Union Budget 2022 for startups and investors brings cheers. For the Startup industry it is a welcome news as the it has allocated substantial amounts towards Research and Development in several sectors including Defence.
Furthermore, the Government will set up an expert committee to boost venture capital. Niti Ayog Chief says as far as venture funds & ESOPs for startups are concerned, we will quickly get into this committee, sort these issues out & move forward.
The Economic Survey released on Monday had said that India now has more than 61,400 startups recognized by the Department for Promotion of Industry and Internal Trade (DPIIT). At least 14,000 recognized startups were added in the 2021-22 fiscal, it said.
The proposal to reserve 25 percent of the R&D Budget for Startups and Private entities is an excellent move in the Union Budget 2022.
It is a Budget which would give fillip to ‘Make in India’, boost demand and build capacities for a stronger, prosperous and confident India.
Private industry will be encouraged to take up design & development of military platforms & equipment in collaboration with DRDO.
Union Budget 2022 for Startups: Tax Incentives Extended for one more year
In a relief to startups, Finance Minister Nirmala Sitharaman in the Union Budget 2022 has announced an extension of one year for the incentives provided to them.
Startups have emerged as a growth driver for the economy. Tax incentives for startups increased from three years to four years of incorporation, in view of the pandemic,” the minister said while announcing the Union Budget 2022.
A Digital University will be set up by the government for providing online education in multiple languages, Sitharaman said. A web portal has been announced for skill development.
Startups serving agricultural and rural sectors will be served with a fund mobilized via NABARD.
For setting up charging stations at scale, a battery swapping policy will be put in place and interoperability standards will be put in place. Battery or Energy as a Service will be pursued as a model, Sitharaman said.
In 2021, emerging economy companies raised a record $42 billion through global and domestic funds. The number of Unicorns, companies with a billion-dollar valuation, almost doubled with 42 new ones joining the coveted club in the year, taking the total count to 83.