April 20, 2024

Union Budget 2023 | How startups reacted to the Budget

4 min read

New Delhi (India), February 10: Union Finance Minister Nirmala Sitharaman presented the last full budget of the second term of the Narendra Modi government in Parliament on February 1.

Here’s what experts, industry insiders have reacted from this year’s Budget.

1. Mr. Ajit Patil, Co-Founder/ Managing Director of DeepTek

Comments on the Union Budget 2023:

The AmritKaal Budget of 2023 provides for infrastructure development with a capital investment of approx. 10 Lakh Crores which will surely enable growth and employment across industries. On the other side, the budget was balanced in terms of focus on the healthcare industry with various initiatives such as: 

(i) Establishing Centres of Excellence for Artificial Intelligence by setting up three Centre of Excellence (COE) in top educational institutions with a vision of “Make AI in India and Make AI work for India”. This will surely boost the importance of artificial intelligence in the healthcare sector; 

(ii) Opening doors of ICMR labs for research by public and private medical college faculties and private sector R&D teams; 

(iii) To encourage the pharma industry to invest in research and development in specific priority sectors; 

(iv) Diagnosis and eradication of Sickle Cell Anaemia by 2047 etc. 

Focus on Start-up Ecosystem: The Union budget was also focused towards boosting innovation and setting up more start-ups by providing an extension to the date of incorporation for income tax benefits to start-ups from 31st March 2023 to 31st March 2024. Further, the budget has enabled start-ups to carry forward and setoff of losses even after the change in shareholding up to 10 years as against the current period of 7 years from the date of incorporation. The increase in focus on AI in Healthcare will result in more startups in the AI space. 

Setting up of the Agriculture Accelerator Fund will encourage Agri Start-ups by young entrepreneurs in rural areas. This initiative aims to bring competitiveness in terms of technology used in agriculture and reduce dependence on imported machinery in Indian farms. 

Individual Taxation: Further, the union budget provides for relaxations for middle-class individuals with major announcements by increasing the limit of rebate in the new tax regime up to 7 Lakhs and providing for lower slab rates. This will motivate them to continue with the new “default” tax regime. 

Overall the budget seems to attract more ideas and innovation in the space of healthcare AI with due support from the government.

2. Ms Pooja Nagdev, Founder, Inatur

The vision of growth that the government has carried over the last few years is evident from the progressive budgets that it has delivered and the resultant growth. This growth has been visible not just in the economy but also in disposable income of consumers and improving standards and conditions of living. The government has maintained this outlook and mindset and delivered a dynamic and progressive budget that boosts the economy at micro and macro level. The onus of e-commerce and rapid transactions through e-wallets specifically helps industries like beauty and cosmetics. The government seems to have this game in control. The further growth of the micro and small scale sector that generates both income and employment will help in the economy as well.

Boosting women empowerment through entrepreneurship is welcomed and appreciated, especially in the beauty, cosmetics and wellness sector. Through the promotion of Indian manufacturing and Make in India, the Indian economy will be increased since these factors play a significant role in the Indian economy.

3. Mr Ankur Maheshwary, Founder, Mastiii Zone

In the Union Budget 2023 Finance Minister NirmalaSitharaman, mentioned that the promotion of tourism was going to be taken up as a mission. She recognized the sector in creating jobs and opportunities for the youth. She added that in a bid to boost the sector, 50 tourist destinations would be chosen to be developed into a whole package for domestic and international tourism. Apart from this, states will also be encouraged to establish a Unity Mall in the respective cities or in the most popular tourist destination to promote and sell ‘One District, One Product’ and GI products. In my view these initiatives would give a huge boost to the Amusement industry. Theme based amusement facilities could be created in these locations which could make these tourism spots even more wanting to be visited. I also expect that the change in tax regime announced in the Union Budget will result in more disposable income in the hands of middle-class consumers – which I expect ultimately will spur consumption in activities like amusement. Regional connectivity will see a boost with the plans to renew 50 additional airports, helipads, water aero drones and advanced landing grounds.

4. Ms Shruti Kaushik, Author, Startup Evangelist and Entrepreneur

The latest union budget 2023 has all the positives for the startup community. It’s curated to build a stronger startup ecosystem in India; most importantly for nurturing innovation and encouraging the private investments ratio. The initiative will be significant in catalyzing startup culture and in building a more inclusive and prosperous ecosystem that will in totality assist innovation and entrepreneurship growth in the country. Benefits like easy compliance and an extended period to carry forward losses will definitely help founders to work more with ease and focus on long-term growth. This step will also encourage startups to take additional and needed steps like branding, financial management, and growth strategy into full effect.

5. Mr Raghav Belavadi, Founder & CEO, Hype Luxury

Green movement and green growth has seen a boost, Innovation and AI readiness is seeing big traction which is really good and Investment towards energy transition, net-zero objectives is really a positive sign of growth. Income tax brackets are a relief for the working employees category. The custom duty is increased for imported vehicles (including luxury cars) which may impact the sales and growth.

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