Join our Waitlist for Expert Advice!

Key Takeaways For Startups Presenting the Union Budget 2022, Finance Minister Nirmala Sitharaman, made fresh announcements for the startups in the country

By Shrabona Ghosh

Opinions expressed by Entrepreneur contributors are their own.

You're reading Entrepreneur India, an international franchise of Entrepreneur Media.

Pexels

Finance Minister Nirmala Sitharaman on Tuesday, presented her fourth Union Budget as the country continues to navigate through the economic challenges thrown by the pandemic. From agriculture to defence, the Union Budget has an array of highlights for the growing startup ecosystem of India.

Agriculture

Use of "Kisan Drones' will be promoted for crop assessment, digitization of land records, spraying of insecticides and nutrients. A fund with blended capital, raised under the co-investment model, will be facilitated through NABARD. This is to finance startups for agriculture & rural enterprise, relevant for farm produce value chain. The activities for these startups will include, inter alia, support for FPOs, machinery for farmers on rental basis at farm level, and technology including IT-based support.

Skill Development

Startups will be promoted to facilitate "Drone Shakti' through varied applications and for Drone-as-a-Service (DrAAS). In select ITIs, in all states, the required courses for skills will be started.

MSMEs

Emergency Credit Line Guarantee Scheme (ECLGS) has provided much-needed additional credit to more than 130 lakh MSMEs. The ECLGS will be extended up to March 2023 and its guarantee cover will be expanded by INR 50,000 crore to total cover of INR 5 lakh crore, with the additional amount being earmarked exclusively for the hospitality and related enterprises.

Clean and Sustainable Mobility

Impetus on using public transport in urban areas. This will be complemented by clean tech and governance solutions, special mobility zones with zero fossil-fuel policy and EV vehicles.

Boost for EVs

Considering the constraint of space in urban areas for setting up charging stations at scale, a battery swapping policy will be brought out and interoperability standards will be formulated. The private sector will be encouraged to develop sustainable and innovative business models for "Battery or Energy as a Service'.

AtmaNirbharta in Defence
Defence R&D will be opened up for industry, startups and academia with 25 per cent of defence R&D budget earmarked.

Tax Incentives

Over the past few years, the country has seen a manifold increase in successful startups. Eligible startups established before 31.3.2022 had been provided a tax incentive for three consecutive years out of ten years from incorporation. In view of the Covid pandemic, the period of incorporation of the eligible startup has been extended by one more year, that is, up to 31.03.2023 for providing such tax incentive.

Shrabona Ghosh

Correspondent

A journalist with a cosmopolitan mindset. I lead a project called 'Corporate Innovations' wherein I cover corporates across verticals and try to tell stories on innovations. Apart from this, I write industry pieces on FMCGs, auto, aviation, 5G and defense. 
Money & Finance

Customers Have a Favorite Payment Method — But 30% of Businesses Don't Accept It. Are You Driving Business Away?

This article examines the surprising gap between what consumers want in payment options and what small businesses currently offer. It also provides strategies for small business owners looking to adapt to these preferences and enhance customer loyalty.

Leadership

Could We Have The First Native American Woman Governor? DEI Expert Weighs In On What Allyship Should Look Like If History Is Made.

We can all learn more about what it means to be a better ally for those who are the "firsts" in their space. Here are three strategies around allyship this DEI expert recommends to her diversity, equity and inclusion (DEI) consultancy clients.

Business News

'Additional Human Touch': Starbucks Has a Turnaround Plan That Includes Buying 200,000 Sharpies. Here's Why.

Faced with declining sales, Starbucks has a comeback plan that involves several changes to stores and menus. Here's a look at the changes coming to your store.

Growing a Business

How to Effectively Manage Intangible Assets for Long-Term Business Success

Intangible assets, unlike physical ones, may evolve to a point where the business objective no longer has the capacity to utilize them effectively. This evolution triggers the need for transformation, potentially turning an intangible asset into a product for sale.