Earlier this week, India shared its budget, balancing between supporting growth and aiming to reduce the country’s deficit (from 9.5% of GDP in FY21 to 6.8% of GDP in FY22), and offers a boost to the country’s startup community. The budget was met with wide praise, with measures to stimulate the economy without enforcing tax rises on the population. India’s Finance Minister announced welcome funding for small businesses and startups, with a year-long extension to the startup tax holiday in place. £1.6 billion – more than double last year’s figure – was allocated to the Ministry of Micro, Small and Medium Enterprises (MSME). Other measures to be put in place included collateral-free loans for businesses and the launch of a fund of funds for MSMEs.
SMEs will potentially drive the recovery of the UK economy
With SMEs accounting for 99.9% of the business population (6.0 million businesses), and three-fifths of the employment, SMEs holding the potential to power a strong recovery to the UK economy, Sunak, and the government should work to ensure that UK SMEs are given a similar boost to India’s. Nayan Gala, the founding partner at venture capitalist JPIN VCATS, shared his view with Finbold.com on the upcoming UK budget:
