Surat (Gujarat) [India], February 2: The Union Budget presented by Finance Minister Nirmala Sitharaman will boost the country’s financial investment ecosystem, believes chartered accountant, investor and mentor Prateek Toshniwal.
The budget for the fiscal year 2023-24 has redefined the landscape of capital investment in the country. The finance minister outlined the government’s commitment and the budget’s focus on seven priorities, which she described as Saptarishi.
“The financial sector is one of the priorities identified by the finance minister as the country embarks on the Amrit Kaal. Reforms undertaken by the government in the financial sector and innovative use of technology has led to financial inclusion at scale, ease of access to credit and participation in financial markets. The budget is a great one for capital investors and investment networks and I am confident it will fortify the country’s financial investment ecosystem,” said Mr Toshniwal.
In the budget, the finance minister also announced that a national financial information registry would be set up to serve as the central repository of financial and ancillary information to facilitate efficient credit flow, promote financial inclusion and foster financial stability. The FM also announced that public consultation would be brought to the process of regulation-making to facilitate optimum regulation in the financial sector, while a comprehensive review of existing regulations would be carried out to simplify, ease, and reduce the cost of compliance.
Mr Toshniwal, who has invested in several startups in sustainability, clean tech, consumer tech, artificial intelligence, healthcare, Web 3.0, agri tech, and other fields, said the budget will boost the startup space.
“India is already the third largest ecosystem for startups. The extension of the date of incorporation for income tax benefits to startups till March 2024 and providing startups with the benefit of carrying forward losses on change of shareholding of start-ups from seven years of incorporation to ten years will help startups and promote innovation and entrepreneurship,” he said.
The noted investor said that the revamped credit guarantee scheme, which will enable additional collateral-free credit of Rs. 2 lakh crore to MSMEs, will be a game-changer for the sector.
“India is expected to grow at 7% in the coming year, which is the highest among major economies. There are challenges but the budget has addressed many of those and I am confident it will boost economic growth and help the country return to the high growth path,” Mr Toshniwal added.