Innovation & R&D will get a boost by allocating National Regional Foundation (NRF) a sum of 50,000 Cr and boost Innovation Culture in startups.
Announcement of Non-Auditing of Income Tax till 10 Cr. and allowing Startups to claim IT Exemption and Capital Gains for 1 more Year will ease the Compliance Burden of Startups and help in raising more funds.
NEP (New Education Policy) has been given a thrust in the budget. The plan to set up 15000 Pilot Schools as a showcase for NEP, which can be exemplary for other schools, is a welcome step and will lead to promoting NEP in the School Ecosystem. Tribal School-Eklavya Schools with newer allocation – in tribal areas will spur further development of education in tribal areas. Allocation of the National Apprenticeship Scheme for 3000 Cr and increasing the contours of it will benefit companies.
Innovation & R&D will get a boost by allocating National Regional Foundation (NRF) a sum of 50,000 Cr for the next 6 Years. Research and Innovation Ecosystem to get a substantial growth."
Anoop Gautam, CEO & Co-founder, Tinker Coders (An online coding platform for K-12 students) said, "The unprecedented contractions put forth by the Covid-19 crisis have changed the economical aspects, entirety. Many changes were incorporated keeping in mind the challenges being faced by people at the grass-roots level. The startup industry, Edtech space too witnessed contractions and flattening of the curve in terms of growth and expansion. However, the recovery and normalcy rate has improved to a larger extent keeping in mind the implications of the pandemic.
Union Budget 2021 has focused on strengthening 15000 schools with all the components of NEP as a pilot project. Also, skill enrichment programs will be initiated in collaboration with the United Arab Emirates which will bring new opportunities for the youth of our country. FM Shrimati Nirmala Sitharaman also mentioned to initialize a collaborative training program with Japan, which will be launched for more countries as well in the upcoming future.
This year’s Union Budget has focused primarily on innovation and research development, therefore it has become even important for the students in the K-12 segment to enhance their 21 st -Century skills in order to become skill-efficient in this tech-led generation. For startups, the government has proposed to reduce the margin money requirement from 25% to 15%. This will open a new door of opportunities for startups in upscaling their businesses. The government has also doubled the fund allocation for MSMEs, to a whopping 15,700 crores for FY22."
Abhishek Gupta, Founder and CEO, Hex N Bit ( An edtech platform provides one-stop solutions in Industry-Connect Skill Development Courses) said, "We welcome the budget for 2021. With an increase in the MSME budget of Rs 15,700 crore, which is more than double of the previous year, can help the startups as well as MSME but as seen there are approximately 50k startups in India, so a big boost was expected in investment.
In the National apprenticeship training scheme–the Indian government has now allocated Rs. 3,000 Cr. for National apprenticeship which will create a Skilled & talented workforce with the bilateral partnership with United Arab Emirates (UAB) to provide training, certification, assessments etc. India will collaborate with Japan in order to adopt cutting edge technology, technique & vocational programs for scaling up the technology in India to newer heights.
The government of India has proposed the budget of Rs 50K crore over 5 years for innovation & R&D. There will be an expectation from the Government to spend setting up the Innovation lab focusing on the technologies such as Artificial Intelligence, Machine learning, Data analytics, etc. which can showcase the solution to most of the problem statement in most of the field including medical, agriculture, defence or any natural disaster.
As proposed by FM, capital expenditure is now increased to Rs. 5.54 Lakh crore from Rs. 4.39 Lakh crore, hopefully, the state & center will invest a considerable amount for digital connectivity, high-speed internet at an affordable rate as well as learning assets in a remote location so that aspirants can learn new-age technology to build New India. Even after the economic crisis due to Covid-19, an increase in the capital expenditure with such a high number must be appreciated.
Boost to start-up hub in India, as proposed by FM, there will be a plan to enforce incentives incorporation of one-person companies without any restriction on paid-up capital. Can set up this company in 180 days."