Reducing the TDS rate for e-commerce operators from 1% to 0.1% was a necessary step. This change will benefit vendors on platforms like Flipkart, Amazon, Swiggy, and Zomato by freeing up working capital. This proactive measure will financially support e-commerce companies, enabling innovation and growth. 

The removal of angel tax is a welcome move for India’s startup ecosystem. This, coupled with the establishment of a ₹1,000 crore VC fund for the space economy, will foster innovation. The budget’s focus on manufacturing, with the introduction of plug-and-play industrial parks, is progressive. MSMEs will benefit significantly from the credit guarantee scheme, new assessment models by PSU banks, and increased Mudra loan limits.

The recent $7 billion funding raised in H1 2024 showcases promising growth potential. To further accelerate this momentum, the elimination of the Angel Tax on startups would be a welcome move as it can increase domestic capital formation and ease of doing business. 

Corporate India is eagerly anticipating the upcoming budget, hoping it will t will continue to prioritize infrastructure development, which is crucial for sustained economic growth. They also seek increased support for MSMEs, recognizing their role in job creation.

In retrospect, the PLI schemes represent progressiveness that has spurred economic growth, making the economy more resilient post-COVID-19. Further efforts are required to streamline the criteria for selecting industries and to enhance benefits for MSMEs 

Simplifying regulations, offering tax incentives, and investing in infrastructure can enhance efficiency and enable startups to compete on a global scale. Establishing specialized incubators, accelerators, and strong export support will provide these startups with the necessary resources, mentorship, and market access to thrive.

The other bump up in capex could come from expansion of the scope of PLI scheme, which is now spreading among 13 manufacturing sectors. Since the government is still seeing a significant jump in private sector investment, it feels PLI schemes have the potential to act as accelerators for those as well as to pull in high quality job creation.

There is a need to expand the scope of the PLI scheme. By including labor-intensive sectors and those with strong linkages to MSMEs, PLI scheme could be a game changer for the manufacturing industry in India as it fosters innovation and will drive exports and employment generation.

India’s MSMEs are the backbone of our economy. Micro-enterprises lead the charge, accounting for nearly 98% of Udyam Portal registrations. These are the engines of job creation and technological innovation, fostering incremental growth. They are essential for economic development, providing vital employment opportunities.

The rise of digitization in procurement presents a unique opportunity for the automative industry to achieve greater efficiency, cost optimization and agility. By embracing these advancements, companies can build more resilient supply chains, strengthen relationships with suppliers, and accelerate innovation.