The release of the Union budget on the first of February was a boost for budding entrepreneurs in various sectors, the priorities being formalisation, urbanization and industrialization.
- Rs. 3,794 crore capital support and industry subsidy will be allocated for the ‘Micro, Small and Medium Enterprises’ sector by 2022. The lowering of the corporate tax rate to 25 percent for companies with up to Rs. 250 crore turnover will also contribute to foster entrepreneurship as well as employment creation. The existing provisions that provide certain tax benefits to Start-ups that are businesses which are technology and innovation-oriented, has now been broadened to include any business with a high potential for employment generation or wealth creation.
- Doubling the budget of Digital India, the government proves its commitment towards digitalisation. India will soon join a select league of countries involved in research on the fifth-generation or 5G technology that will allow inexpensive, faster and reliable communication and a testing centre will be set up by the department of telecom in partnership with IIT Madras. This team led by IIT Madras might pave way for numerous startups.
- The EPF rate has been reduced to 8.33% which steers towards more employment opportunities, especially for women. The minimum support price for kharif crops has been escalated to 1.5 times the farmer’s cost of production, which widens opportunities in the agricultural sector for emerging young minds.