What can the start-ups in India expect from country's Union Budget 2022-23?

Indian Prime Minister Narendra Modi declared that January 16 will be celebrated as 'National Startup Day' annually as he pushed forward the Make in India initiative to encourage companies to develop, manufacture and assemble products in India.

PM Modi termed startups the "backbone" of new India and the engine that will power the nation's economic growth.

The Make in India initiative is also focused to incentivise dedicated investments into manufacturing. But how the startups will be benefitted from India's Union Budget 2022-2023. Here's a report:

Add WION as a Preferred Source

India's Finance Minister Nirmala Sitharaman will present the Budget 2022-23 on February 1 and the startups have urged the government to relax the tax burden amid the coronavirus (COVID-19) crisis.

ALSO READ |Halwa ceremony: Coronavirus forces India to drop a customary tradition ahead of Budget 2022 presentation

From this year's Budget, people would be expecting tax exemption along with policies that are startup-friendly.

The policies should be such that can help the entrepreneurs to invest in innovation, research and development. There is a need to promote the ease of doing business and reduce compliance costs.

Companies would also be expecting subsidies, especially in the electronic vehicle sector, experts have claimed. There would also be expectations that the government will expand the startup and Made in India initiative. The move will help home-grown brands grow in Indian markets, reducing dependency on imports.

ALSO READ |India's Union Budget 2022 will be available on mobile app: Here's how to download on Android and iOS

India's startup sector is one of the shining examples of the Indian economy over the past two years. Going forward, 2022 is supposed to be even more optimistic, with more hopes for the startup ecosystem.

Watch WION's analysis:

To give a broader perspective, here are some other examples. As quoted by India-based ABP news, Abhishek Pathak, who is the founder and CEO of Greenwear said, "I expect the budget to lay down a 5-year plan to increase participation/usage of renewable energy resources by decentralized small industries and craft sector."

"The government should ensure growth in procurement from start-ups working with renewable energy resources. The textile industry alone has the potential to reduce carbon footprint by a huge margin along with creating jobs at the local level," he added.

The mentioned news channel also quoted Pankit Desai, who is co-founder and CEO of Sequretek that is a Cybersecurity company, said, "For startups, the fundamental issue continues to be ease of doing business and helping ease cash flow challenges."

During his recent address, the Indian Prime Minister said that the start-ups are going to be the "backbone of new India" and when the country will complete 100 years of independence, start-ups will have an important role.

PM Modi had said that country's innovators are making the country proud globally.