The budget has paid attention to employment generation, skilling, entrepreneurship and the startup economy. To address this crucial need, FM has allocated ₹2 tn over the next five years to benefit 41 mn young people. The scheme to provide 10 mn young Indians with internships at large companies with government- and CSR-backed stipends over the next five years is the right approach to employability and jobs for the future. 21 mn youngsters are expected to benefit from the employment-linked incentive scheme for first-time employees, wherein GoI will provide a month’s wage to all new entrants in formal sectors.
The Indian startup scene is a vibrant and dynamic space. GoI’s decision to abolish ‘angel tax’ for all classes of investors is welcome. This will create a more favourable environment for investments in early-stage startups in India and boost the overall startup ecosystem, thereby fostering growth and innovation.
Furthermore, the decision to double the limit to ₹20 lakh for collateral-free MUDRA loans for small/micro enterprises is likely to encourage entrepreneurship, promote self-reliance and boost the rural economy. Towards this, FM announced a mechanism for spurring private sector-driven research and innovation commercially with a financing pool of ₹1 tn. However, we need to read the fine-print to understand the implications of the outlay, particularly regarding support for private sector R&D.It is also encouraging to see a strong emphasis on research and innovation in agriculture, which is crucial. GoI is also looking at upgrading and upskilling farmers through research. Specific to the pharma sector, the removal of customs duty on three cancer drugs will provide relief to cancer patients. However, GoI needs to consider GST exemption for all cancer drugs to make cancer care more affordable for patients.The budget also offers significant support for the MSME sector. It ensures accelerated funds availability by reducing the threshold for working capital requirements and provides special attention to labour-intensive manufacturing.A new mechanism will facilitate the continuation of bank credit to MSMEs during periods of stress. Additionally, ecommerce export hubs will be established in a public-private partnership mode to help MSMEs and traditional artisans sell their products internationally, offering seamless trade and export services under one roof.
FM also announced that it will develop a taxonomy for climate finance to enhance the availability of capital for climate adaptation and mitigation. She also announced financial support for micro and small industries to shift to cleaner energy and introduced a policy for electricity storage to facilitate the smooth integration of RE.
These proposals signal GoI’s intention to promote RE, green infra and sustainable practices to ensure long-term environmental and economic health. It also underscores its commitment to inclusive development and economic resilience. One is optimistic about this budget’s potential for India’s future as we navigate the path to becoming a developed nation by 2047.
