A Pro-startup Sector Approach: Expectations From Union Budget 2023
The Government of India has taken a lot of steps in the last few years that have benefited the economy at large and the startup ecosystem in particular. The revolution that started with ‘Startup India’ initiative has been given a boost through efforts towards digitization, innovation support, ease of doing business, FDI policies, and funding support for the startups. Further, the rise of ‘Make in India’, and emergence of home-grown startups aiming to create platforms and solutions that are bringing about a sustainable change in lifestyles has made things a lot more positive for the economy.
Today, when the world is staring at the risk of another pandemic wave, and an almost imminent global recession, the government needs to continue and expand the good work. Policies, initiatives, guidelines and financial steps that boost evolution of startups aiming to achieve sustainable growth, will not only help create more economic output, but also benefit the overall life quality and productivity of the 1.4 billion Indians. The masses are already looking for such solutions and support as indicated by respondents in a survey conducted in December 2022. About 71 per cent of the metro city respondents across India showed inclination of buying green products in 2023 and beyond. This augurs well for the national plans to boost sustainability too. The government must capitalise on the opportunity by encouraging startups in this arena. Here are some of the key areas that need to be focused on through the upcoming Union Budget.
Sustainable nutrition – A plant-based diet is known to provide holistic nutrition. However, most of the people have not been able to adequately enjoy the benefits of pure green diets. Concerns about higher cost as such plant-based organic foods are typically considered a luxury, and lack of awareness about the nutritional options, have to be eliminated through sustained information sharing and support for companies manufacturing green nutrition products.
Environmental impact of food production – Sustainability in food production is a critical need today. By helping develop smart technologies that help in increasing the output of agriculture without adding carbon footprint or bringing more forest land under farming coverage, the government can reduce the environmental impact of food production.
Purity – The plant-based nutrition companies are actively focusing on purity of the ingredients and processes involved. Nowadays, it is no longer difficult to find high-quality and nutritious food items that don’t contain any artificial preservatives, colours, flavours or sweeteners etc. Thus, the overall impact of the plant-based food products is cleaner and safer for the consumers. Companies that manufacture such products, and ecommerce platforms retailing sustainable food and other eco-friendly lifestyle products should be provided benefits like tax incentives, lowering of GST (goods and services tax) on green products, and reduction of customs duty on import of green food products and ingredients.
Holistic lifestyle changes – Focusing on green startups will be beneficial not just for the environment but also for the overall health and well-being of human beings. Usage of furniture and home items made out of recycled wood, metals and fabrics has the potential to drastically reduce the impact of these industries as well. Similarly, 100% natural beauty and personal hygiene products also prove to be more environment friendly and safer for consumers than the products that contain chemicals. GST benefits to startups manufacturing such products would encourage more companies to enter the segment.
Supporting platforms showcasing green products – There are green marketplaces today which are emerging as the go-to place for consumers looking for healthy and clean products and manufacturers making them. This is where there is a need to enable such platforms through tax incentives and other policies that can propel them to spread their services to a larger consumer base.
Conclusion
The Government of India has been revolutionising the manufacturing sector, and startup economy through its efforts. By providing budgetary allocations that lead to continuation of existing schemes and expanding the horizon through new initiatives and tax benefits etc, it is possible to not only unlock greater economic output from the startups, but also boost sustainable development in the country!
