Union Budget 2023: Centre Is Likely To Extend Incentives To Boost Startups The government may reportedly consider providing funds to infrastructure projects approved by the Network Planning Group (NPG), constituted under the PM Gati Shakti initiative
By Teena Jose
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The union government is likely to announce, in the most awaited Budget 2023, the measures to further strengthen the startup ecosystem in the country and address the inverted duty issues in certain sectors to promote domestic manufacturing, according to a PTI report, citing official sources.
Inverted duty structure refers to taxation of inputs at higher rates than finished products that results in build-up of credits and cascading costs.
The government has already taken a series of steps to promote startups in the country. Under the Startup India initiative, Fund of Funds for Startups (FFS) scheme, Startup India Seed Fund Scheme (SISFS) and Credit Guarantee Scheme for Startups (CGSS) are implemented to provide capital at various stages of the business cycle of a startup, as per the report.
The commerce and industry ministry has suggested steps to further promote ease of doing business for startups," one of the sources told PTI.
Moreover, the government may reportedly consider providing funds to infrastructure projects approved by the Network Planning Group (NPG), constituted under the PM Gati Shakti initiative. Gati Shakti was launched in October 2022 by Narendra Modi to develop integrated infrastructure inorder to reduce the logistics cost.
According to earlier reports, it is also expected that the government is likely to extend fiscal incentives for the production of toys, bicycles, and leather and footwear in the forthcoming budget as it looks to expand the production linked incentive (PLI) scheme to cover more high-employment potential sectors.
