Jan 14 (The Street Press) – On February 1, 2021, Finance Minister Nirmala Sitharaman will unveil a unique budget aimed at supercharging India’s economy. Stay tuned for live updates on what to expect from this important budget announcement!
Live Updates on Budget 2021 Expectations for MSMEs and Startups
Dr Vivek Bindra, Founder & CEO, Bada Business, says, “Despite the economic crisis created due to the COVID 19 outbreak, the Indian industry and particularly the MSMEs and startup sectors have shown remarkable resilience and innovation in overcoming the challenges. Indian startups managed to raise over USD 9 billion in investment deals this year despite the demand and fund crunch. Having said this, the government can provide further policy support to tide over the recessionary phase. Given the fact that this is the first budget in the post COVID, the industry is hoping for concrete measures to revive the economy, ways to increase consumer demand particularly in sectors that were hit hard by the Covid crisis . Through the budget, the government must find ways to infuse more liquidity into the system, leave more money into the hands of consumers and further ease the process of fund disbursement to MSMEs. As India aspires to become a vishwaguru and one of the engines of the global economy and India’s economic revival is critical to the global economy as well. Over the past year, the Government has created hope in the economy through its Aatm Nirbhar Bharat initiative that seeks to boost local manufacturing and production. The manufacturing sector needs significant policy support if it is to attract a chunk of manufacturing projects moving out of China.. The Government must create a competitive tariff structure that favors imports of raw materials over imports of finished goods. It must also find ways to boost a wave of new micro enterprises in rural India to create more employment opportunities outside agriculture. Building the entrepreneurial capability of rural youth through business training, easing the norms to start businesses and creating a fast loan disbursement mechanism for micro enterprises in villages can help infuse a new entrepreneurial energy in villages. It is high time that the GST structure is made less complex and ease of taxation is improved particularly for MSMEs to make tax compliance easier and simpler. Job creation must be another top priority. The Government needs to infuse more infrastructure based activity in both the rural and urban economies to generate more work opportunities. To revive growth and create jobs the Government needs to infuse more infrastructure based activity in both the rural and urban economies. Importantly, effective mechanisms must be created to evaluate the effect of relief packages on the ground.”