Budget 2019: How Nirmala Sitharaman’s maiden budget will boost rural economy through startups, SMEs

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Updated: July 8, 2019 12:23:31 PM

Union Budget 2019 India: The launch of a television channel for startups “to promote them, discuss growth issues, matchmaking with venture capital (investors) for funding and also for tax planning” is expected to encourage more entrepreneurs from tier-II and tier-III cities.

Budget 2019, Union Budget 2019 India, Budget 2019 India, Budget 2019-20Budget 2019 India: Overall, the budget is pro-poor, pro-rural, and pro-ease of doing business.

Budget 2019-20: The budget presented by finance minister Nirmala Sitharaman talked about startups and small businesses more than one would have expected. PM Modi government, previous and current, have been in constant dialogue with the industry bodies, associations and members for easing regulatory compliance and other conducive measures to be adopted to boost self-employment particularly in semi-urban and rural areas that are at early stages of being digitally influenced. Hence, the budget spotlighting startups and small businesses seems to be striking the right chords.

“With its focus firmly on accelerating country-wide development, the budget focused on a slew of measures for the rural sector, SMEs and startups. The measures for the rural sector including better infrastructure and road connectivity will boost consumption and make rural markets more accessible to modern retail,” said Kumar Rajagopalan, CEO, Retailers Association of India.

Overall, the budget is pro-poor, pro-rural and pro-ease of doing business. The simplification of the GST, the simplification of tax reforms and indirect taxes and the support to startups is all dovetailed towards ease of doing business, added Rajagopalan.

Also read: Budget 2019: From Krishi Darshan to Startup Darshan: A dedicated TV channel for startups

Nirmala Sitharaman stressing on the ‘Gaon, Garib and Kisan’ in the budget aims at enabling the rural economy through multiple schemes being highlighted in her speech. “The various schemes announced by the finance minister like Pradhan Mantri Matsya Sampada Yojana, cluster-based rural industrialisation for promoting 50,000 artisans, 75000 skilled agri entrepreneurs, overall focus on dairy sector, developing 10,000 new farmer producer organisations and zero budget farming are all very laudable,” said Dr H K Bhanwala, Chairman, NABARD.

Interestingly the launch of a television channel for startups “to promote them, discuss growth issues, matchmaking with venture capital (investors) for funding and also for tax planning,” as said by Nirmala Sitharaman in her budget speech is expected to encourage more young and aspiring entrepreneurs from tier-II and tier-III cities.

“This programme will be run by startups themselves that will help the new and emerging entrepreneurs of tier II and tier III cities,” said Vinay Singhal, Co-Founder & CEO – WittyFeed adding that the government has focused more on the ‘Bharat’ to build 80 livelihood incubators, 20 tech incubators to help create 75,000 skilled entrepreneurs in agriculture and rural industry.

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