{"id":16915,"date":"2021-02-01T16:27:44","date_gmt":"2021-02-01T10:57:44","guid":{"rendered":"https:\/\/www.instamojo.com\/blog\/?p=16915"},"modified":"2021-02-05T14:54:04","modified_gmt":"2021-02-05T09:24:04","slug":"union-budget-2021-msmesstartups-e-commerce-budget-highlights","status":"publish","type":"post","link":"https:\/\/www.instamojo.com\/blog\/union-budget-2021-msmesstartups-e-commerce-budget-highlights\/","title":{"rendered":"Union Budget 2021 &#8211; MSMEs,Startups, E-Commerce Budget Highlights"},"content":{"rendered":"<p class=\"p3\">The Union Budget 2021 was presented in the parliament by Finance Minister Nirmala Sitharaman on February 01, 2021, at 11 AM IST.<\/p>\n<p class=\"p3\"><em><strong>For the first time, our budget is digitised. The Finance Minister ditched the traditional \u2018bahi khata\u2019 to replace it with a \u2018Made in India\u2019 tab.<\/strong><\/em><\/p>\n<p class=\"p3\">In a 1 hour 50 minutes speech, Sitharaman covered different schemes and pointers for COVID affected MSME and startup sector. Here are all the highlights of the Union budget 2021.<\/p>\n<p class=\"p3\">In case you missed it, we LIVE tweeted the entire budget session &#8211; take a look here.<span class=\"Apple-converted-space\">\u00a0<\/span><\/p>\n<blockquote class=\"twitter-tweet\">\n<p dir=\"ltr\" lang=\"en\">What is in store for the business community in the Union Budget 2021?<\/p>\n<p>We put it all under this thread\u2014highlights and announcements \u2b07\ufe0f<a href=\"https:\/\/twitter.com\/hashtag\/UnionBudget2021?src=hash&amp;ref_src=twsrc%5Etfw\">#UnionBudget2021<\/a> <a href=\"https:\/\/twitter.com\/hashtag\/Budget2021?src=hash&amp;ref_src=twsrc%5Etfw\">#Budget2021<\/a> <a href=\"https:\/\/twitter.com\/hashtag\/Budget?src=hash&amp;ref_src=twsrc%5Etfw\">#Budget<\/a> <a href=\"https:\/\/t.co\/3xmDsdjmGk\">pic.twitter.com\/3xmDsdjmGk<\/a><\/p>\n<p>\u2014 instamojo (@instamojo) <a href=\"https:\/\/twitter.com\/instamojo\/status\/1356138124494168066?ref_src=twsrc%5Etfw\">February 1, 2021<\/a><\/p><\/blockquote>\n<p><script async src=\"https:\/\/platform.twitter.com\/widgets.js\" charset=\"utf-8\"><\/script><\/p>\n<h3 class=\"p3\">The 6 Pillars of the Union budget 2021<\/h3>\n<ul>\n<li>Health and Well-Being<\/li>\n<li>Physical and Financial capital and infrastructure<\/li>\n<li>Inclusive Development for Aspirational India<\/li>\n<li>Reinvigorating Human Capital<\/li>\n<li>Innovation and R&amp;D<\/li>\n<li>Minimum Government and Maximum Governance<\/li>\n<\/ul>\n<h2>Promotion of Aatmanirbhar Bharat<span class=\"Apple-converted-space\">\u00a0<\/span><\/h2>\n<p class=\"p3\">Finance Minister Nirmala Sitharaman stated in the union budget that the Government is introducing &#8216;Aatmanirbhar Swastha Bharat Yojana&#8217; with an outlay of\u00a0\u20b9 64,180 crores to support and facilitate economic growth.\u00a0She also proposed strengthening of \u2018<a href=\"https:\/\/www.instamojo.com\/blog\/top-features-of-the-atmanirbhar-bharat-abhiyan-scheme-that-benefits-your-business\/\" target=\"_blank\" rel=\"noopener\">Sankalp of Aatmanirbhar Bharat<\/a>\u2019.<\/p>\n<p>In addition to the Aatmanirbhar Bharat schemes, the Government proposed to launch 7 textile parks over 3 years,\u00a0 to boost production and investment. This scheme aims to generate employment and encourage domestic production and become global champions in exports.<\/p>\n<blockquote class=\"twitter-tweet\">\n<p dir=\"ltr\" lang=\"en\">Commitment of financial outlay of RS 1.97 lakh crore in the next 5 years starting FY 2021-22 for PLI schemes in 13 sectors<\/p>\n<p>\u25aa\ufe0f7 new textile parks to be launched over 3 years<a href=\"https:\/\/twitter.com\/hashtag\/AatmanirbharBharatKaBudget?src=hash&amp;ref_src=twsrc%5Etfw\">#AatmanirbharBharatKaBudget<\/a><\/p>\n<p>Read more: <a href=\"https:\/\/t.co\/EEF8RNMIAE\">https:\/\/t.co\/EEF8RNMIAE<\/a> <a href=\"https:\/\/t.co\/e3HyXhDNUN\">pic.twitter.com\/e3HyXhDNUN<\/a><\/p>\n<p>\u2014 PIB India (@PIB_India) <a href=\"https:\/\/twitter.com\/PIB_India\/status\/1356161146210844678?ref_src=twsrc%5Etfw\">February 1, 2021<\/a><\/p><\/blockquote>\n<p><script async src=\"https:\/\/platform.twitter.com\/widgets.js\" charset=\"utf-8\"><\/script><\/p>\n<h3 class=\"p3\">#2 &#8211; Financial boost to MSMEs and startups<\/h3>\n<h4 class=\"p3\">For MSMEs<\/h4>\n<p class=\"p3\">The Government will allocate over \u20b9 15,700 crores for the MSME sector &#8211; more than double from last year! Nirmala Sitharaman also announced that\u00a0Data analytics and AI framework will be launched for MSMEs under the NCLT framework.<\/p>\n<p class=\"p3\">There are also proposed changes to help MSMEs with regard to customs &#8211; Khadi, leather, gemstones etc; to encourage domestic processing. The Government will also raise customs duties on cotton, silk to benefit farmers.<\/p>\n<h4 class=\"p3\">For Startups<\/h4>\n<p class=\"p3\">In a big boost for startups, The Government incentivised incorporation of one-person companies. Such companies will be allowed to grow without any restriction on paid-up capital or turnover and can convert into any other type of company at any time, according to details provided by the Government of India.<\/p>\n<blockquote class=\"twitter-tweet\">\n<p dir=\"ltr\" lang=\"en\"><a href=\"https:\/\/twitter.com\/hashtag\/Budget2021?src=hash&amp;ref_src=twsrc%5Etfw\">#Budget2021<\/a> For Startups<\/p>\n<p>&#8221;Incorporation of one-person companies for single founders will enable them to start their own company, register it &amp; attract investments.&#8221; says <a href=\"https:\/\/twitter.com\/YagneshS2707?ref_src=twsrc%5Etfw\">@YagneshS2707<\/a> of <a href=\"https:\/\/twitter.com\/100X_VC?ref_src=twsrc%5Etfw\">@100X_VC<\/a> <a href=\"https:\/\/twitter.com\/hashtag\/BudgetWithCNBCTV18?src=hash&amp;ref_src=twsrc%5Etfw\">#BudgetWithCNBCTV18<\/a> <a href=\"https:\/\/t.co\/RjmioYMYKv\">pic.twitter.com\/RjmioYMYKv<\/a><\/p>\n<p>\u2014 Young Turks (@CNBCYoungTurks) <a href=\"https:\/\/twitter.com\/CNBCYoungTurks\/status\/1356184047160942596?ref_src=twsrc%5Etfw\">February 1, 2021<\/a><\/p><\/blockquote>\n<p><script async src=\"https:\/\/platform.twitter.com\/widgets.js\" charset=\"utf-8\"><\/script><\/p>\n<h3 class=\"p3\">#3 &#8211; Debt recovery schemes for NBFCs to improve credit discipline<span class=\"Apple-converted-space\">\u00a0<\/span><\/h3>\n<p class=\"p3\">To improve credit discipline and protect the interest of small borrowers, NBFCs can recover loans that are over\u00a0<strong>\u20b9\u00a0<\/strong>100 crores only. Also, the budget announced several alternate methods of debt resolution for MSMEs.<\/p>\n<blockquote class=\"twitter-tweet\">\n<p dir=\"ltr\" lang=\"en\"><a href=\"https:\/\/twitter.com\/hashtag\/Budget2021?src=hash&amp;ref_src=twsrc%5Etfw\">#Budget2021<\/a><\/p>\n<p>NCLT framework will be strengthened, e-court system to be implemented, alternate debt resolution mechanism and special framework for MSMEs to be introduced, Data Analytics and AI driven MCA 21 version 3.0 to be introduced <a href=\"https:\/\/twitter.com\/hashtag\/AatmanirbharBharatKaBudget?src=hash&amp;ref_src=twsrc%5Etfw\">#AatmanirbharBharatKaBudget<\/a><\/p>\n<p>\u2014 PIB India (@PIB_India) <a href=\"https:\/\/twitter.com\/PIB_India\/status\/1356145215900274690?ref_src=twsrc%5Etfw\">February 1, 2021<\/a><\/p><\/blockquote>\n<p><script async src=\"https:\/\/platform.twitter.com\/widgets.js\" charset=\"utf-8\"><\/script><\/p>\n<h3 class=\"p3\">#4 &#8211; Change in definition of small companies<span class=\"Apple-converted-space\">\u00a0<\/span><\/h3>\n<p class=\"p3\">The Union Budget 2021 will amend the <a href=\"https:\/\/www.instamojo.com\/blog\/new-definition-of-msme-sector\/\" target=\"_blank\" rel=\"noopener\">definition of Small companies<\/a> under section 2(85) of the Companies.<\/p>\n<p class=\"p3\"><strong>The Government proposes to do this by increasing the thresholds of paid-up capital from \u20b9 50 lakhs to\u00a0\u20b9 2 crores, and turnover from\u00a0\u20b9 2 crore to\u00a0\u20b9 20 Crore.<\/strong><\/p>\n<p class=\"p3\">Through this, many companies are covered under the definition of <em>\u201cSmall Companies\u201d<\/em>\u00a0&#8211; which ensures ease of compliances under Companies Act 2013.<\/p>\n<blockquote>\n<p class=\"p3\">Small businesses will see lesser compliance on matters including the conduct of board meeting, exemption from auditor rotation, relaxations on internal financial control reporting, relaxed provisions on annual return and financial statements and lesser penalties, etc. This will reduce the compliance burden on additional smaller companies,&#8221; Madhu Sudan Kankani, Partner, Deloitte India.<\/p>\n<\/blockquote>\n<h3 class=\"p3\">#5 &#8211; Portal to collect information on gig workers<\/h3>\n<p class=\"p3\">The Government proposes to allow contractual workers and gig workers to social security benefits. Minimum wages will apply to all category of workers. This will strengthen the unorganised labour workforce and help formulate health, housing, skill, food, credit and insurance schemes for all migrant workers.<\/p>\n<blockquote class=\"twitter-tweet\">\n<p dir=\"ltr\" lang=\"en\">One nation one ration card under implementation by 32 States and UTs reaching 69 crore beneficiaries: Finance Minister <a href=\"https:\/\/twitter.com\/nsitharaman?ref_src=twsrc%5Etfw\">@nsitharaman<\/a><br \/>\n<a href=\"https:\/\/twitter.com\/hashtag\/AatmanirbharBharatKaBudget?src=hash&amp;ref_src=twsrc%5Etfw\">#AatmanirbharBharatKaBudget<\/a><\/p>\n<p>Details here: <a href=\"https:\/\/t.co\/HycqJk0WWJ\">https:\/\/t.co\/HycqJk0WWJ<\/a> <a href=\"https:\/\/t.co\/oEESQ2DbYJ\">pic.twitter.com\/oEESQ2DbYJ<\/a><\/p>\n<p>\u2014 PIB India (@PIB_India) <a href=\"https:\/\/twitter.com\/PIB_India\/status\/1356161565276291073?ref_src=twsrc%5Etfw\">February 1, 2021<\/a><\/p><\/blockquote>\n<p><script async src=\"https:\/\/platform.twitter.com\/widgets.js\" charset=\"utf-8\"><\/script><\/p>\n<h3 class=\"p3\">Other highlights of the budget for MSMEs<\/h3>\n<ul>\n<li class=\"p3\">Agricultural Infrastructure Fund will be available to APMCs for augmenting their infrastructure facilities<\/li>\n<li>Asset monetisation of public infrastructure<\/li>\n<li class=\"p3\"><strong>\u20b9\u00a0<\/strong>1,500 crores allocated for a proposed scheme for financial incentives to boost digital payments in India<\/li>\n<\/ul>\n<h3>What do we think about the union budget 2021?<\/h3>\n<p>The union budget 2021 focused mainly on revival strategies for COVID-hit economy. The Government is going to allocate most of the budget to bring back healthcare and public infrastructure.<\/p>\n<p><strong>Pros:<\/strong> The budget does not impose increased taxes on businesses or startups. There is an increased focus on ease of doing business for MSMEs with lesser compliance burdens.<\/p>\n<p><strong>Cons:<\/strong> The Government focuses on a broader, all-round union budget. There is little focus on MSMEs that are financially crippled and need immediate financial relief. Hopefully, the Aatmanirbhar Bharat scheme will benefit MSMEs that need to grow or expand this year.<\/p>\n<p>Overall, the budget is transparent, focuses on overall industry growth, and promoting digital literacy in the country.<\/p>\n<p>Do you think the Union Budget benefits MSMEs? Let us know in comments<\/p>\n<hr \/>\n<p style=\"text-align: center;\"><a class=\"mb-button mb-style-flat mb-size-default mb-corners-default mb-text-style-default \" style=\"background-color: #4e4e91;\" href=\"https:\/\/twitter.com\/instamojo\/status\/1356138124494168066\" target=\"_blank\" rel=\"noopener\">CATCH BUDGET 2021 UPDATES HERE <\/a><\/p>\n","protected":false},"excerpt":{"rendered":"The Union Budget 2021 was presented in the parliament by Finance Minister Nirmala Sitharaman on February 01, 2021,&hellip;\n","protected":false},"author":6,"featured_media":16918,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":[],"categories":[1],"tags":[4335,4337,4321,538,3461,4336,3334,2831,4334],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v17.8 - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>Union Budget 2021 - MSMEs,Startups, E-Commerce Budget Highlights<\/title>\n<meta name=\"description\" content=\"The union budget 2021 mentioned few schemes that will benefit the MSME and startup sector in India. 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