Entrepreneurs hail angel tax abolition, job creation plans
BizNewsConnect presents a collection of industry views.
Abhishek Negi, Co Founder Eggoz Nutrition: Finance Minister Nirmala Sitharaman announced the abolition of the angel tax for all investor classes. This measure provides significant relief to the Indian startup ecosystem, which has been experiencing a funding downturn over the past year. Additionally, the Finance Minister broadened the definition of an “eligible startup” under the Startup India scheme to encompass entities incorporated between April 1, 2016, and March 31, 2025. This expansion allows more startups to benefit from the tax holiday provided by the scheme. The government also reaffirmed its commitment to the ‘Vocal for Local’ campaign by guaranteeing credit schemes to facilitate term loans for MSMEs for the acquisition of machinery and equipment without the need for collateral or guarantees.
Gaurav Juneja- Chief Revenue Officer of Kapture CX: The Budget 2024 marks a significant milestone for the Indian startup ecosystem, with initiatives fostering innovation and growth. Abolishing the angel tax for all investor classes creates a more supportive environment for angel investments, benefiting startups and paving the way for India to become a global innovation hub.
The financial infusion, slated over the next five years, is envisioned to catalyze various components of the IndiaAI Mission. This includes pivotal initiatives like the IndiaAI Compute Capacity, IndiaAI Innovation Centre (IAIC), IndiaAI Datasets Platform, IndiaAI Application Development Initiative, IndiaAI FutureSkills, IndiaAI Startup Financing, and Safe & Trusted AI. With a new allocation of Rs 551.75 crore, the IndiaAI Mission reflects the government’s focus on advancing AI research and applications, positioning
The introduction of the Anusandhan National Research Fund and a financing pool of Rs. 1 lakh crore to spur private sector-driven research and innovation is a game-changer. This fund will power basic research and prototype development, driving commercial-scale innovation and enabling startups to bring cutting-edge solutions to the market.
Additionally, the Finance Minister’s announcement of a PM Package with five schemes aimed at facilitating employment and skilling, along with a provision of Rs 1.48 lakh crore for education, employment, and skilling, underscores the government’s commitment to building a skilled workforce that will drive the startup ecosystem forward.
Swati Bhargava, Co-Founder of CashKaro: The Union Budget 2024 is a significant step forward for India’s growth, focusing on empowering women in the workforce, supporting employee welfare, and driving innovation. The allocation of over ₹3 lakh crore for schemes benefiting women and girls, along with new initiatives like skilling programmes and salary support for first-time employees, highlights the government’s commitment to gender inclusivity and employment generation.
For startups, the abolition of the angel tax for all investors is a significant boost, fostering a more vibrant and innovative startup ecosystem. The reduction of the TDS rate on e-commerce transactions from 1% to 0.1% is a crucial step for digital businesses, easing the tax burden and encouraging growth. Additionally, the comprehensive review of the customs duty structure over the next six months and the proposal to decriminalize TDS delays up to the filing of the tax date reflect a forward-thinking approach to taxation. Overall, these measures will propel India towards a brighter, more innovative future, driving economic growth and development across various sectors.
Rohan Bhargava, Co-Founder of CashKaro: The Union Budget 2024 brings substantial changes to personal finance that will benefit a large number of taxpayers. The increase in the standard deduction from ₹50,000 to ₹75,000 and the revision of the tax slab limit for the 5% tax rate from ₹5 lakh to ₹7 lakh will significantly enhance disposable income. These changes will provide much-needed financial relief to the middle class and boost overall consumption.
Furthermore, the proposal to increase the deduction of employer expenditure towards NPS from 10% to 14% of the employee’s salary will improve social security benefits for the workforce. The revamp of the capital gains tax regime will impact investment decisions and financial planning, ensuring a more balanced and fair approach to taxation. These measures collectively contribute to a more robust and financially secure environment for individuals and families across India.
Gunjan Agarwal, Co-founder of XYST: Abolishing Angel Tax will have a long-term impact on startup founders. This will not only motivate angel investors but also help to encourage entrepreneurial spirit in the Indian business domain. Additionally, the job generation push, coupled with the government’s financial assistance will help startups acquire more talented professionals, leading to cumulative growth in the long term. This Union Budget is full of opportunities for Indian startups pushing to become the next Unicorn, and governmental assistance is bolstering it to ensure success and growth.
Ujjwal Minocha, Co-Founder and COO of Velmenni: Budget 2024 brings in a significant boost for ‘Make in India’ in the defense sector to uplift domestic markets, which is a positive sign. This initiative is expected to bring fundamental changes in the next 3-4 years by generating employment and placing India on the global map as a center for defense sector exports.
AltGraaf Jayaprakash, K, Chief Growth Officer, AI Growth Limited (Parent company of altGraaf): We are delighted by abolition of angel tax. This would boost investments in the startup ecosystem and create jobs. We are also delighted to see that government is moving towards parity in taxation between financial asset classes as well as non-financial assets. Additionally, credit boost to MSME sector with guarantees, reduction of corporate tax rate on foreign companies from 40% to 35% and some minor improvements to New tax Regime promotes job & economic growth.
Ravi Kaushik, Executive Director, Head of Asia Investments, Flourish Ventures: The scrapping of angel tax is a very progressive step in the right direction by the finance minister. This will not only open up opportunities for startups to freely raise capital from India’s thriving middle class, but also significantly reduce disputes and tax uncertainties. We wholeheartedly welcome this step.”
Moin Ladha, Partner at Khaitan & Co: Start up if incentivised well will be able to improve the distribution/funding and profitability for agricultural produce. This being one of the key focus areas in this budget. Special incentives for manufacturing sector which is anyways labour intensive will make the sector more attractive for foreign direct investment and will fosters growth of this sector. However, this being limited to first time employees will create a challenge regarding the ability of such employees to be involved in skilled jobs.”
“The government has announced schemes to provide (i) education loans of up to INR 10 lakhs for students studying in domestic institution with an interest rate of 3%, and (ii) loans of up to INR 7.5 Lakhs for individuals backed by guarantee from a government fund for promoting business skill development. The schemes are in line with government’s other schemes to make India ‘aatmanirbhar’ such as Make in Bharat and establishment of GIFT City to encourage investments in India. This will not only reduce foreign exchange spending but will also provide relevant opportunity to students for growth /employment and evaluations entrepreneurial opportunities.”
“Keeping the promise of Viksit Bharat, the government has not left the MSME sectors behind. The budget promises to prioritise strengthening and aiding the MSME sector by introducing credit guarantee schemes, continuing guarantee covers during stress period and developing e-commerce hubs for MSMEs to compete in the global market. With India being the hub of global trade, empowering small and medium businesses will be a step towards our mission of continued growth.”
“Currently, Indian limited liability partnerships (LLPs) can opt for closure by way of (i) striking off under the Limited Liability Partnership Act, 2008 (LLP Act); or voluntary winding up by the NCLT under the LLP (Winding up and Dissolution Rules) 2012; or voluntary liquidation under Insolvency & Bankruptcy Code 2016. The Government has announced measures to reduce timelines for such voluntary closures. This will allow for ease of doing business in India and will promote LLP as a form of setting up a commercial presence.
With the intention of simplifying cross border transactions, the government has proposed of introduce changes in foreign investment and overseas investment framework to (i) simplify the regulations, (ii) nudge priorities, and (iii) promote opportunities for the use of Indian currency for making overseas investment. This could mean changes being introduced to encourage overseas investment by resident Indians from the IFSC / GIFT City and development of designated special economic zones. Also nudging priorities seems to suggest greater surveillance on compliance and greater monitoring of investment in sensitive sectors.
Easing foreign direct investment could also lead to a more structured approach for considering government approval for investments under the approval route under the press note 3 ( from bordering nations ) or otherwise.
Devesh Purohit, Proprietor of C Suite Skincare.: “As an Indian, it fills me with pride when the Honourable Finance Minister confirms that India’s economic growth will shine and that simultaneously also gives confidence to the aspiring Entrepreneur in me. It is encouraging to see that this Union Budget will focus on MSME too apart from other tasks as MSME is a major employment provider and has business potential for Entrepreneurs and Startups. I think the 9 priorities given by the GOI in this particular budget are interconnected for a holistic social and economic growth of the nation. As D2C is a growing and a million dollar industry in India, a reduction of 0.1% of TDS rate will enhance some cash flow among the C Suite of relevant companies. I wish the government all the very best to accomplish their goal and vision of Vikasit Bharat by 2047.”
Rajeev Baid, Founder- Chai Chun and MD of Okayti. As an entrepreneur deeply rooted in the tea industry and the startup community, I am encouraged by the provisions in this year’s budget. The increased allocation for government-backed venture capital initiatives and grants specifically for agri-tech startups will greatly benefit innovative tea ventures, driving growth and sustainability in our sector.
The reduction in GST rates for startups and the simplification of compliance processes will ease financial and administrative burdens, allowing us to focus more on innovation and expansion. The introduction of tax holidays for the initial years of operation is a significant boost, encouraging new entrepreneurial endeavors in the tea industry.
The investment in digital infrastructure, including the expansion of high-speed internet access to rural and remote areas, will facilitate better connectivity for tea estates and help integrate advanced technologies like AI and IoT in tea cultivation and processing. This move is crucial for modernizing our industry and improving operational efficiency.
Furthermore, the focus on skill development programs tailored for the agri-tech and tech industries will ensure that we have a workforce equipped with the necessary skills to drive future innovations. This initiative is vital for sustaining growth and maintaining our competitive edge.
Overall, this budget demonstrates a strong commitment to nurturing both the traditional tea industry and the emerging startup ecosystem. I am optimistic that these measures will create substantial opportunities for growth, innovation, and sustainability in our sector.
Avneet Singh Marwah, CEO of SPPL, Exclusive brand licensee of Blaupunkt TVs in India: The Union Budget 2024 demonstrates a strong commitment to job creation in the manufacturing sector. By providing targeted incentives for EPFO contributions, the government aims to generate significant employment opportunities for both employers and the 30 lakh young people entering the workforce. This initiative reflects a strategic approach to meeting employment needs in our rapidly evolving economy.
With a substantial allocation of INR 2 lakh crore towards skilling programs, the budget emphasizes equipping our workforce with the skills necessary to succeed in a competitive global market. The focus on Micro, Small, and Medium Enterprises (MSMEs) is further supported by the introduction of a credit guarantee scheme, designed to enhance the financial stability and growth potential of the vital enterprises.
Additionally, the budget’s focus on the middle class is evident through tax relief measures, such as an increase in the standard deduction for salaried individuals and additional benefits under the new tax regime. These measures aim to boost disposable income and stimulate consumer spending, thereby fostering economic growth.
In summary, the Union Budget 2024’s initiatives in the manufacturing sector represent a forward-thinking strategy to create sustainable jobs, enhance skills, and support MSMEs. These measures are poised to play a crucial role in empowering our youth, strengthening the middle class, and guiding the nation towards a prosperous future.
Prateek N Kumar, Founder and CEO, NeoNiche Integrated Solutions: The recent Budget represents a comprehensive strategy aimed at fostering growth across various sectors of society. By focusing on employment, skilling, MSMEs, the middle class, the underprivileged, women, youth, and farmers, it presents a holistic and inclusive approach. The nine priorities outlined for the coming years—productivity and resilience in agriculture, employment and skilling, manufacturing and services, urban development, energy security, infrastructure, innovation, and R&D, and next-generation reforms—underscore a commitment to well-rounded development. This emphasis on job creation and boosting consumption is set to significantly benefit the consumer goods, real estate, and automotive sectors. It’s an encouraging roadmap for our nation’s future.
Prasad Sreeram, CEO & Co-Founder, COGOS: The launch of PM Gram Sadak Yojana Phase 4, aimed at providing all-weather roads to 25,000 rural habitats, is a monumental step toward enhancing rural connectivity and integrating these regions into the broader economy.
The expansion of Sidbi branches in MSME clusters and the enhancement of Mudra loans to ₹20 lakh will empower small businesses by providing essential credit for sustainable growth. The new MSME credit assessment model based on digital footprints is a significant advancement, opening new avenues for MSMEs, particularly those without formal accounting systems.
These measures highlight the government’s dedication to strengthening the logistics and MSME sectors, fostering economic growth, and creating a more inclusive and resilient economy. Additionally, proposals to expand safe hub rules, streamline transfer pricing, and abolish the angel tax for all investment classes will further promote investment, bolster the startup ecosystem, and support innovation.”
Vingish K Vijyan, Founder, 90+ My Tuition App: In the FY25 budget, the government has demonstrated a strong commitment to enhancing education and employment opportunities by allocating ₹1.48 lakh crore. This substantial investment highlights the critical need to support and prepare our youth for future challenges. A major component of this commitment is the introduction of financial assistance for higher education loans, allowing up to ₹10 lakh for students in domestic institutions. The provision of e-vouchers to cover 3% annual interest on these loans for one lakh students annually significantly alleviates the financial burden on families and promotes access to quality education. Additionally, the new scheme to offer internship opportunities at 500 top companies to one crore youth over five years is a forward-thinking initiative. By providing 12 months of real-world business exposure, this scheme equips students with essential skills and knowledge, enhancing their employability and ensuring they are well-prepared for a competitive global economy.
Kirang Gandhi, Personal Financial Mentor, K.Gandhi and Associates: “Investing in the infrastructure sector is highly promising as the government’s substantial ₹11.11 lakh crore capex allocation, representing 3.4% of GDP, underscores a strong commitment to economic growth and development. This significant public investment fosters job creation, boosts demand for materials, and enhances connectivity, which in turn stimulates broader economic activity. As infrastructure projects advance, they generate sustainable long-term returns, making the sector an attractive investment opportunity.
Navin Honagudi, Founder & Managing Partner of Elev8 Venture Partners: The announcement of the abolishment of angel tax has come at the most opportune time, especially since global startup funding has seen a decline of almost 30% in the last year. Reducing the tax on long-term capital gains arising from the sale of shares of startups to 12.5% will boost further innovation and entrepreneurship among the startup community and may even attract further global investors to India. This move mirrors tax measures of other major nations, propelling Indian GDP growth. Furthermore, with 44% of Indian startups situated outside large cities, such a step will further boost the expansion of innovation hubs in Tier-2 and Tier-3 cities, thereby promoting balanced regional development and tapping into India’s talent pool. This would foster a more risk-capital-friendly environment, increasing the likelihood of home-grown global digital behemoths, while also lowering technology dependence and promoting economic sovereignty in the long run.
Satyabrata Satapathy, CEO, BonV Aero: The budget 2024 – 25 is a significant step forward for the deep tech sector in India. By increasing allocations towards research and development, and providing incentives for innovation, the government has demonstrated its commitment to fostering a robust ecosystem for emerging technologies. This budget not only recognizes the critical role that deep tech plays in driving economic growth but also sets the stage for startups like BonV Aero to push the boundaries of innovation in areas such as drone technology and smart manufacturing. We are particularly encouraged by the support for infrastructure development and skill enhancement, which are crucial for scaling our operations and staying competitive on a global stage. Overall, these measures will help us accelerate our mission of delivering cutting-edge solutions and contributing to India’s technological advancement.
Rajesh Jaggi – Vice Chairman – Real Estate, Everstone Group: IndoSpace lauds the government for taking the necessary steps towards developing investment-ready plug-and-play industrial parks with comprehensive infrastructure in 100 cities. Together with states and the private sector, this pioneering step has the potential to transform both industrial development and urban planning in a big way. Under the National Industrial Corridor Development Program, these projects are going to serve as vibrant economic centres that drive development as well as innovation poised to create a lasting impact.
Vikas Singh, Co Founder of NFTFN, (a web3 fintech startup).:The 2024 Budget presents a mixed outlook for the startup community. On a positive note, the abolition of the Angel tax is a significant development that has been warmly received by founders and angel investors. This change is expected to provide a substantial boost to the entrepreneurial ecosystem in India. The budget’s emphasis on digital public infrastructure and the digitalization of the economy is another favorable aspect for tech startups focused on developing large scale applications for the Indian market.
However, the securities markets face less encouraging news. The increase in short-term capital gains tax from 15% to 20%, alongside the rise in long-term capital gains tax from 10% to 12.5%, and the hike in the Securities Transaction Tax (STT) on Futures & Options (F&O) transactions, are anticipated to negatively affect investors. The immediate reaction from the markets has been unfavorable.
In the cryptocurrency sector, there was an expectation that the government would align its taxation policy with other asset classes to foster growth and investment. Regrettably, this opportunity was not seized, marking a missed chance to further support startups and investors within the crypto space.”
Vidur Varma, CEO of Agri Wings: We commend the Union Budget presented by Finance Minister Nirmala Sitharaman for its comprehensive focus on empowering farmers and enhancing the agricultural sector. The emphasis on increasing MSP for all major crops and prioritizing productivity and resilience in agriculture is a significant step towards securing farmers’ livelihoods. The introduction of 109 climate-resilient crop varieties and the mission for self-sufficiency in pulses and oilseeds will greatly benefit farmers.
The initiative to engage one crore farmers in natural farming over the next two years, supported by branding and certification, is a visionary move that aligns with sustainable farming practices. Additionally, the development of large vegetable production clusters and the promotion of farmer producer centres, cooperatives, and startups will strengthen the supply chain and boost rural economies.
With a substantial allocation of ₹1.52 lakh crore for agriculture and allied sectors, this budget sets a strong foundation for achieving ‘Viksit Bharat’ by 2047. We look forward to contributing to this mission by integrating advanced drone technologies and efficient farming practices, ensuring a prosperous future for our farmers.
Sandeep Aggarwal, Founder & CEO, Droom: The Union Budget 2024 has provided a much-needed boost to the Indian start-up ecosystem, aligning with PM Modi’s vision of ‘Viksit Bharat’ by 2047. The abolition of the angel tax for all investor classes is a landmark decision that will foster greater investment, spur innovation, and support entrepreneurial spirit across the country. This long-awaited reform will undoubtedly attract more domestic and foreign capital into the start-up sector, addressing the scarcity of domestic capital.
Additionally, the expansion of the tax holiday eligibility under the Startup India scheme and the reduction of the corporate tax rate on foreign companies from 40% to 35% are crucial measures that will enhance the investment landscape. These initiatives, combined with the removal of regulatory bottlenecks, are poised to drive significant growth in the start-up ecosystem, contributing to India’s economic development and global competitiveness.
E-commerce: The Union Budget 2024 has taken significant steps to strengthen the e-commerce sector, aligning with the vision of ‘Viksit Bharat’ by 2047. The reduction of TDS rate on e-commerce to 0.1% and the decriminalization of TDS delay are commendable moves that will simplify tax compliance and reduce the burden on businesses. The abolition of the 2% Equalisation Levy on e-commerce supplies from August 2024 will further promote fair competition and encourage international investments.
The establishment of dedicated e-commerce export hubs in PPP mode is a transformative initiative that will empower MSMEs and traditional artisans to access global markets, potentially increasing India’s e-commerce exports to $350 billion by 2030. This budget reflects a pragmatic approach to boosting online trade and positions India as a formidable player in the global digital economy.
Rajat Grover, Founder & CEO, Elite Marque: The Budget 2024 introduces new opportunities for vegetable production and its supply chain. By incentivizing innovation and streamlining the market entry process, this initiative aims to boost production and improve the efficiency of distribution networks. Startups in agri-marketing and logistics will play an important role in connecting farms to homes, using technology to optimize supply chains and ensure fresh produce reaches consumers efficiently.
Due to the hike in global interest rates, investments in Indian agritech startups fell by 45% between FY 22 and FY 23. With this amendment, we expect increased visibility from VCs and investors, seeing the government take initiatives in this space. More agriculture-focused incubation centers should emerge in Tier 2 and Tier 3 cities, providing startups with direct benefits in building technology, mentorship, grants, and R&D. This will also encourage talented individuals from these regions to contribute to the agritech sector, fostering innovation and growth.
The MSME credit scheme will provide vital financial support to new ventures. With easier access to credit, startups can invest in infrastructure, technology, and skilled manpower, accelerating their growth and contributing significantly to economic revitalization. This approach not only supports scalability but also strengthens the economy by fostering a competitive and resilient MSME sector. We will see more business initiatives from Tier 3 and Tier 4 cities, the scheme will attract more talented individuals from these areas, enriching the startup ecosystem with diverse and dynamic talent.
Aashi Gupta, Founder of The Salt Cafe: The Budget 2024 announcement is a significant step forward for the agritech sector. By supporting startups throughout the vegetable supply chain and investing in digital public infrastructure, the government is laying a solid foundation for innovation and efficiency in agriculture. At The Salt Cafe, we value the role that high-quality, fresh ingredients play in delivering exceptional dining experiences. We are thrilled to see the government’s commitment to enhancing connectivity, storage, and marketing for farmers, as well as the introduction of digital tools that will streamline supply chains. These measures will not only boost the growth of agritech startups but also ensure that businesses like ours can continue to source the best produce, ultimately benefiting our customers.
Yogesh Sharma, CEO and Founder of Karigari by Chef Harpal Singh Sokhi: The budget’s focus on developing street food hubs and enhancing tourism infrastructure is promising for the food and hospitality sectors. The support for agritech startups and improvements in the vegetable supply chain will benefit our industry by ensuring a steady supply of quality produce. We look forward to leveraging these initiatives to further elevate our offerings and expand our impact,”
Saurabh Kumar, Founder of Cayenne: The Budget 2024 announcement is a promising boost for the agritech sector. By investing in startups that enhance the vegetable supply chain and introducing advanced digital infrastructure, the government is setting the stage for significant progress in agriculture. At Cayenne, The House of Spice, we’re dedicated to providing an exceptional dining experience with the finest ingredients. This initiative will improve supply chain efficiency, from connectivity and storage to marketing, which will benefit not only startups but also businesses like ours that rely on high-quality produce. We look forward to the positive impact these measures will have on our ability to deliver outstanding meals to our guests.
Chef Ashish Bhasin, Founder of Say Fontina: The Budget 2024 announcement is a game-changer for the agritech sector and a win for businesses focused on quality. The government’s commitment to supporting startups in the vegetable supply chain and advancing digital infrastructure is crucial for enhancing agricultural efficiency. At Say Fontina, where we pride ourselves on using the freshest, highest-quality ingredients for our Italian and Mediterranean dishes, we’re excited about the positive ripple effect these measures will have. Improved supply chain connectivity and storage will ensure a more reliable and sustainable source of produce, allowing us to continue offering our guests the exceptional flavors and dining experiences they’ve come to love
Entrepreneurs hail angel tax abolition, job creation plans
BizNewsConnect presents a collection of industry views.
Abhishek Negi, Co Founder Eggoz Nutrition: Finance Minister Nirmala Sitharaman announced the abolition of the angel tax for all investor classes. This measure provides significant relief to the Indian startup ecosystem, which has been experiencing a funding downturn over the past year. Additionally, the Finance Minister broadened the definition of an “eligible startup” under the Startup India scheme to encompass entities incorporated between April 1, 2016, and March 31, 2025. This expansion allows more startups to benefit from the tax holiday provided by the scheme. The government also reaffirmed its commitment to the ‘Vocal for Local’ campaign by guaranteeing credit schemes to facilitate term loans for MSMEs for the acquisition of machinery and equipment without the need for collateral or guarantees.
Gaurav Juneja- Chief Revenue Officer of Kapture CX: The Budget 2024 marks a significant milestone for the Indian startup ecosystem, with initiatives fostering innovation and growth. Abolishing the angel tax for all investor classes creates a more supportive environment for angel investments, benefiting startups and paving the way for India to become a global innovation hub.
The financial infusion, slated over the next five years, is envisioned to catalyze various components of the IndiaAI Mission. This includes pivotal initiatives like the IndiaAI Compute Capacity, IndiaAI Innovation Centre (IAIC), IndiaAI Datasets Platform, IndiaAI Application Development Initiative, IndiaAI FutureSkills, IndiaAI Startup Financing, and Safe & Trusted AI. With a new allocation of Rs 551.75 crore, the IndiaAI Mission reflects the government’s focus on advancing AI research and applications, positioning
The introduction of the Anusandhan National Research Fund and a financing pool of Rs. 1 lakh crore to spur private sector-driven research and innovation is a game-changer. This fund will power basic research and prototype development, driving commercial-scale innovation and enabling startups to bring cutting-edge solutions to the market.
Additionally, the Finance Minister’s announcement of a PM Package with five schemes aimed at facilitating employment and skilling, along with a provision of Rs 1.48 lakh crore for education, employment, and skilling, underscores the government’s commitment to building a skilled workforce that will drive the startup ecosystem forward.
Swati Bhargava, Co-Founder of CashKaro: The Union Budget 2024 is a significant step forward for India’s growth, focusing on empowering women in the workforce, supporting employee welfare, and driving innovation. The allocation of over ₹3 lakh crore for schemes benefiting women and girls, along with new initiatives like skilling programmes and salary support for first-time employees, highlights the government’s commitment to gender inclusivity and employment generation.
For startups, the abolition of the angel tax for all investors is a significant boost, fostering a more vibrant and innovative startup ecosystem. The reduction of the TDS rate on e-commerce transactions from 1% to 0.1% is a crucial step for digital businesses, easing the tax burden and encouraging growth. Additionally, the comprehensive review of the customs duty structure over the next six months and the proposal to decriminalize TDS delays up to the filing of the tax date reflect a forward-thinking approach to taxation. Overall, these measures will propel India towards a brighter, more innovative future, driving economic growth and development across various sectors.
Rohan Bhargava, Co-Founder of CashKaro: The Union Budget 2024 brings substantial changes to personal finance that will benefit a large number of taxpayers. The increase in the standard deduction from ₹50,000 to ₹75,000 and the revision of the tax slab limit for the 5% tax rate from ₹5 lakh to ₹7 lakh will significantly enhance disposable income. These changes will provide much-needed financial relief to the middle class and boost overall consumption.
Furthermore, the proposal to increase the deduction of employer expenditure towards NPS from 10% to 14% of the employee’s salary will improve social security benefits for the workforce. The revamp of the capital gains tax regime will impact investment decisions and financial planning, ensuring a more balanced and fair approach to taxation. These measures collectively contribute to a more robust and financially secure environment for individuals and families across India.
Gunjan Agarwal, Co-founder of XYST: Abolishing Angel Tax will have a long-term impact on startup founders. This will not only motivate angel investors but also help to encourage entrepreneurial spirit in the Indian business domain. Additionally, the job generation push, coupled with the government’s financial assistance will help startups acquire more talented professionals, leading to cumulative growth in the long term. This Union Budget is full of opportunities for Indian startups pushing to become the next Unicorn, and governmental assistance is bolstering it to ensure success and growth.
Ujjwal Minocha, Co-Founder and COO of Velmenni: Budget 2024 brings in a significant boost for ‘Make in India’ in the defense sector to uplift domestic markets, which is a positive sign. This initiative is expected to bring fundamental changes in the next 3-4 years by generating employment and placing India on the global map as a center for defense sector exports.
AltGraaf Jayaprakash, K, Chief Growth Officer, AI Growth Limited (Parent company of altGraaf): We are delighted by abolition of angel tax. This would boost investments in the startup ecosystem and create jobs. We are also delighted to see that government is moving towards parity in taxation between financial asset classes as well as non-financial assets. Additionally, credit boost to MSME sector with guarantees, reduction of corporate tax rate on foreign companies from 40% to 35% and some minor improvements to New tax Regime promotes job & economic growth.
Ravi Kaushik, Executive Director, Head of Asia Investments, Flourish Ventures: The scrapping of angel tax is a very progressive step in the right direction by the finance minister. This will not only open up opportunities for startups to freely raise capital from India’s thriving middle class, but also significantly reduce disputes and tax uncertainties. We wholeheartedly welcome this step.”
Moin Ladha, Partner at Khaitan & Co: Start up if incentivised well will be able to improve the distribution/funding and profitability for agricultural produce. This being one of the key focus areas in this budget. Special incentives for manufacturing sector which is anyways labour intensive will make the sector more attractive for foreign direct investment and will fosters growth of this sector. However, this being limited to first time employees will create a challenge regarding the ability of such employees to be involved in skilled jobs.”
“The government has announced schemes to provide (i) education loans of up to INR 10 lakhs for students studying in domestic institution with an interest rate of 3%, and (ii) loans of up to INR 7.5 Lakhs for individuals backed by guarantee from a government fund for promoting business skill development. The schemes are in line with government’s other schemes to make India ‘aatmanirbhar’ such as Make in Bharat and establishment of GIFT City to encourage investments in India. This will not only reduce foreign exchange spending but will also provide relevant opportunity to students for growth /employment and evaluations entrepreneurial opportunities.”
“Keeping the promise of Viksit Bharat, the government has not left the MSME sectors behind. The budget promises to prioritise strengthening and aiding the MSME sector by introducing credit guarantee schemes, continuing guarantee covers during stress period and developing e-commerce hubs for MSMEs to compete in the global market. With India being the hub of global trade, empowering small and medium businesses will be a step towards our mission of continued growth.”
“Currently, Indian limited liability partnerships (LLPs) can opt for closure by way of (i) striking off under the Limited Liability Partnership Act, 2008 (LLP Act); or voluntary winding up by the NCLT under the LLP (Winding up and Dissolution Rules) 2012; or voluntary liquidation under Insolvency & Bankruptcy Code 2016. The Government has announced measures to reduce timelines for such voluntary closures. This will allow for ease of doing business in India and will promote LLP as a form of setting up a commercial presence.
With the intention of simplifying cross border transactions, the government has proposed of introduce changes in foreign investment and overseas investment framework to (i) simplify the regulations, (ii) nudge priorities, and (iii) promote opportunities for the use of Indian currency for making overseas investment. This could mean changes being introduced to encourage overseas investment by resident Indians from the IFSC / GIFT City and development of designated special economic zones. Also nudging priorities seems to suggest greater surveillance on compliance and greater monitoring of investment in sensitive sectors.
Easing foreign direct investment could also lead to a more structured approach for considering government approval for investments under the approval route under the press note 3 ( from bordering nations ) or otherwise.
Devesh Purohit, Proprietor of C Suite Skincare.: “As an Indian, it fills me with pride when the Honourable Finance Minister confirms that India’s economic growth will shine and that simultaneously also gives confidence to the aspiring Entrepreneur in me. It is encouraging to see that this Union Budget will focus on MSME too apart from other tasks as MSME is a major employment provider and has business potential for Entrepreneurs and Startups. I think the 9 priorities given by the GOI in this particular budget are interconnected for a holistic social and economic growth of the nation. As D2C is a growing and a million dollar industry in India, a reduction of 0.1% of TDS rate will enhance some cash flow among the C Suite of relevant companies. I wish the government all the very best to accomplish their goal and vision of Vikasit Bharat by 2047.”
Rajeev Baid, Founder- Chai Chun and MD of Okayti. As an entrepreneur deeply rooted in the tea industry and the startup community, I am encouraged by the provisions in this year’s budget. The increased allocation for government-backed venture capital initiatives and grants specifically for agri-tech startups will greatly benefit innovative tea ventures, driving growth and sustainability in our sector.
The reduction in GST rates for startups and the simplification of compliance processes will ease financial and administrative burdens, allowing us to focus more on innovation and expansion. The introduction of tax holidays for the initial years of operation is a significant boost, encouraging new entrepreneurial endeavors in the tea industry.
The investment in digital infrastructure, including the expansion of high-speed internet access to rural and remote areas, will facilitate better connectivity for tea estates and help integrate advanced technologies like AI and IoT in tea cultivation and processing. This move is crucial for modernizing our industry and improving operational efficiency.
Furthermore, the focus on skill development programs tailored for the agri-tech and tech industries will ensure that we have a workforce equipped with the necessary skills to drive future innovations. This initiative is vital for sustaining growth and maintaining our competitive edge.
Overall, this budget demonstrates a strong commitment to nurturing both the traditional tea industry and the emerging startup ecosystem. I am optimistic that these measures will create substantial opportunities for growth, innovation, and sustainability in our sector.
Avneet Singh Marwah, CEO of SPPL, Exclusive brand licensee of Blaupunkt TVs in India: The Union Budget 2024 demonstrates a strong commitment to job creation in the manufacturing sector. By providing targeted incentives for EPFO contributions, the government aims to generate significant employment opportunities for both employers and the 30 lakh young people entering the workforce. This initiative reflects a strategic approach to meeting employment needs in our rapidly evolving economy.
With a substantial allocation of INR 2 lakh crore towards skilling programs, the budget emphasizes equipping our workforce with the skills necessary to succeed in a competitive global market. The focus on Micro, Small, and Medium Enterprises (MSMEs) is further supported by the introduction of a credit guarantee scheme, designed to enhance the financial stability and growth potential of the vital enterprises.
Additionally, the budget’s focus on the middle class is evident through tax relief measures, such as an increase in the standard deduction for salaried individuals and additional benefits under the new tax regime. These measures aim to boost disposable income and stimulate consumer spending, thereby fostering economic growth.
In summary, the Union Budget 2024’s initiatives in the manufacturing sector represent a forward-thinking strategy to create sustainable jobs, enhance skills, and support MSMEs. These measures are poised to play a crucial role in empowering our youth, strengthening the middle class, and guiding the nation towards a prosperous future.
Prateek N Kumar, Founder and CEO, NeoNiche Integrated Solutions: The recent Budget represents a comprehensive strategy aimed at fostering growth across various sectors of society. By focusing on employment, skilling, MSMEs, the middle class, the underprivileged, women, youth, and farmers, it presents a holistic and inclusive approach. The nine priorities outlined for the coming years—productivity and resilience in agriculture, employment and skilling, manufacturing and services, urban development, energy security, infrastructure, innovation, and R&D, and next-generation reforms—underscore a commitment to well-rounded development. This emphasis on job creation and boosting consumption is set to significantly benefit the consumer goods, real estate, and automotive sectors. It’s an encouraging roadmap for our nation’s future.
Prasad Sreeram, CEO & Co-Founder, COGOS: The launch of PM Gram Sadak Yojana Phase 4, aimed at providing all-weather roads to 25,000 rural habitats, is a monumental step toward enhancing rural connectivity and integrating these regions into the broader economy.
The expansion of Sidbi branches in MSME clusters and the enhancement of Mudra loans to ₹20 lakh will empower small businesses by providing essential credit for sustainable growth. The new MSME credit assessment model based on digital footprints is a significant advancement, opening new avenues for MSMEs, particularly those without formal accounting systems.
These measures highlight the government’s dedication to strengthening the logistics and MSME sectors, fostering economic growth, and creating a more inclusive and resilient economy. Additionally, proposals to expand safe hub rules, streamline transfer pricing, and abolish the angel tax for all investment classes will further promote investment, bolster the startup ecosystem, and support innovation.”
Vingish K Vijyan, Founder, 90+ My Tuition App: In the FY25 budget, the government has demonstrated a strong commitment to enhancing education and employment opportunities by allocating ₹1.48 lakh crore. This substantial investment highlights the critical need to support and prepare our youth for future challenges. A major component of this commitment is the introduction of financial assistance for higher education loans, allowing up to ₹10 lakh for students in domestic institutions. The provision of e-vouchers to cover 3% annual interest on these loans for one lakh students annually significantly alleviates the financial burden on families and promotes access to quality education. Additionally, the new scheme to offer internship opportunities at 500 top companies to one crore youth over five years is a forward-thinking initiative. By providing 12 months of real-world business exposure, this scheme equips students with essential skills and knowledge, enhancing their employability and ensuring they are well-prepared for a competitive global economy.
Kirang Gandhi, Personal Financial Mentor, K.Gandhi and Associates: “Investing in the infrastructure sector is highly promising as the government’s substantial ₹11.11 lakh crore capex allocation, representing 3.4% of GDP, underscores a strong commitment to economic growth and development. This significant public investment fosters job creation, boosts demand for materials, and enhances connectivity, which in turn stimulates broader economic activity. As infrastructure projects advance, they generate sustainable long-term returns, making the sector an attractive investment opportunity.
Navin Honagudi, Founder & Managing Partner of Elev8 Venture Partners: The announcement of the abolishment of angel tax has come at the most opportune time, especially since global startup funding has seen a decline of almost 30% in the last year. Reducing the tax on long-term capital gains arising from the sale of shares of startups to 12.5% will boost further innovation and entrepreneurship among the startup community and may even attract further global investors to India. This move mirrors tax measures of other major nations, propelling Indian GDP growth. Furthermore, with 44% of Indian startups situated outside large cities, such a step will further boost the expansion of innovation hubs in Tier-2 and Tier-3 cities, thereby promoting balanced regional development and tapping into India’s talent pool. This would foster a more risk-capital-friendly environment, increasing the likelihood of home-grown global digital behemoths, while also lowering technology dependence and promoting economic sovereignty in the long run.
Satyabrata Satapathy, CEO, BonV Aero: The budget 2024 – 25 is a significant step forward for the deep tech sector in India. By increasing allocations towards research and development, and providing incentives for innovation, the government has demonstrated its commitment to fostering a robust ecosystem for emerging technologies. This budget not only recognizes the critical role that deep tech plays in driving economic growth but also sets the stage for startups like BonV Aero to push the boundaries of innovation in areas such as drone technology and smart manufacturing. We are particularly encouraged by the support for infrastructure development and skill enhancement, which are crucial for scaling our operations and staying competitive on a global stage. Overall, these measures will help us accelerate our mission of delivering cutting-edge solutions and contributing to India’s technological advancement.
Rajesh Jaggi – Vice Chairman – Real Estate, Everstone Group: IndoSpace lauds the government for taking the necessary steps towards developing investment-ready plug-and-play industrial parks with comprehensive infrastructure in 100 cities. Together with states and the private sector, this pioneering step has the potential to transform both industrial development and urban planning in a big way. Under the National Industrial Corridor Development Program, these projects are going to serve as vibrant economic centres that drive development as well as innovation poised to create a lasting impact.
Vikas Singh, Co Founder of NFTFN, (a web3 fintech startup).:The 2024 Budget presents a mixed outlook for the startup community. On a positive note, the abolition of the Angel tax is a significant development that has been warmly received by founders and angel investors. This change is expected to provide a substantial boost to the entrepreneurial ecosystem in India. The budget’s emphasis on digital public infrastructure and the digitalization of the economy is another favorable aspect for tech startups focused on developing large scale applications for the Indian market.
However, the securities markets face less encouraging news. The increase in short-term capital gains tax from 15% to 20%, alongside the rise in long-term capital gains tax from 10% to 12.5%, and the hike in the Securities Transaction Tax (STT) on Futures & Options (F&O) transactions, are anticipated to negatively affect investors. The immediate reaction from the markets has been unfavorable.
In the cryptocurrency sector, there was an expectation that the government would align its taxation policy with other asset classes to foster growth and investment. Regrettably, this opportunity was not seized, marking a missed chance to further support startups and investors within the crypto space.”
Vidur Varma, CEO of Agri Wings: We commend the Union Budget presented by Finance Minister Nirmala Sitharaman for its comprehensive focus on empowering farmers and enhancing the agricultural sector. The emphasis on increasing MSP for all major crops and prioritizing productivity and resilience in agriculture is a significant step towards securing farmers’ livelihoods. The introduction of 109 climate-resilient crop varieties and the mission for self-sufficiency in pulses and oilseeds will greatly benefit farmers.
The initiative to engage one crore farmers in natural farming over the next two years, supported by branding and certification, is a visionary move that aligns with sustainable farming practices. Additionally, the development of large vegetable production clusters and the promotion of farmer producer centres, cooperatives, and startups will strengthen the supply chain and boost rural economies.
With a substantial allocation of ₹1.52 lakh crore for agriculture and allied sectors, this budget sets a strong foundation for achieving ‘Viksit Bharat’ by 2047. We look forward to contributing to this mission by integrating advanced drone technologies and efficient farming practices, ensuring a prosperous future for our farmers.
Sandeep Aggarwal, Founder & CEO, Droom: The Union Budget 2024 has provided a much-needed boost to the Indian start-up ecosystem, aligning with PM Modi’s vision of ‘Viksit Bharat’ by 2047. The abolition of the angel tax for all investor classes is a landmark decision that will foster greater investment, spur innovation, and support entrepreneurial spirit across the country. This long-awaited reform will undoubtedly attract more domestic and foreign capital into the start-up sector, addressing the scarcity of domestic capital.
Additionally, the expansion of the tax holiday eligibility under the Startup India scheme and the reduction of the corporate tax rate on foreign companies from 40% to 35% are crucial measures that will enhance the investment landscape. These initiatives, combined with the removal of regulatory bottlenecks, are poised to drive significant growth in the start-up ecosystem, contributing to India’s economic development and global competitiveness.
E-commerce: The Union Budget 2024 has taken significant steps to strengthen the e-commerce sector, aligning with the vision of ‘Viksit Bharat’ by 2047. The reduction of TDS rate on e-commerce to 0.1% and the decriminalization of TDS delay are commendable moves that will simplify tax compliance and reduce the burden on businesses. The abolition of the 2% Equalisation Levy on e-commerce supplies from August 2024 will further promote fair competition and encourage international investments.
The establishment of dedicated e-commerce export hubs in PPP mode is a transformative initiative that will empower MSMEs and traditional artisans to access global markets, potentially increasing India’s e-commerce exports to $350 billion by 2030. This budget reflects a pragmatic approach to boosting online trade and positions India as a formidable player in the global digital economy.
Rajat Grover, Founder & CEO, Elite Marque: The Budget 2024 introduces new opportunities for vegetable production and its supply chain. By incentivizing innovation and streamlining the market entry process, this initiative aims to boost production and improve the efficiency of distribution networks. Startups in agri-marketing and logistics will play an important role in connecting farms to homes, using technology to optimize supply chains and ensure fresh produce reaches consumers efficiently.
Due to the hike in global interest rates, investments in Indian agritech startups fell by 45% between FY 22 and FY 23. With this amendment, we expect increased visibility from VCs and investors, seeing the government take initiatives in this space. More agriculture-focused incubation centers should emerge in Tier 2 and Tier 3 cities, providing startups with direct benefits in building technology, mentorship, grants, and R&D. This will also encourage talented individuals from these regions to contribute to the agritech sector, fostering innovation and growth.
The MSME credit scheme will provide vital financial support to new ventures. With easier access to credit, startups can invest in infrastructure, technology, and skilled manpower, accelerating their growth and contributing significantly to economic revitalization. This approach not only supports scalability but also strengthens the economy by fostering a competitive and resilient MSME sector. We will see more business initiatives from Tier 3 and Tier 4 cities, the scheme will attract more talented individuals from these areas, enriching the startup ecosystem with diverse and dynamic talent.
Aashi Gupta, Founder of The Salt Cafe: The Budget 2024 announcement is a significant step forward for the agritech sector. By supporting startups throughout the vegetable supply chain and investing in digital public infrastructure, the government is laying a solid foundation for innovation and efficiency in agriculture. At The Salt Cafe, we value the role that high-quality, fresh ingredients play in delivering exceptional dining experiences. We are thrilled to see the government’s commitment to enhancing connectivity, storage, and marketing for farmers, as well as the introduction of digital tools that will streamline supply chains. These measures will not only boost the growth of agritech startups but also ensure that businesses like ours can continue to source the best produce, ultimately benefiting our customers.
Yogesh Sharma, CEO and Founder of Karigari by Chef Harpal Singh Sokhi: The budget’s focus on developing street food hubs and enhancing tourism infrastructure is promising for the food and hospitality sectors. The support for agritech startups and improvements in the vegetable supply chain will benefit our industry by ensuring a steady supply of quality produce. We look forward to leveraging these initiatives to further elevate our offerings and expand our impact,”
Saurabh Kumar, Founder of Cayenne: The Budget 2024 announcement is a promising boost for the agritech sector. By investing in startups that enhance the vegetable supply chain and introducing advanced digital infrastructure, the government is setting the stage for significant progress in agriculture. At Cayenne, The House of Spice, we’re dedicated to providing an exceptional dining experience with the finest ingredients. This initiative will improve supply chain efficiency, from connectivity and storage to marketing, which will benefit not only startups but also businesses like ours that rely on high-quality produce. We look forward to the positive impact these measures will have on our ability to deliver outstanding meals to our guests.
Chef Ashish Bhasin, Founder of Say Fontina: The Budget 2024 announcement is a game-changer for the agritech sector and a win for businesses focused on quality. The government’s commitment to supporting startups in the vegetable supply chain and advancing digital infrastructure is crucial for enhancing agricultural efficiency. At Say Fontina, where we pride ourselves on using the freshest, highest-quality ingredients for our Italian and Mediterranean dishes, we’re excited about the positive ripple effect these measures will have. Improved supply chain connectivity and storage will ensure a more reliable and sustainable source of produce, allowing us to continue offering our guests the exceptional flavors and dining experiences they’ve come to love
