The Union Budget 2019 Analysis

The Union Budget for 2019 was released recently. It turned out to be explicitly welfarist for entrepreneurs. Some of the incentives include: incentivising electric vehicles to motivate EV start-ups, aiding foreign direct investment regulations into multiple start-up divisions, introducing significant upgradations to electronic payment services and a TV show designed to promote entrepreneurship. Mrs.Nirmala Sitharaman, the first woman finance minister of India, said that the TV Show would be aired on Doordarshan and would be an attempt to ignite discussions between successful entrepreneurs and developing startups.Additionally, the minister has proposed 100% FDI in insurance intermediaries, a group where the highest number of digital businesses reside. Besides this development, the government has allowed 100% FDI in single brand retail. This will be advantageous for start-ups like Urban Ladder, Pepperfry, HomeLane and Livspace.Other measures to organise labour laws, education and rental house will reinvigorate entrepreneurship.

The finance minister said that labour laws would be streamlined into four labour laws. This would thus make the process of registration and filing of returns efficient. The ‘Start-up India’ scheme, launched in 2016,to promote entrepreneurship among women and isolated parts of the society, is anticipated to extend till 2025.Sitharaman also stated that to legitimise female entrepreneurship , Women SHG Interest Subvention Programme would to stretched to all the districts in India. There is an expected purge in GST and Income Tax for electric vehicle manufacturers and its owners.”The valuation of Category II AIF funds (Real estate funds, private equity funds (PE funds), and funds for distressed assets are registered as Category II alternate investment funds, or AIFs) will be out of I-T scrutiny”, the finance minster proposed in her Budget Speech

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