How the Startup reacts! 

 On Tuesday, Finance Minister Nirmala Sitharaman delivered the Union Budget 2022, which covered all elements of the economy, from infrastructure development to educational initiatives to the establishment of the National Tele-Mental Health Program.

The Budget arrives at a time when the Indian economy is on the mend after the pandemic, with Sanjeev Sanyal, the Ministry of Finance's Principal Economic Advisor, claiming that the economy is currently doing better than before the pandemic. Budget 2022 increased capex investment by 35% to promote seamless multimodal connectivity and logistics efficiency by broadening the scope of PM Gati Shakti's master plan for constructing "holistic infrastructure."

The Budget aided the recovery from the pandemic to all the MSMEs by recommending measures for more than 30% of the current GDP. ECLGS (Emergency Credit Line Guarantee Scheme) has also been extended till March 2023, with Rs 50,000 crore set aside for tourism and associated sectors. 

The Union Budget also provides certain incentives to start-ups. Some of the initiatives, according to experts and industry watchers, were beneficial.The tax discount period for start-ups has been extended by one year, which is a really welcome step in my opinion. Similarly, the newly established industrial entity will be subject to a 15% tax. The incorporation term has been extended by one year, to 31-3-2024. This will stimulate manufacturing activity even more.

The "one station, one product" initiative outlined in the budget would help local distribution networks, which will have a significant positive impact on small farmers and MSMEs. In addition, the budget announced that 100 PM Shakti Cargo terminals will be built during the next three years. Overall, the MSMEs and other small businesses will benefit from this year's budget.

All in all, despite the fact that the Union Budget 2022-2023 did not relieve us of higher tax obligations, it did provide some relief to enterprises and entrepreneurs that struggled during the pandemic. This will help to incentivize and nurture the startup environment, as well as foster positive attitudes toward entrepreneurs.

Watch out for more updates!