Perspective by Nikhil Agrawal, Co-founder of Powerhouse91
“This year’s Union Budget is balanced with clear focus on growth, infrastructure investments, initiatives for new businesses and push for domestic manufacturing. Some highlights affecting the startup ecosystem and the eCommerce sector are quite encouraging. It was proposed to extend the startup tax holiday scheme to startups incorporated till March 31, 2023. This is particularly important since the number of new startups increased in 2021 for the first time in six years. As announced, ‘One Nation, One Registration’ will be established for anywhere registration to facilitate ease of living & doing business. This will give a boost to the upcoming startups.
PM Gati Shakti Master Plan for Expressways will help increase the infrastructure spending as well as boost logistics. This directly impacts the movement of goods on the road. Further, the government talked about the ‘Unified Logistics Interface Platform’ that would be in place for all mode operators. This will provide for efficient movement of goods through different modes, reducing logistics cost and time, assisting just-in-time inventory management, and eliminating tedious documentation. This will provide real-time information to all stakeholders, and improve international competitiveness.
In the defense sector, 68% capital procurement budget is earmarked for domestic procurement. This is a big step to shift defense manufacturing to India. Other than defense, the concessional rate of 15% has been extended by one year for newly incorporated manufacturing units which will give a boost to the Indian traders.