By creating a more favourable investment climate, the government is giving a big boost to entrepreneurship, helping new ventures grow, driving economic development, and creating jobs
Anil Gudibande, Co-founder of 1crowd: “The Union Budget announcements by the Finance Minister Nirmala Sitharaman are a testament to the government’s recognition of startups as vital drivers of economic growth. The emphasis on nurturing these enterprises highlights their importance as a key growth engine for the future. The removal of angel tax is a significant relief and fulfils a longstanding industry demand. Importantly, it is a very mature step by the Finance Minister as this will only spur innovation forward. By creating a more favorable regulatory framework, the government is enabling startups to thrive and contribute significantly to the economy.”
Manish Tewari, Co-Founder, Spydra Technologies: The budget’s focus on blockchain regulations is highly encouraging, as it promises clearer guidelines that will enhance business confidence and drive innovation for Spydra. The emphasis on sustainability and environmental policies, such as support for clean energy projects, aligns with our capabilities to track and verify sustainability metrics using blockchain technology. Additionally, substantial investments in digital public infrastructure and innovation support Spydra’s mission to accelerate technology adoption and digital transformation. These elements of the budget present significant opportunities for Spydra to expand its solutions, drive innovation, and ensure regulatory compliance, positioning us for continued growth and success.
Amit Kapoor, Founder and CEO, Eupheus Learning: The FM’s Budget for 2024-25, and the allocation towards education, employment, and skilling, is noteworthy. The focus on skilling the youth with the industry needs and providing education loans with an attractive subvention scheme is a game-changer.
At Eupheus Learning, we believe that identifying the right skills should happen inside classrooms in schools. An enabling environment of in-classroom and at-home learning ensures that our young learners get the infrastructure and support needed by them to work towards their respective aspirations. These measures from the government are a good step forward and we are sure that there will be percolation down to the school level in each district. This percolation will equip students with the skills they need to excel in their careers and contribute to the economy.
Vinod K Singh, Co-Founder and CTO of Concirrus: The abolition of the angel tax in the Union Budget 2024 is a huge win for startups and investors. This change removes a major roadblock, making it easier for startups to get funding and for investors to back innovative ideas without hesitation. By creating a more favorable investment climate, the government is giving a big boost to entrepreneurship, helping new ventures grow, driving economic development, and creating jobs. This shows the government’s strong commitment to supporting the startup ecosystem and ensuring its ongoing success. Getting rid of the angel tax will spark more investment, driving the entrepreneurial spirit in India to new heights
Rajiv Lamba, Founder, SurveySensum: The 2024-25 budget includes positive highlights such as the abolition of the angel tax for all investor classes, boosting the startup ecosystem by reducing tax barriers for AI startups. However, it lacks specific initiatives for ongoing AI advancement and technological inclusion, a notable shift from last year’s focus on AI research across key sectors. While budget proposes skilling 20 lakh youths over the next five years and introduces the Anusandhan National Research Fund with Rs 1 lakh crore to support deep tech innovation, ensuring these upskilling programs are used for AI based skilling and funds are easily accessible to startups in the deep tech and AI space is essential for driving future growth.
Vinod K Singh, Co-Founder and CTO of Concirrus: The Union Budget 2024 marks a transformative moment for India’s startup ecosystem. The abolition of the angel tax is a game-changer, removing a major barrier and making it easier for startups to attract crucial early-stage funding. This move, coupled with enhanced support through expanded funds and low-interest loans, will significantly bolster the entrepreneurial spirit in our country. By fostering a more favorable investment climate and addressing key challenges faced by startups, the budget paves the way for accelerated innovation and growth. It’s a clear signal that the government is committed to nurturing the startup ecosystem, which will drive job creation and economic development across India.”
Raja S (Audiologist, Founder, and Managing Director), Hearzap: The removal of the angel tax is a game-changer, easing investment and boosting innovation in healthcare solutions. Initiatives like expanded Funds of Funds and low-interest loans offer crucial financial backing, aiding our growth and technology adoption. We’re eager to utilize these opportunities to enhance scalability and integrate advanced innovations into patient care. The budget’s focus on talent development through internships will further strengthen our sector. Overall, the Union Budget 2024 sets a strong foundation for healthtech startups to thrive and contribute meaningfully to India’s healthcare landscape. By embracing these reforms and opportunities, we are confident in our ability to accelerate positive change and improve healthcare outcomes for all.”
Rajiv Lamba, Founder, SurveySensum: The 2024-25 budget includes positive highlights such as the abolition of the angel tax for all investor classes, boosting the startup ecosystem by reducing tax barriers for AI startups. However, it lacks specific initiatives for ongoing AI advancement and technological inclusion, a notable shift from last year’s focus on AI research across key sectors. While budget proposes skilling 20 lakh youths over the next five years and introduces the Anusandhan National Research Fund with Rs 1 lakh crore to support deep tech innovation, ensuring these upskilling programs are used for AI based skilling and funds are easily accessible to startups in the deep tech and AI space is essential for driving future growth.
Ghazal Alagh, CIO & Co-founder, Honasa Consumer Limited.: The government’s latest budget marks a significant leap forward for the startup ecosystem, especially with the abolition of the angel tax. This move will provide much-needed relief and encourage more investments, giving the startup community a substantial boost. The focus on digital transformation and AI integration is particularly exciting for the beauty and personal care industry. Increased support for technological advancements and the push for digital infrastructure will enable startups to leverage cutting-edge technologies to enhance their products and customer experiences. As a woman entrepreneur, I find these measures encouraging and believe they will catalyze a new wave of growth and opportunities within the startup ecosystem.
Khadim Batti, Co-Founder & CEO, Whatfix: The Union Budget 2024 is a significant step forward for the tech and startup ecosystem. Its pro-development stance directly addresses key industry expectations. We applaud the government’s progressive vision to foster a more dynamic and innovative startup landscape across the nation.
The abolition of the Angel Tax is a critical move, providing much-needed relief to startups during the funding winter. Simplifying FDI and overseas investment rules, along with promoting the Indian rupee for global transactions, will further bolster investor confidence.
We are thrilled to see the startup ecosystem’s expectations realized with the revised ESOP taxation structure. This change will incentivize talent retention and significantly boost employee morale. Streamlined regulations, transfer pricing, and employment procedures will create a more conducive environment for businesses to thrive.
We are particularly impressed by the government’s strategic focus on human capital development. The proposed skilling of 20 lakh youth and the upgrade of 1,000 industry training institutes are pivotal steps towards creating a future-ready workforce. By aligning education with emerging technologies and industry demands, the budget positions India to become a global talent hub. This strategic investment will undoubtedly catalyze job creation, drive economic growth, and strengthen India’s position in the global value chain.
Overall, this budget reinforces our belief in India’s potential to become a $7 trillion economy by 2030. The Indian SaaS industry is well-positioned to flourish under these supportive policies. We are excited to contribute to India’s digital transformation and global leadership.
Jeet Chandan, Co-Founder of BizDateUp – The abolition of the Angel Tax marks a transformative milestone for the Indian startup ecosystem. By eliminating this long-standing barrier, the government has unlocked immense potential for early-stage startups and angel investors alike. This progressive move will not only ease the financial burden on startups but also attract a broader range of investors, fostering a more vibrant and supportive investment climate. At BizDateUp, we believe this policy change will catalyze innovation and entrepreneurship across the country, paving the way for India to emerge as a global leader in the startup arena. We are excited to see how this development will drive growth, create jobs, and accelerate the journey of countless startups towards success.
Sibasish Mishra, Founder, Bookingjini: The FY25 budget offers a mix of promising initiatives and missed opportunities for the hospitality and startup sectors. Infrastructure development, like new airports and sports facilities in Bihar, will boost tourism, and developing Nalanda as a tourist center is a positive step. However, more direct support for startups in the hospitality tech space would have accelerated growth and innovation. The abolition of Angel Tax simplifies investments, but additional targeted incentives for tech startups are needed. Overall, the budget lays a solid foundation, but there’s room for more focused support to maximize industry growth, said.
Harshita Singh, Founding Business Head- Times Prime, Business Head – Cards: The Union Budget 2024, is a forward-looking budget that is aimed at driving economic growth for the country. The substantial reforms given in taxation on financial gains and the abolishment of the ANGEL tax will boost investment and stimulate economic activity. However, reforms and reliefs pertaining to AI and fintech industry would have been a welcome gesture to further propel one of the largest growth drivers in the India story.
Soham Avlani, General Partner, PROMAFT Partners: The government has announced an important reform in the treatment of long-term capital gains (LTCG) from the sale of startup shares. In a move to bring parity with listed shares, LTCG on the sale of unlisted shares has been rationalized to 12.5%, with the removal of indexation for calculation. This long-awaited change is expected to simplify tax computation for taxpayers and promote investment in startups.
Amit Sharma, General Partner, Cactus Partners:As per our initial evaluation, the budget seems to be encouraging for the Indian startup ecosystem. The proposal to remove the angel tax has come as a big relief for the industry and will help the ecosystem to flourish. It had been a long-standing demand and a need for the industry. Start-ups and investor ecosystem require an environment of faith and trust to grow and contribute materially to the economy and innovation. The other positive step is the establishment of an INR 1000 crore venture capital fund dedicated to the space sector. This move underscores the government’s commitment to fostering innovation and enabling private sector participation in India’s high-potential space economy. There might be some headwinds due to the capital gain tax change; however, there will likely be further clarity on that.
Ankit Jaipuria Co-Founder, ZYOD: The budget offers a significant opportunity for manufacturing, innovation, and upskilling talent. With a major push to manufacturing-led companies and initiatives to upskill over 2 million youth in the next five years, we expect a major increase in job creation in this sector. The abolition of the angel tax is another positive development towards fostering a robust startup ecosystem that encourages more private investment. Additionally, simplifying the FDI rules will further attract more investment, and facilitate smoother trade, thereby strengthening the economy and enhancing India’s position in global trade.
Ritesh Khandelwal Co-Founder, ZYOD: The focus on manufacturing and MSMEs in this year’s budget is a welcome development. The Prime Minister’s package of 5 schemes, especially the ‘job creation in manufacturing’ and ‘Credit Guarantee Scheme for MSMEs in the manufacturing sector’, promises significant growth for the sector. The increased Mudra loan limit from ₹10 lakh to ₹20 lakh and the revised TReDS onboarding threshold will significantly benefit MSMEs.. Additionally, credit guarantee schemes and mechanisms for facilitating bank credit during stress periods are crucial steps forward. These measures will provide much-needed support, ensuring business continuity and fostering long-term growth. Notably, the ability to secure collateral-free term loans for machinery and equipment empowers MSMEs to invest in innovation and expansion. We are confident these initiatives will contribute significantly to the resurgence of the manufacturing sector.
