Union Budget 2024: Amazing Benefits for Start-ups and Small Businesses

Heading 2: Union Budget 2024-2025: Key Takeaways for Businesses and Start-ups

Indian budget for 2024-25 has brought about phenomenal changes in the economic outlook of the nation. The finance ministry has drafted the budget keeping in mind the needs of all the crucial sectors of the economy. Take a look at the significant advantages that the 2024-25 financial budget offers to businesses.

1) Change in tax structure

To promote investment and give a boost to start-ups, the government has abolished the Angel tax which poses a great challenge for emerging start-ups. Measures are also adopted for the rationalization of GST and customs duties structure. Moreover, there has not been a significant change in the tax slabs for the businesses.

2) Foreign companies

The government has cut down the corporate tax for foreign companies from 40% to 35%, to promote the arrival of foreign companies in India. Moreover, it has also eased the norms for FDI (Foreign Direct Investment) and has streamlined the process of FDI. These measures have been adopted to give India a competitive edge in the world economy and also give a technological boost to the Indian industries. The budget is also aimed at promoting the Indian rupee as currency for overseas investments.

3) Development of infrastructure

The prime focus of the budget 2024-25 is the development of infrastructure across the country. The government has allocated an amount of ₹11,11,111 crores to the development of infrastructure. An additional ₹2.66 Lakh crore is allotted to the development of rural infrastructure. Development of infrastructure in both, Urban and Rural areas, will give a boost to the businesses and provide them with better infrastructural facilities and hence, streamline their process and expand to the rural area as well.

4) Improvising transportation

A wholesome amount has been allotted to the development of roadways, railways, and airways. ₹2.55 lakh crore has been allotted to the development of railways by building railway corridors, enhancing connectivity, and developing railway infrastructure. Moreover, ₹2.76 lakh crore has been allotted to the development of roadways to improve the connectivity to the remote areas and develop the fair weather roads. The finance minister also announced Phase IV of PMGSY (Pradhan Mantri Gram Sadak Yojna) to provide road connectivity to 25,000 rural habitations. The improvement in transportation facilities will give a boost to businesses as their movement across all modes of transport will become quicker, easier, and cost-effective.

5) Increase in digital infrastructure 

he budget has been directed towards prioritizing the promotion of digital learning and the advancement of AI-driven health infrastructure. This strategic allocation is anticipated to substantially benefit businesses that are heavily reliant on technology for their operations.

6) Support to women

The current budget has laid a significant emphasis on women's empowerment. It has provided funding to women's educational and skill development programs like Samagra Siksha. Moreover, it has also funded new initiatives like the Namo Drone Didi scheme, which trains women inoperative drones for agricultural purposes. This boost to women's empowerment will lead to the entering of women into the corporate sector and will prove to be a boosting phenomenon for various businesses and industries.

7) Development of agriculture and allied industries

This budget has focused centrally on agriculture and allied activities. The agriculture Credit target has been raised to ₹20 lakh crore. There has been a strong focus on post-harvest management wherein focus has been on the development of storage and warehousing facilities. The budget has also laid a focus on the development of the dairy industry. The development of primary industries would automatically boost secondary as well as tertiary industries. 

8) Growth of green energy initiatives

The government has laid focus on the development of renewable sources of energy, thus boosting the businesses involved in the process. A budget of ₹10,000 crore has been allocated for solar power and rooftop solar initiatives. Apart from this, significant focus has been laid touse of Electronuc vehicles, promoting the manufacturers, dealers, and sellers of EVs. 

8) Skill development initiatives

The budget has been focused on enhancing the skills of Indians and creating the character of employability. The finance minister has claimed to implement 3 schemes for employment and 1 scheme for skill development. About ₹20 lakh youth will be skilled by the end of 5 years. Loans of up to ₹7.5 lakhs will be given under the skill development program. Developing skills will enhance the availability of skilled staff for businesses across various industries.

9) Promotion of Innovation, Research and Development

The budget has emphasized research and development by increasing its funding. Investments have been made in emerging technologies such as AI, biotechnology, and renewable energy. Innovation hubs are established to support startups and develop new ideas. 

10) Development of street markets

A new scheme to promote 100 weekly markets or haats, every year will be launched. This will give an immense boost to the local markets and will improve the self-sustenance goal of the country. Moreover, street food hubs will also be established to encourage street food vendors and businesses.

11) E-commerce export hubs

The budget has introduced e-commerce export hubs as a Public-Private Partnership model. The main aim is to provide small businesses with a way to enter into the international market. It also aims to create employment in the e-commerce ecosystem. It is expected to have a positive impact on small businesses and also encourage foreign exchange in the country.

12) Financial support to MSME

Promoting MSME is of supreme importance and the budget has substantially catered to this requirement. A credit guarantee and credit support scheme has been launched to provide help during stressful times. The limit of “Mudrra Loans’  has been increased to ₹20 lakh from ₹10 lakhs. Moreover, Emergency Credit Line Guarantee Schemes and Atmanirbhar Bharat Abhiyan have also been promoted to help the MSMEs. This will give a major boost to small and medium-scale businesses and enhance the economic condition of the nation.

The Indian Budget for 2024-25 is transformative, with progressive measures aimed at fostering growth across various sectors. It includes substantial tax reforms and incentives for foreign investments, a significant boost in infrastructure and transportation, emphasis on digital infrastructure, women's empowerment, and skill development, and support for agriculture, green energy, and MSMEs. These initiatives lay a strong foundation for sustainable economic development.