Union Budget 2020 India: The government is all set to present its next budget in two days and we hope to see policies that tackle fundraising for business growth in consumer-oriented companies. VCs investing in Indian companies with a global outlook must be provided some tax incentives. Export-oriented companies should be given more incentives including duty drawback and license sales, etc.
Budget 2020 Expectations from Tea Industry
Coming to the tea industry, there is a disparity in the GST slabs on tea products. For the tea industry to begin sustaining itself, a GST of 5% must be uniformly applied on all products including flavored teas. To attract foreign investments, the government must focus on increasing budgetary allocation for infrastructure development and ease of doing business. We are yet to see any significant funding opportunities for upcoming brands in the tea industry. More awareness and conducive policies in this sector can help more entrepreneurs to set up their business in this segment.
Budget 2020 Reduction in cost of production can help tea industry
The tea industry can help in generating employment for the million-plus workforce of the country in a variety of roles. For this, the sector must become more viable through reduction in the costs of production and increase in selling prices. There is also a need to lower income tax and put more money in the consumer’s hands to encourage domestic consumption in the economy.
Small or home entrepreneurs should be freed from GST obligations and the government must ensure parity between online and offline suppliers that have a turnover below INR 40 lakh. Additionally, some clarity on e-commerce policies will set the pace for start-ups for the year ahead.
The need of the hour is for a planned decision involving relevant stakeholders from the startup domain and other organizations alike. This will help address aspects including regulation of the digital economy, privacy alerts, consumer protections, and capital regulations. Overall, we look forward to a budget that addresses the small and medium sector and aids growth of the start-up sector through conducive policies.