Union Budget 2022-23: Indian startups, MSMEs seek measures aimed at job creation

Many experts involved with the sector expect Finance Minister Nirmala Sitharaman to announce some relief measures in the upcoming budget to boost the startups.

The startup sector has a host of expectations from the government in the upcoming Union Budget 2022-23, including some tax measures and rationalisation of Goods and Services Tax (GST).Many experts involved with the sector expect Finance Minister Nirmala Sitharaman to announce some relief measures in the upcoming budget to boost the startups. This is because they believe that focus on the sector can lead to higher job creation.

Abhishek Gagneja, Founder, Yoga Brands, said the budget must look to rationalize Goods and Services Tax (GST) compliance, costs of compliance, and expedite the IP and trademark approval issues as these factors hinder the growth of start-ups and MSME.

Higher direct tax, short term and long term capital gains require simplification and revision in the upcoming budget for ease of doing business, Gagneja added.ASSOCHAM secretary general Deepak Sood said world leaders are also taking note of India's impressive startup movement, with 80 unicorns, and over 60,000 registered Startups.

BUDGET NEEDS TO ADDRESS LIQUIDITY, CREDIT CRUNCHMultiple issues related to the liquidity and credit crunch continue to worry the startup sector and MSMEs.

Pankaj Sharma, CEO of Religare Finvest Ltd, said, “The Reserve Bank of India (RBI) announced schemes like the TLTRO, ECLGS and PCGS to benefit the MSME sector, but the implementation of these schemes left much to be desired and hence the benefits did not percolate down to the lowest denominator, thereby denying the benefits of the schemes to a substantial chunk of the MSME sector."

In Budget 2022, the government must take measures to meet MSME lending requirements, subsidizing the cost of funds to NBFCs (irrespective of their size and rating) that focus on lending to small merchants for loans as that will be a way to ensure easy access to credit, Sharma added.The dietary supplements sector is expecting that the government will rationalise GST on healthcare supplements from 18 per cent to 5 per cent in the upcoming Union Budget 2022, said Praveen Chirania, Founder, Muscle and Strength India.India is home to over 5000 health-centric startups and to support the domestic healthcare infrastructure, the government should consider tax exemptions on funds received and a GST reduction to 3 per cent from the existing 18 per cent, Rohan Verma, Co-founder and CEO, Breathe Well-being, said.

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