The Union Budget, presented by Finance Minister Nirmala Sitharaman, is a testament to the government’s commitment to realizing India’s dream of developed economy status by 2047. This Budget, an extension of the Interim Budget presented in February 2024, is a pragmatic and balanced financial blueprint that sets the right priorities for the nation’s growth. One of the most commendable aspects of the Budget is the abolition of the angel tax for all classes of investors.
This move is set to invigorate India’s start-up ecosystem, attracting more individuals to embark on their entrepreneurial journeys. By encouraging innovation and fuelling the risk-taking abilities of our young entrepreneurs, the government is paving the way for a vibrant and dynamic start-up culture. Further bolstering the entrepreneurial spirit, the government has doubled the limit of the collateral-free Mudra loans from to Rs 20 lakh from Rs 10 lakh for entrepreneurs who have successfully repaid their loans.
As a representative of the biotechnology and pharmaceutical sector, it is heartening to see that Research and Innovation are among the key priority areas for this government. The proposal to devise a mechanism to spur private sector-driven research and innovation at a commercial scale, backed by a financing pool of Rs 1 lakh crore, aligns perfectly with the announcements made during the Interim Budget. Moreover, the setting up of the ‘Anusandhan National Research Fund’ will support basic research and prototype development in universities, colleges, research institutions, and R&D labs.
This focus on research and innovation is a promising step towards fostering a culture of scientific discovery and technological advancement in the country. It is a clear signal that the government recognizes the critical role of Science and Technology in the nation’s development.
The Budget also focused on employment generation, skilling, entrepreneurship, and the startup economy. In a country with the world’s largest and youngest workforce, India needs to create more skilled jobs and shift a greater proportion of its workforce into higher productivity sectors to sustain its economic momentum and achieve consistently high GDP growth.
To address this crucial need, the FM has allocated Rs 2 lakh crore over the next five years with the aim of benefiting 41 million youth. The scheme to provide internship opportunities in the Top 500 companies for 10 million youth over the next five years is a very smart. Moreover, 21 million youth are expected to benefit from the employment-linked incentive for first-time employees.
Incentives for businesses, notably those in manufacturing, upgradation of 1,000 Industrial Training Institutes, as well as subsidised loans for higher education will go a long way in laying a solid foundation for a future-ready workforce.
Kiran Mazumdar Shaw
Executive Chairperson, Biocon and
Biocon Biologics