Startups Expect PLI scheme Inclusion, Conducive Policy Framework from Union Budget The finance minister recently held a pre-budget consultation with representatives of trade unions, with regards to the preparation of the union budget, with the meeting focused on understanding the opinions of trade unions in relation to the upcoming budget.
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All eyes are on Finance Minister Nirmala Sitharaman as the country approaches the Union Budget 2025, with the financial roadmap for the country set to be released on February 1st.
The finance minister recently held a pre-budget consultation with representatives of trade unions, with regards to the preparation of the union budget, with the meeting focused on understanding the opinions of trade unions in relation to the upcoming budget.
Notably, the budget is poised to include new industries to the Production Linked Incentive (PLI) Scheme, a government initiative that aims to strengthen India's manufacturing sector. The scheme currently offers financial incentives to industries like electronics, pharmaceuticals, automobiles, and textiles, in exchange for measurable outcomes.
In manufacturing, furniture is one sector that is eagerly anticipating its inclusion in the scheme, and as previously indicated by Nirmala Sitharaman, this move can potentially propel the sector to new heights and align with the 'Make in India' initiative, according to Andre Eckholt, Managing Director, Hettich India.
"Inclusion in the PLI scheme would enable the industry to invest in capital expenditure (capex) and adopt advanced manufacturing technologies and know-how. This modernization could reduce production costs and boost global competitiveness which would be complementary to the introduction of BIS in the furniture fitting sector. This would be a game-changer, modernizing and making Indian furniture a global brand," said Eckholt.
Reduction of Goods and Services Tax (GST) has been a topic of discussion for the longest time across industries and is also eagerly anticipated by the consumer-focused home furnishing sector, according to Radhika Koolwal, Co-Founder of Urban Space.
"We hope for policies that incentivize domestic manufacturing, such as subsidies on raw materials and machinery, along with tax breaks for MSMEs and startups. A reduction in GST rates on home furnishings and decor items would be a significant step toward making quality products more accessible to the growing middle class," said Koolwal.
Koolwal also said that she expects new initiatives through the budget that encourage sustainable practices, such as tax benefits for adopting eco-friendly practices and utilization of sustainable materials.
The previous budget included several encouraging initiatives that helped the startup ecosystem, such as the extension of tax benefits, focus on digital infrastructure, and most notably, an INR 1 lakh crore corpus for a low-interest debt fund.
Gaurav Dagaonkar, co-founder and CEO at Hoopr said that the momentum from last year has made him eagerly anticipate the upcoming budget.
"For music-tech startups like ours, initiatives that further simplify and strengthen intellectual property regulations, provide access to affordable capital, and incentivize innovation in areas like AI and music technology will be crucial. We need a policy framework that not only supports the growth of India's INR 10,000 crore creator economy but also fosters responsible innovation and empowers creators to thrive," said Dagaonkar.
