The 2016-17 budget has been described as rural-leaning and beneficial for small businesses, gives budding entrepreneurs a reason to smile. The announcement during the budget speech that the Companies Act will be amended to enable the registration of companies within a day was cheered by many. This will give start-ups a chance to launch business operations with minimum delay. It also is a way to cut the red tape that entrepreneurs must deal with while setting up their businesses.
The budget had several proposals that are expected to boost business opportunities. For instance, a proposal was made to offer tax exemptions for small business with turnover of up to INR 2 crore. A hub has been planned to support entrepreneurs from the scheduled caste (SC) and the scheduled tribe (ST) communities. Tax breaks and incentives for new manufacturing units have been promised, while corporate income taxes imposed on such companies were lowered from 30% to 25%.
So, if you plan to start a business, now would be a good time to begin.
But what are the kinds of new businesses that stand to gain the most from the budget? Here’s a list that can get you started:
Start a dialysis center:
The finance minister, Arun Jaitley, announced duty exemptions on certain parts of kidney dialysis equipment. The exemptions would strengthen the National Dialysis Service Program, which would be funded through a public-private partnership (PPP) under the National Health Mission. Private dialysis centers, which are growing at a CAGR of 15%, can see growth rates rise by an additional 2-3%.
Start a Shop:
Shops can now remain open on all days of the week across markets. But do ensure you follow all the labour laws to the tee!
Start an Infrastructure-Building Business:
The government announced that it plans to spend a total of INR 97,000 crore on roadways in 2016-17. Around 10,000km of national highways will be awarded in the fiscal year. So, it certainly seems like the right time to get into infrastructure building industry.
Start an Organic Farm:
The total allocation for agriculture and farmer welfare under the 2016-17 budget is INR 35,984 crore. Additionally, 28.5 lakh hectares will be brought under irrigation by the government. Under the Pradhan Mantri Fasal Bima Yojana, the highest ever compensation in case of crop loss will be disbursed. The government will also subsidize farm loan repayment. A uniform agriculture e-market platform will be launched to provide a common platform for wholesale markets. The government also plans to double the income of farmers in the next five years.
Start Supplying Parts and Services to Airlines:
The central government will join hands with state governments to revive small airports in order to increase connectivity. This means established airlines will fly to more locations than ever before.
Start an ATM Servicing Business:
The government plans to increase the number of ATMs and micro-ATMs at post offices in the next three years. Service providers will have an opportunity to grow as the demand for their services grows.
The budget’s focus on creating opportunities at the level of small to medium-sized enterprises is encouraging for those planning to start new businesses. This will go a long way in inspiring people of the country to set up new businesses.