But, industy awaits the positive effects of the budgetary allocations on the well-being of our citizens.
Here is a collection of reactions to the Union Budget 2024-25:
Amit Vasistha founder GALF (popularly known as MyGALF) shared his reaction to Finance Minister Nirmala Sitharaman’s budget. :
1) The Union Budget 2024-25 reflects a robust commitment to the growth and digital transformation of MSMEs. With an impressive 41.6% increase in allocation for the MSME ministry.
2) As for startups, govt’s decision to rewards the first time employees and employers alike is a revolutionary step encouraging companies to retain and grow employees
3) As employers, we can now provide internship to young graduates and get benefits since govt shall pay for the internship salary and we can take the costs from our CSR funds
4) Increasing the Mudra loans limits to 20 LAKHS is a very welcome step for MSMEs and Startups
5) A national agenda on DPI applications covering areas like e-commerce and healthcare to significantly support GALF’s agenda
6) The bumper announcement is the total removal of Angel Tax for all asset classes. This has been a long standing issue which startups have been highlighting since they attract the bulk of angel investments.
7) Govt however left the industry longing with no increased allocation to Startup India program.
Hopefully this shall be a separate announcement as part of the Ministry of IT allocations.
Dr. Nikhil Sikri, Co-founder & CEO of Zolostays: The government’s initiative to reimburse employers up to Rs 3,000 per month for two years towards their EPFO contribution for each additional employee is a commendable move. This scheme not only promises to incentivize the employment of 50 lakh individuals but also significantly benefits the hospitality sector, which employs a large workforce. We believe this policy will provide a much-needed boost to our industry, enabling us to expand our team, enhance our services, and contribute to the overall economic growth. We look forward to leveraging this support to create more job opportunities and drive innovation in our sector.
Subha Sri Narayanan, Director, CRISIL Ratings: The measures pertaining to tax rates on capital market transactions – Securities Transaction Tax on derivatives, Long Term Capital Gains tax, and Short-Term Capital Gains tax – are aimed at bringing in greater stability in the equity markets by incentivising long-term investment activity and curbing the derivatives segment, where traded volume has risen over 99%. There could be an impact on market volume in the near-term that, in turn, could affect the revenue of brokerage houses which have enjoyed rising profitability because of the market upcycle. At the same time, they have also had to realign their business models to manage the evolving regulatory environment, with the most recent change being the revision in the charges levied on stockbrokers by market infrastructure institutions.
Kushal Patel, Managing Director, Axita Cotton: The Finance Minister announced the development of twelve new industrial parks under the National Industrial Corridor Development programme. These parks will be equipped with complete infrastructure, and ‘plug and play’ parks will be established in or near 100 cities. These provisions will significantly boost industries across the spectrum, and we commend the budget for its strong focus on industrial growth.
Smita Shetty Kapoor, CEO & Co-founder, Kelp: The latest Union Budget marks a transformative step forward, particularly for the HR sector and our mission at Kelp. The abolition of the angel tax and the consolidation of charity tax exemptions will simplify financial operations and promote innovation.
Moreover, the government’s ambitious plans to invest ₹2 lakh crore in skilling and employment schemes over the next five years are both commendable and inspiring. With initiatives aimed at reaching 4.1 crore youth, including a comprehensive internship scheme for one crore individuals, we are witnessing a substantial commitment to developing a skilled and industry-ready workforce.
At Kelp, where our core focus is on creating safe, happy, inclusive and productive workplaces, these developments align perfectly with our vision. The new budget reflects a supportive environment for both businesses and employees, reinforcing our dedication to fostering workplaces where every individual can thrive and contribute meaningfully. We look forward to leveraging these opportunities to drive positive change and further our mission of building exceptional work environments.
Akshat Rathee, Co-founder and MD of NODWIN Gaming: We’re happy to hear the Finance Minister’s announcement to rollback the Angel tax for all investors in today’s Union Budget. This move will create a vibrant environment for startups across the nation and is a major boost for Indian gaming and esports entrepreneurs, leading to more opportunities as well as higher engagement with the youth. The plan to simplify FDI rules and promote the use of the Indian Rupee for overseas investment is a promising approach that will encourage global entertainment giants to invest in India, further strengthening our position as a global cultural and entertainment destination.
For esports, focusing on enhancing sports infrastructure in Bihar is a positive step since the state has already shown its commitment to integrating esports into mainstream sports. This additional government support will help nurture young talent and promote esports as a new-age sport nationwide.
Additionally, reducing the BCD on mobile phones, chargers, and PCDA will make smartphones more affordable, which is fantastic for mobile gaming enthusiasts. This will boost mobile gaming adoption within the nation and further strengthen India’s position in the global mobile gaming market, bringing us closer to becoming the largest. Overall, we’re excited to dive into these opportunities to drive growth and make waves.
Roby John, CEO and Co-Founder of SuperGaming: The Union Budget, presented by Finance Minister Nirmala Sitharaman, offers multiple benefits to the country’s video gaming ecosystem. The reduction in basic custom duty on mobile phones is a move that will make smartphones more affordable, which is excellent news for India’s extensive mobile gaming community. For our upcoming game, Indus, and other games in the market, this means reaching a broader audience and accelerating growth in the mobile gaming sector.
Additionally, the removal of the Angel tax is a major boost for the entire startup ecosystem. This will give relief to more gaming and esports entrepreneurs who want to bring their innovative ideas to life, thereby strengthening the gaming and esports ecosystem in India. Overall, we are confident that these measures will propel India’s tech and video gaming industry, bringing India’s gaming culture forward.
Sourabh Deorah, CEO & Co-founder, AdvantageClub.ai: Today’s Budget announcement about abolishing the angel tax for all classes of investors will significantly boost growth and create a more supportive environment for angel investments in startups. This should help reduce the stress in the market for early stage startups. With increased R&D investments, there will be creation of newer industries and more job opportunities that will ultimately benefit the entire startup ecosystem and position India as a global innovation hub. Also, the changes in tax slabs along with increased standard deduction brings much-needed relief to salaried individuals, enhancing their disposable income and overall economic well-being. Additionally, it’s encouraging to see a strong focus on youth empowerment with internship opportunities for 1 crore young people across 500 companies and one-month wage support for all first-time formal job entrants. At AdvantageClub.ai, I have always advocated for hiring fresh talent. Modi 3.0’s top nine priorities will generate ample opportunities for Indians and transform India for a brighter future.
Nehal Mota, Co-Founder Finnovate: The full budget presented by Nirmala Sitharaman on July 23rd had some important implications for financial and investment planning. Broadly, there are 3 ways in which this budget could impact financial planning.
Firstly, the budget raised income tax slabs under the new tax regime and made income up to Rs3 lakhs fully tax-free. This tweak is expected to save Rs17,500 in tax for salaried persons. Combined with the raising of standard deduction limit from Rs50,000 to Rs75,000, it will give more investable savings for salaried persons.
Secondly, the increase in STT on derivatives was always coming after warnings from the SEBI chairperson. The STT on sale of options was raised 16-fold from 0.0625% to 0.10%. At the same time, the STT on sale of futures was hiked from 0.0125% to 0.02%. These two moves are likely to curb retail speculation in F&O and push them into serious financial planning.
The most important was the capital gains tweak. LTCG was raised from 10% to 12.5% neutralized by exemption limit hiked from Rs1 lakh to Rs1.25 lakh. In addition, STCG tax was raised from 15% to 20%. This is likely to dilute the TINA (there is no alternative) value of equity investing and push people into more rational asset allocation across equity and debt. That is the big contribution from this budget for financial planning.
One interesting feature was the simplification of capital gains on real estate. While LTCG tax on real estate was cut from 20% to 12.5%. This was neutralized by scrapping of indexation benefits.
Sanjay Jain, Director, ELANPRO: The proposed schemes and policies in the Union Budget 2024-25 suggest a strong and inclusive strategy for driving economic growth, enhancing employment prospects, and promoting sustainable development across multiple sectors. Emphasizing on skill development, support for MSMEs, urban and rural advancement, women’s involvement, energy security, and technological innovation, it sets out a plan for ‘Viksit Bharat’.
The budget prioritizes enhancing MSMEs by introducing a new credit assessment model based on digital footprints, and offering term loans for machinery and equipment purchases without requiring collateral or a third-party guarantee. Moreover, establishment of new SIDBI branches in MSME clusters to enhance reach and provide direct credit to businesses will significantly improve cash flow in the market and support various industries including ours.
Focus on domestic tourism is expected to boost HoReCa growth, which in turn will boost the commercial refrigeration industry. The budget also allocates financial support to establish 50 irradiation units in the MSME sector and 100 NAB-accredited food quality and safety testing labs. These measures will enhance food safety and quality, making compliance crucial.
The standout measure of this budget is the focus on youth employment especially measures such as job creation in manufacturing is expected to benefit 30 lakh youth and their employers. The budget also aims to revitalize agriculture through several measures. By concentrating on vegetable production and improving the supply chain, farmers will achieve better returns through crop diversification and expanded market access. Large-scale vegetable production clusters that will be established near major consumption centers will help farmers capitalize on market opportunities.
While these measures are encouraging, it’s vital to ensure they are effectively implemented and maintained to translate these announcements into actual progress on the ground. We eagerly await the positive effects of the budgetary allocations on the well-being of our citizens.
Dhawal Jain, Co Founder of Mave Health: Mave Health appreciates the government’s forward-thinking Union Budget 2024-25, especially the collaboration with the private sector to develop small and modular nuclear reactors. This innovative approach is a great example for other industries, including healthtech.
The Rs 90,658.63 crore allocation to the Union Health Ministry is promising, but more initiatives are needed to enhance mental health services and infrastructure. The budget’s focus on boosting domestic investments is a positive step for the Indian startup ecosystem. However, addressing corporate tax and redomicile taxation is crucial for creating a startup-friendly environment.
The rise of startups in the BFSI sector, driven by innovations like UPI, highlights the potential of tech-driven solutions. We hope for continued government support for healthtech innovations, similar to the focus on new technologies in the nuclear energy sector.
We look forward to collaborative efforts that not only enhance the healthtech landscape but also ensure that startups like Mave Health can contribute meaningfully to the nation’s growth and well-being.
