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