Government may provide budgetary measures to strengthen startup environment
According to official sources, the government is anticipated to announce in the upcoming budget measures to further enhance the startup environment in the nation and fix inverted tariff difficulties in several industries to support local production.
The Budget, which will be delivered on February 1, is anticipated to include announcements of fiscal incentives under the Production Linked Incentive (PLI) program to a few additional industries.
Additionally, they claimed, the government may think about funding infrastructure projects that have been authorized by the Network Planning Group (NPG), which was established as part of the PM Gati Shakti program.
The Gati Shakti – National Master Plan was introduced by Prime Minister Narendra Modi on October 13 of last year with the intention of creating integrated infrastructure to lower logistical costs.
For unified planning and integration of the ideas, the NPG is represented by representatives from several connectivity infrastructure ministries and agencies, including their heads of network planning division.
Before creating a DPR (detailed project report) during the planning stage, all of these department’s first request clearance from the NPG.
Inverted tariff structures charge inputs more heavily than completed goods, which leads to credits building up and cascading costs.
A number of actions have already been done by the government to encourage startups in the nation. Fund of Funds for Startups (FFS) scheme, Startup India Seed Fund Scheme (SISFS), and Credit Guarantee Scheme for Startups (CGSS) are implemented as part of the Startup India initiative to offer funding at different phases of a startup’s business cycle.
In order to foster innovation and encourage private investment in the startup ecosystem, the government established the Startup India program in January 2016.
“The commerce and industry ministry has suggested steps to further promote ease of doing business for startups,” one of the sources said.
