Union Finance Minister Nirmala Sitharaman, presenting her first budget, made a bunch of announcement to encourage startups and reform the micro, small and medium enterprises (MSME) sector.
Sitharaman proferred a dedicated TV channel to promote startups in the country.
“We propose to start a television program on @DDNational exclusively for startups. This shall serve as a platform promoting discussing an issue affecting their growth matchmaking with VC, funding and tax planning,” said Sitharaman.
This channel will be designed and executed by startups themselves, she added.
— PIB India (@PIB_India) July 5, 2019
To ease angel tax for startups, she said startups and investors who provide requisite documents will not be subject to Angel Tax assessment.
Still, several startups complain about getting harassed by tax department over Angel Tax.
The FM further talked about the government flagship program Standup India, that supports entrepreneurship among women and SC & ST communities.
The initiatives have uplifted thousands of women entrepreneurs across the country and will the program will continue till 2025, she said. Talking about MSMEs, the FM emphasized on to open payment portal to eliminate payment delays for MSMEs.
Government payments to suppliers and contractors are a major source of cash flow especially to MSMEs, she said. loans of up to Rs 1 crore will be granted to MSMEs within 59 minutes through a dedicated online portal, she added.
The govt has time and again emphasized the importance of the growth of MSME sector. At present, it contributes about 30% to GDP, which is expected to rise to 50% in the coming years.
MSMEs sector contributes one-third to India’s manufacturing output and 45% to exports.