By Shilpi Saurav Sharan and Apalka Bareja
The most touted Union Budget of 2023-24 was announced by the Finance Minister, Ms. Nirmala Sitharaman on February 01, 2023. While the Budget has provided several reliefs to the Aam Aadmi, it also grants several reliefs and exemptions for enhanced manufacturing, providing impetus to green technology and mobility and also increased budget allocation for IPR ecosystem in India.
Reportedly, the budgetary allocation for IPR ecosystem has been increased to Rs. 328.981 Crore1 . As per the Union Budget2 documents, the Department for Promotion of Industry and Internal Trade (DPIIT) has been allocated a Budget of Rs. 8200.63 Crores as against Rs. 6257 Crores allotted last year. Various IPR related Schemes and programs and budget allocated to them are as under:
| Scheme/ Program | Budget Allocated |
| Start Up India Scheme | Rs. 30 Crores |
| Startup India Seed Fund Scheme | Rs. 160 Crores |
| Intellectual Policy Rights (IPR) Policy Management | Rs. 0.45 Crores |
Union Budget 2023-24- An Impetus to Science, Technology and Innovation
The Budget has allocated Rs. 16,361 Crores to the Ministry of Science and Technology, which is almost Rs. 2000 Crores more than the last Budget3 . Ms. Nirmala Sitharaman in her Budget Speech while remarking India as an innovative nation, stated that innovations will be promoted in several sectors like Agriculture, wherein Agriculture Accelerator Fund will be set-up to encourage agristartups. The Fund will aim at bringing innovative and affordable solutions for challenges faced by farmers. Similarly, a new programme will be launched to promote research and innovation in pharmaceuticals.
What the Budget has in store for Start-Ups?
To boost Start-Ups in India, Ms. Sitharaman, in her Speech stated that India is now the third largest ecosystem for start-ups globally and ranks second in innovation quality among middle-income countries. To promote and ease business environment in India, the Minister also proposed to extend the date of incorporation for income tax benefits to start-ups from 31.03.23 to 31.3.24 and also to provide the benefit of carry forward of losses on change of shareholding of start-ups from seven years of incorporation to ten years4.
The Union Budget has been progressive in several ways and addresses the monetary concerns faced by the Middle-Income Class group. It is noteworthy to see that India is giving impetus to innovations and has also increased budgetary allocation for Startup Seed fund by 20 Crores this year. It is expected that these initiatives will not only promote the IPR ecosystem in India but will also lead to increased investment and businesses in India.
HERE ARE THE KEY HIGHLIGHTS OF THE BUDGET:
THE ECONOMY IN NUMBERS
- India’s economic growth in the current year is estimated to be 7 percent, highest among all large economies
- The fiscal deficit in FY 2023-24 is estimated at 5.9 per cent of GDP
FOCUS ON MSME
- Credit Guarantee will be revamped starting April 1st 2023, through additional capital of Rs 9,000 Crore
- In Vivad se Vishwas I scheme cases of failure by MSMEs to execute contracts during the Covid period, 95 per cent of the forfeited amount relating to bid or performance security, will be returned to them by government
- Under Vivad se Vishwas II scheme, a voluntary settlement scheme with standardized terms would be introduced to settle contractual disputes of government and government undertakings
- An Entity DigiLocker will be set up for use by MSMEs, large business and charitable trusts
RESILIENCE AMIDST CRISIS
- In Covid-19 pandemic, the scheme to supply free food grains to over 80 crore persons for 28 months
AMRIT KAAL SCHEME
Focus on three things:
- Facilitating ample opportunities for citizens
- Second, providing strong impetus to growth and job creation
- Strengthening macro-economic stability
7 PRIORITIES FOR SAPTARSHI
- Inclusive Development
- Reaching the last mile
- Youth Power
- Financial Sector
- Green Growth
- Unleashing the Potential
- Infrastructure and Investment
- Inclusive Development
SABKA SAATH SABKA VIKAS INCLUSIVE DEVELOPMENT
- Building Digital Public Infrastructure
- ANB Horticulture Clean plant Program to be launched
- Making India Global Hub For Millets under Sree Anna
- Setting up Agriculture Accelerator Fund
- Targeted Funding
- Setting up of widely available storage capacity
LONGER TERM CAPITAL EXPENDITURE
- Capital Investment Outlay increased by 33% to Rs. 10 Lk Cr
- The ratio of capex-to-GDP, which rose to 2.7% in 2022/23, is estimated at 3.3%
- The National Green Hydrogen Mission was allocated Rs. 35,000 crores for priority capital investment towards energy transitions
NEW INCOME TAX SLABS
- 0-3 lakh- nil
- 3-6 lakh- 5%
- 6-9 lakh- 10%
- 9-12 lakh- 15%
- 12-15 lakh- 20%
- 15 lakh+ – 30%
INDIA@100 AND DEVELOPMENT IN IT
- For “Make AI in India and Make AI work for India”, three centres of excellence for Artificial Intelligence will be set-up in top educational institutions
- A National Data Governance Policy will be brought out to enable access to anonymized data
- The KYC process will be simplified adopting a ‘risk-based’ instead of ‘one size fits all’ approach
- One stop solution for identity and address updating maintained by various government agencies, regulators and regulated entities will be established using DigiLocker service and Aadhaar
- 39,000 regulations have been reduced and 3400 legal provisions have been decriminalized for ‘ease of business’
- PAN will be used as the common identifier for all digital systems of specified government agencies
- System of ‘Unified Filing Process’ will be set-up
- To encourage indigenous production of LGD seeds and machines and to reduce import dependency, a research and development grant for the IITs for five years
- A voluntary settlement scheme to resolve contractual disputes In government
- E-Courts for the efficient administration of justice of Rs 7,000 crores
GAMING
- 30 per cent tax on the “net winnings” from online games
- Threshold limit of Rs 10,000 for calculating the tax deducted at source (TDS)
- 30 per cent tax at the time of withdrawal of the winnings or at the end of the financial year
- 194BA for TDS of winnings from online games for online intermediaries
- 115BBJ for computation of taxes for those who earn income from winnings of online games
HEALTH, EDUCATION AND SKILLING
- One hundred and fifty-seven new nursing colleges will be established in co-location with the existing 157 medical college
- Mission to eliminate Sickle Cell Anaemia by 2047
- A National Digital Library for children and adolescents for accessibility of books
PRADHAN MANTRI AAWAS YOJANA
- Pradhan Mantri Aawas Yojana outlay hiked by 66% to Rs 79,000 cr
POWERS UNDER SEZ ACT TO BE DELEGATED TO IFSC AUTHORITY
- Decided to delegate powers under the SEZ Act to IFSCA
- Set up of a single window IT system for registration and approval from IFSCA, SEZ authorities, GSTN, RBI, SEBI and IRDAI
- IFSCA Act will be amended for statutory provisions for arbitration, ancillary services, and avoiding dual regulation under SEZ Act
- Acquisition financing by IFSC Banking Units of foreign banks to be permitted
ENHANCED SEBI’S POWER RELATING TO IMPROVE INVESTORS’ EDUCATION
- SEBI would be empowered to develop, regulate, maintain and enforce norms and standards for education in the National Institute of Securities Markets
- Will allowed recognize award of degrees, diplomas and certificates
CENTRAL DATA PROCESSING CENTRE TO BE INTRODUCED FOR COMPANIES ACT FILLINGS
- A Central Processing Centre would be setup
- For faster response to Companies through centralized handling of various forms filed with field offices
ESTABLISHMENT OF AN IT INTEGRATED IEPFA PORTAL
- Investors can reclaim unclaimed shares and unpaid dividends
- An integrated IT portal will be established
Piyush Kumar Singh, Assessment Intern at S.S. Rana & Co. has assisted in the research of this Article.
[2] https://www.indiabudget.gov.in/doc/eb/vol1.pdf
[3] The Ministry of Science & Technology received a Budget of Rs. 14,217.46 Crores in 2022-23
[4] https://www.indiabudget.gov.in/doc/budget_speech.pdf
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