Federal Finance Minister Nirmala Sitharaman was spared in arguing the importance of entrepreneurship for the country’s economic development while presenting the federal budget on Wednesday. It’s not that there isn’t one. India is now her third largest startup her ecosystem in the world with over 100 unicorns and her over 80,000 startups recognized nationwide by the Department of Industry and Internal Trade Promotion (DPIIT). The sector has seen a steady rise in SaaS-based companies, GCC, and several tech startups including AI, robotics, space tech, fintech, and more.
FM on Wednesday proposed extending the period for establishing income tax incentives for eligible startups by another year to March 31, 2024. Startups established by March 2023 have been able to take advantage of tax incentives so far. The finance minister shared in the budget that this would provide the benefit of loss carry-forwards associated with the change from seven-year incorporation to ten-year shareholding.
“The government has taken many steps towards startups and delivered results. India now has the third largest startup ecosystem in the world and ranks second in innovation and quality among middle-income countries. It is being held in the House of Representatives in 2023-2024.
Importantly, FM also announced that the center will launch an accelerator fund to boost agritech startups. FM said in Union Budget 2023 that the fund would follow a cluster-based approach. She said the digital public infrastructure for agriculture will be built as open source, open standards and interoperable public goods.
“This will enable a comprehensive and farmer-centric approach through crop planning and health related information services, improved access to agricultural inputs, credit and insurance, crop estimation assistance, market intelligence, and support for the growth of the agritech industry and start-ups. solutions are possible,” she said. It is appropriate to mention that in January 2016, the current government launched the Startup India initiative to build a strong ecosystem to foster innovation and encourage private investment in the startup ecosystem. am. Since then, a series of measures have been taken to promote startups in the country.
Interestingly, in its 2023 economic survey, the Ministry of Finance revealed that there are over 1,000 agritech start-ups in India, with over 500 start-ups working in the millet value chain. Meanwhile, India’s Millet Institute fostered his 250 start-ups under Rashtriyakrishi. Vikas Yojana – Reward-Based Approach for Revitalization of Agriculture and Allied Sectors (RKVYRAFTAAR). The survey also highlighted that private his equity investments in the agritech sector have surged over the past four years.
Last year, the center announced tax incentives and relief, such as capping the long-term capital gains (LTCG) surcharge on all assets to 15%, and gave qualified start-ups a discount for tax incentives. We have extended the establishment period by one more year. Naturally, the startup wrapped it up. “As a start-up, we have seen our start-up ecosystem gain international acclaim and give us a lot of hope. It is important for us to be able to meet our daily capital needs to sustain our future budget, said Abhinav Kumar, co-founder and CEO of Kaldi Craft Coffee Pvt Ltd. increase.
“The 2023 budget presented by Finance Minister Nirmala Sitharaman is a comprehensive plan aimed at preparing India’s youth for the impending disruption caused by the integration of artificial intelligence and the widespread adoption of 5G technology. In an ever-changing world, our future workforce will be equipped with the skills and knowledge needed to thrive in the digital economy. It proposes a range of initiatives aimed at upskilling and reskilling youth, including promoting entrepreneurship, and promoting entrepreneurship.. These initiatives not only create employment opportunities, but also stimulate innovation and competition in the country. The government’s commitment to investing in human capital and building a skilled workforce is a key factor in ensuring India’s long-term prosperity and growth. It clearly shows that is taking proactive steps: shaping a better future for its citizens and the country as a whole,” said Rohan Ganeriwala, co-founder of Collegify.
Anuvrat Pabrai, owner of Pabrai’s Ice Creams, said: Also, new business loss carryforwards are allowed for he 10 years instead of 7 years. Both are very beneficial for us. ”