The Modi 2.0 Government has set forth an ambitious target to make India a $5 trillion economy in the next 5 years. To achieve this we need to spur consumption I a big way while increasing investments in infrastructure. This will call for a fine balance between tax collections and incentives. From my perspective, the focus on start-ups ad MSMEs should be a focus for generating employment as well as driving GDP growth.
The start-up policy could expand to include all start-ups in any employment generating sector with funding from any source, including bootstrapped and not need specified investors to qualify as a Start-up. Expansion in Mudra loan disbursals would go a long way in generating a new breed of self-employed who will add to the economy while generating jobs. Skill India should get greater allocations and be taken to mission mode.
Start-ups investing in education and skill development of all kinds should be given incentives and tax breaks. While we cannot expect major changes in GST or income tax, some relief in Standard Deduction or tax slabs for the salaried middle class could spur consumption. Doing away with LTCG could further drive the sentiment in the stock market leading to greater value being unlocked.
Digitisation and digital India needs greater push and incentivisation.
Sabyasachi Mitter is the founder and managing director of Fulcro
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