Budget 2023 Will Provide Significant Support To India's Startup Ecosystem : Piyush Goyal

According to Commerce and Industry Minister Piyush Goyal, measures included in the Budget, such as extending the period of incorporation for eligible aspiring entrepreneurs for the purpose of giving tax incentives, would significantly help to boost the country's startup ecosystem.

In order to provide tax incentives to support aspiring entrepreneurs, the government on Wednesday proposed to extend the period of incorporation for eligible startups by an additional year, until March 31, 2024.

Nirmala Sitharaman, the minister of finance, has also suggested relaxing rules for startups by extending the ability to carry losses forward for ten years. According  to Mr. Goyal, from the launch of the Startup India initiative, the government has continually supported the startup ecosystem, and the startup ecosystem in India has grown significantly. Accordingly, the minister told a news agency, "So my sense is that this (Budget) will certainly give a lot of support and help to the startup ecosystem so that it flourishes in the years to come,"

He said that Budget 2023 also put a lot of emphasis on encouraging new businesses in the agricultural industry, creating "agri-preneurs," and giving them encouragement to develop better concepts for cold storage facilities, food processing, and value addition in the agricultural sector. In her address on the budget, Sitharaman said: "I propose to extend the date of incorporation for income tax benefits to startups from March 31, 2023, to March 31, 2024.

I further propose to provide the benefit of carrying forward losses on change of shareholding of startups from seven years of incorporation to ten years".   The finance minister said that the government will establish an Agriculture Accelerator Fund  (AAF) to support Agri-startups by young entrepreneurs in rural areas. In order to facilitate inclusive, farmer-centric solutions, a digital public infrastructure for agriculture will also be established. The government extended this till March 31 of current year in the budget from the previous year. For three consecutive years out of the first ten years following incorporation, tax incentives have been offered to eligible businesses founded before March 31, 2023.

Startups that were incorporated on or after April 1, 2016, may seek an exemption from paying income taxes. For three consecutive years out of the first ten years following incorporation, recognized startups that receive an inter-ministerial board certificate are free from paying income tax. In order to encourage startups in the nation, the government has taken a number of actions. The 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 programme to offer funding at different stages of a startup's business cycle.