated multidisciplinary courses for medical devices will be supported in existing institutes to ensure the availability of skilled manpower for futuristic medical technologies, high-end manufacturing, and research which will propel Medical value tourism to new heights ensuring facilities that are at par with international standards.”
Mr. Anmol Bohre, Co-founder & Managing Director of Enigma said the budget will provide a fillip to the automobile sector, particularly the EV sector. “It is really great to see how environmental sustainability has been one of the top 7 priorities in this budget. The Pro-EV budget focuses on much-needed initiatives such as Customs Duty reduction from 21% to 13% on capital goods and machinery required for Lithium Batteries and an extension of the subsidies on EV batteries for one more year. This will certainly encourage each EV manufacturer to contribute to Government initiatives to achieve mass EV adoption by 2030. This will also encourage investments in the EV sector which help new players to continue with innovation,” he said.
Shreya Gupta, CEO & Founding Partner at Four Founders PR, an Advertising & Marketing Firm, said the budget has had many start-up-friendly policies over the years. “Currently, India has the third-largest startup ecosystem in the world and is second among middle-income nations in terms of innovation and quality. Finance Minister Nirmala Sitharaman recommended prolonging the period of incorporation for income tax benefits to qualifying start-ups by one more year until March 31, 2024, citing the value of entrepreneurship for the nation’s economic development. Previously, tax advantages were extended to newly incorporated start-ups through March 2023. She also suggested increasing the period of time that start-ups can carry over losses from changes in shareholding from the current seven years to ten. I believe overall the Finance Minister has done an excellent job in striking a fine balance in being fiscally prudent and growth supportive,” she said