The Union Budget 2024 has brought a wave of enthusiasm across the Indian startup ecosystem with the landmark decision to abolish the angel tax. This move, along with other progressive reforms, are being broadly appreciated by industry leaders and entrepreneurs. The Indian Government listed nine focus areas for the Union Budget 2024, and stated that they would build on those priorities.
Rahul Garg, CEO and Founder of Mogilx, highlighted multiple facets of the budget:
“The removal of angel tax is a welcome move for India’s startup ecosystem. This, coupled with the establishment of a Rs 1,000 crore VC fund for the space economy, will foster innovation. The budget’s focus on manufacturing, with the introduction of plug-and-play industrial parks, is progressive. MSMEs will benefit significantly from the credit guarantee scheme, new assessment models by PSU banks, and increased Mudra loan limits. The substantial allocation of Rs 11 lakh crore for infrastructure especially nature resilient is crucial for building a Viksit Bharat. The strategic shift towards nuclear energy as a major power source is visionary. Finally, the emphasis on cultural heritage through the development of the Vishnupad, Mahabodhi temple corridors, Rajgir, and Nalanda is a welcome addition.”
Abhinav Jain, Co-Founder and CEO of Almonds AI, praised the budget’s impact on startups:
“The Union Budget 2024 has delivered a landmark decision for India’s startup ecosystem. The abolition of angel tax for all investor classes is a game-changing move that signals the government’s unwavering commitment to nurturing our nation’s innovative spirit. This pivotal reform will inject much-needed momentum into our startup landscape, which has faced headwinds recently. By removing this significant barrier to investment, the Budget 2024 is not just opening doors – it’s constructing highways for capital to flow into groundbreaking ideas. This bold step, building upon previous initiatives like the Startup India program, positions India to regain its growth trajectory in the startup space. The Union Budget 2024 sends a clear message: India is not only open for business but is actively cultivating the next wave of entrepreneurs who will propel our economy forward.”
In the same vein, Viren Choudary, CEO of Readywire, said: ”We welcome the Union Budget’s special focus on MSMEs and startups. The initiatives to facilitate continued bank credit during stress periods and the increased Mudra loan limits are particularly commendable. The abolition of Angel Tax will undoubtedly bolster the startup ecosystem, encouraging more innovation and investment. These measures reflect the government’s commitment to fostering growth and resilience in India’s entrepreneurial landscape, and we are optimistic about the positive impact this will have on the sector.”
Ayush Gupta , CEO of Swopstore, stated that the Union Budget 2024 would be a game-changer for Indian startups: “Abolishing Angel Tax and reducing corporate tax for foreign companies from 40% to 35% will boost investment and innovation. Simplifying taxes for foreign shipping companies will also open up new opportunities in maritime and tourism sectors. As a young entrepreneur, I’m thrilled to see the government’s commitment to making India a startup hub. These reforms can lead to a 20-25% growth in the startup sector, helping us scale faster, access global markets, and create more jobs. Kudos to the government for taking bold steps to propel India’s startup revolution.”
Industry Lauds Union Budget 2024
Rishi Agrawal, CEO and Co-Founder of Teamlease Regtech, expressed his excitement, stating: “I am thrilled to see that the finance minister has put the spotlight on the expedited closure of LLPs. This measure will aid in reducing the duration of closure for non-viable limited liability companies. She has also addressed the issue of reforming and enhancing the Insolvency Business Center (IBC) in order to expedite the resolution of insolvencies. These steps will help ease the ease of doing business by helping improve the efficiency of corporate exits, which has been an issue in the country. In the past, we have seen greater emphasis on single window clearance for faster setup. The ease of corporate exits has not received sufficient attention. This represents a significant advancement in the right direction. It will assist investors in exiting an unviable venture in a timely manner. FM has announced the launch of Jan Vishwas 2.0. Deeply entrenched hostility in India’s employer compliance must be placed in the museum where it belongs. Population scale DPI, particularly in corporate governance, is a step in the right direction towards improving ease of compliance via digitization.”
Deepak Visweswaraiah, vice president, platform engineering and site managing director, Pegasystems, appreciated the holistic approach to societal welfare: “With an emphasis on welfare for the youth, women, and farmers reflecting a holistic approach to societal progress, this budget isn’t just about numbers, it’s about people and their potential that sets the stage for a very positive development. Designed to drive productivity and build resilience in inclusive human resource development, social justice, and advancements in innovation, next-generation reforms, and R&D among other key economic pillars, the budget does lay a robust foundation for India’s sustainable growth and development. Coupled with heavy investments in public digital infrastructure with private players, it has aimed to ensure a brighter future for all segments of society. The new ₹3 lakh crore scheme and ₹10 lakh loans for higher education, along with plans to skill 20 lakh young Indians and provide internships to one crore youth, highlight India’s dedication to talent development and diversity. This budgetary initiative is set to put India on the global map as a leader in youth skill development and workforce excellence, creating an excellent pathway to vision 2047.”
Strong Commitment to Space Sector Development
Lt. Gen. AK Bhatt (Retd.), Director General, Indian Space Association (ISpA), said: “The Union budget’s vision to grow India’s space economy by fivefold in the next decade demonstrates the government’s strong commitment to this sector. We previously advocated for increased financial incentives to support the burgeoning space startups in the country. The announcement of a ₹1000 crore VC fund is a step forward, addressing the funding challenges faced by these nascent ventures in this capital-intensive domain. Additionally, the proposal for establishment of 12 industrial parks across India we hope will include the space sector as this will provide a substantial boost to the space and satellite manufacturing industry, which has long called for the creation of space parks. These measures are pivotal for the growth and development of India’s space ecosystem.”
Boost for Electronics Manufacturing and Skilled Workforce
A. Gururaj, Managing Director, Optiemus Electronics Ltd., said, “We welcome the initiatives announced in the Union Budget. The significant emphasis on manufacturing is heart warming and much needed for the growth of the economy. With the substantial expansion of the electronics manufacturing industry, the demand for a skilled workforce has become paramount. The announcement of various skilling initiatives and the scheme to incentivize additional employment in the manufacturing sector, particularly for first-time employees, will provide essential support to industries reliant on skilled workforce, especially in electronics. Furthermore, the proposal to reduce the Basic Customs Duty on mobile phones, mobile PCBA, and mobile chargers to 15% is a positive step. The measures laid out to support the MSME industries in particularly welcome to create a much needed supplier base for electronics within India. These measures collectively send out a strong message on the manufacturing sector and related eco system in India.”
Advancing Women’s Economic Role and Financial Inclusivity
Joyshree Das Verma, National President, FICCI FLO, said: “This year’s budget marks a significant stride towards enhancing women’s role in India’s economic development. The allocation of more than Rs 3 lakh crores for women-specific schemes and skilling programs underscore the government’s commitment to women-led development and enhancing economic inclusivity. The government is creating a supportive environment for women professionals through market access to women-led Self Help Groups and the establishment of working women’s hostels and creches in partnership with businesses. Furthermore, the reduction in duties for properties purchased by women and the introduction of the NPS Vatsalya scheme, which promotes long-term savings for minors, exemplify the government’s commitment to an inclusive financial landscape for women and their families. Schemes like PM Vishwakarma, PM SVANidhi, Mudra Yojana and Lakhpati Didi are a testament to the transformative impact of targeted financial support for women. FICCI FLO stands poised to collaborate closely with the government to ensure these initiatives translate into tangible benefits for women entrepreneurs. Together, we can accelerate the momentum towards gender equality and inclusive growth, enabling women entrepreneurs to thrive and contribute significantly to the nation’s economy.”
Opportunities for GIS Industry with Infrastructure Focus
Agendra Kumar, Managing Director, Esri India, said: “It was encouraging to see the focus given in the budget on Infrastructure, Energy sector and urban development. GIS plays a very important role in these sectors. The Finance Minister spoke about improving productivity in the agriculture sector and digital crop survey in 400 districts. GIS can be an important tool in these as well. The focus on rural land records, GIS mapping for urban land records, and the use of GIS for property tax collection also offer opportunities for the GIS industry. These will improve the income of cities which can be used to improve the quality of infrastructure in cities and to provide better living conditions to the citizens. The investment of more than Rs 11 lakh crores in infrastructure development is also a positive news for the GIS industry.”
Empowering Women and Enhancing Workforce Participation
Kavitha Ramachandragowda, Co-Founder and Executive Director, Routematic, said: “The Union Budget 2024-25 serves as a significant stride towards women’s empowerment, earmarking over Rs 3 lakh crore for initiatives benefiting women and girls. By facilitating higher participation of women in the workforce through the establishment of working women hostels and creches in collaboration with industry, the government is creating supportive environments for women professionals. The government’s focus on higher education, women centric skilling, employability, and enhanced schemes for women entrepreneurs along with the abolition of the angel tax is commendable and will undoubtedly boost the startup ecosystem in India and representation of women in the Indian workforce.”
Fostering Women Entrepreneurs and Inclusive Growth
Neha Bagaria, Founder and CEO, Herkey, said: “As a woman entrepreneur, I am deeply encouraged by the Union Budget 2024-25’s commitment to fostering women’s participation in the workforce. The dedicated focus on creating hostels and women-specific skilling programs reflects a significant step towards gender parity in business. Moreover, the new credit guarantee schemes for MSMEs, which remove the burden of collateral requirements, will empower countless women-led enterprises to grow and innovate. This budget not only addresses immediate economic needs but also lays a strong foundation for a more inclusive and equitable future. It is heartening to see such a comprehensive approach to unlocking the potential of countless women across India.”
