Get ready for the Union Budget 2022 that is going to be announced by our Finance Minister Nirmala Sitharam on February 1. If last year’s budget was designed to help the economy recover, the upcoming budget should focus on driving growth. Like every year, this year too, we outlined key budget expectations that small businesses and DTC brands have from the Narendra Modi Government. Let’s get started.
- 1 What do DTC brands and small businesses want?
- 2 Budget 2021 recap:
What do DTC brands and small businesses want?
1. GST rationalisation and compliance burden reductions
“Inability to handle GST compliance costs has disabled millions of self-employed women/self help groups and artisans from selling their produce online especially during the Covid pandemic. It is crippling. Both the offline and online sellers should be allowed to sell without GST registration below the prescribed threshold,” – Federation of Indian Micro and Small & Medium Enterprises
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2. Better infrastructure so more brands can reach more people around India
3. Support for start-up India initiatives so more DTC brands can become unicorns
“Small businesses are the spine of India’s economy and Startups are the game changers. This partnership can benefit both, the society and the economy, especially women employment will get strengthened because of this,” Narendra Modi, PM India
4. Skill development for entrepreneurs
- Digital literacy
- Linguistic ability
- Cultural employment
Budget 2021 recap:
Did we get out expectations right in 2021? Or did we aim too high? Watch this video to find out!
Some of the key deliverables of the Union Budget 2021 were:
- A 2x increase in the amount allocated for the MSME sector from 2020.
- The State releases a ₹20 Lakh Cr Atmanirbhar Bharat Abhiyan that had several benefits like:
- Collateral-free loans were given to MSMEs with an annual turnover of ₹100 crores.
- ₹1500 Crore scheme released to promote digital modes of payment
- Allocation of ₹20,000 crores to help MSMEs repay existing loans
- Creation of ₹50,000 Crore ‘Fund of funds’ to help MSMEs with technical capacity building and driving innovation
- Revised definition for the term ‘Micro-enterprises’
Even though some expectations were not met, the budget in 2021 was largely focused on recovery. Let’s find out what Budget 2022 has in store for us!
Communication is key!
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What does your small online business need from the Government? Tell us in the comments below!
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