Industry Leaders React to Key Announcements in Budget 2024-25
- ByStartupStory | July 23, 2024
In her seventh consecutive Union Budget presentation, Finance Minister Nirmala Sitharaman delivered a series of impactful measures aimed at driving economic growth and fostering innovation. This Budget, marking the first complete financial plan of the Prime Minister Narendra Modi-led National Democratic Alliance (NDA) government in its third term, focused on the themes of empowering the poor, women, youth, and farmers. Among the highlights was the much-anticipated abolition of the angel tax, a key demand from the venture capital and private equity ecosystem. The Budget also introduced a revised income tax structure, including an increase in long-term capital gains tax, and set a lower fiscal deficit target for FY25.
The abolition of the angel tax, which has been a significant hurdle for early-stage startups and investors, was widely praised. Additionally, the Budget announced a ₹1,000 crore venture capital fund for the space economy and significant investments in education, energy, and technology sectors.
Here’s how industry leaders have reacted to these pivotal announcements:
Real Estate
Vikas Garg, Joint Managing Director, Ganga Realty
“We welcome Budget 2024 wholeheartedly as it introduced PMAY Urban Housing 2.0 with a budget allocation of Rs 10 lakh crore. It will help the lower strata of society residing in slums and ghettos to get a permanent roof over their heads. The central government will incentivize housing projects with financial aid of close to ₹2 lakh crore which will be given to the needy people at subsidized rates. Furthermore, Rental housing was also the cynosure of the Budget which will be built on PPP mode for the amelioration of industrial workers. Moreover, the Budget proclamations raise hopes and aspirations for a bright future ahead in terms of both infrastructure and housing.”
Saransh Trehan, Managing Director, Trehan Group
“In the Budget 2024, the status quo on Infrastructure spending was maintained and comprises ₹11.1 trillion which equals 3.4% of GDP. The essentiality for Housing for All becomes the mainstay for Budget 2024 yet again as the announcement of PMAY Urban Housing 2.0 becomes one of the salient attractions. Under the scheme, the government offers to provide homes at subsidized rates and allocates Rs 10 lakh crore for the initiative. The introduction of Rental housing to be built on PPP mode and upsizing of retail infrastructure will be crucial in empowering the real estate sector and housing segments and promoting all forms of property developments in the metro as well as Tier 2 and 3 cities.”
Agritech
Ashish Agarwal, Co-Founder & CTO, Weather Risk Management Services (WRMS)
“Budget 2024-2025 marks a significant milestone towards a thriving and innovative agritech future, with a strong emphasis on climate resilience and adaptation. The introduction of 109 high-yielding, climate-resilient crop varieties and the comprehensive review of agricultural research for climate-smart seeds are substantial advancements for the sector. The budget’s allocation of Rs 2.66 lakh crore for rural development and the promotion of digital infrastructure aligns well with our objectives. The focus on natural farming and the goal to engage one crore farmers in the next two years further supports sustainable agriculture. Additionally, the budget underscores the importance of collaboration among the government, private sector, and research institutions to drive innovation and scalable solutions. To fully harness this progress, increased investments in IoT, AI, and data analytics are crucial. These technologies will enhance climate risk assessment and response, providing real-time data and predictive insights to improve climate adaptation strategies and ensure more effective interventions. We are optimistic that these initiatives will drive economic growth and promote sustainable development.”
Dr. Sat Kumar Tomer ( Founder & CEO, Satyukt Analytics )
“The Union Budget’s allocation of Rs 1.52 lakh crore for agriculture and associated sectors is a monumental step towards revitalizing our agricultural landscape. The initiative to develop a digital public infrastructure in collaboration with states will modernize the sector, enhancing efficiency and connectivity. The comprehensive review and transformation of agricultural research to focus on productivity and climate-resilient crop varieties are crucial in the face of climate change. With challenge-mode funding and private sector involvement, this initiative promises innovative solutions and sustainable growth. The implementation of Digital Public Infrastructure (DPI) within three years will ensure that farmers and their lands are comprehensively covered, leading to better resource management. Additionally, the operationalization of the Anusandhan National Research Fund for basic research and prototype development, along with mechanisms for private sector-driven innovation, marks a significant advancement in agricultural research and development. This budget lays a strong foundation for a resilient and forward-thinking agricultural sector.”
Job Creation, DBT, and Skill Development
Mr. R P Yadav, CMD, Genius Consultants Limited
“Today’s budget announcement is a significant step towards bolstering job creation, particularly in the manufacturing sector. The focus on employment-linked skilling, with direct benefits for first-time formal sector entrants, is an equally promising step towards nurturing India’s workforce. The provision of one month’s wage for first-time entrants into formal sectors, complemented by a Direct Benefit Transfer of up to Rs 15,000 in three instalments, is a transformative step towards empowering 2.1 lakh young individuals. Moreover, incentivizing job creation in the manufacturing sector through schemes tied to employing first-time workers showcases commitment to fostering economic growth and expanding employment opportunities. These measures are poised to catalyze inclusive development and drive India’s journey towards a robust and resilient economy. By creating conducive environments and targeted skill development opportunities, the government aims to integrate more women into the workforce and empower them to thrive in diverse sectors of the economy. This approach addresses current challenges and lays the foundation for a more inclusive and vibrant workforce. Overall, these measures reflect a forward-looking approach to fostering economic growth and enhancing workforce participation.”
Nilesh Dungarwal, Co-Founder and CEO, WorkIndia
“We are pleased that the government is focusing on promoting self-reliance rather than providing handouts. Initiatives like job-oriented training, contributions to EPFO, collaborations for women-focused skill development programs, providing term loans to MSMEs, etc., are steps that will assist in advancing individuals up the economic ladder. This demonstrates the government’s commitment to the vision of building a self-reliant India. In light of the increasing adoption of technology, upskilling blue-collar workers has become a crucial initiative. At WorkIndia, we are dedicated to diligently ensuring that the new job opportunities created will effectively reach the intended audience, providing them with meaningful livelihoods.”
Space Tech
Vishesh Rajaram, Managing Partner, Speciale Invest
“Specialè Invest is an early investor and strong believer in India’s leadership in the global space economy, and has been one of the most active investors in this domain since 2018. Our portfolio includes investments in launch vehicles (Agnikul Comos), satellite manufacturing & earth observation (Galaxeye Space, Kawa Space), communication (Astrogate Labs), and in-orbit economy (InspeCity). The Indian space economy has the potential to reach $44 billion in the next 10 years from the current $8.4 billion (Source: IN-SPACe), expanding India’s share of the global space economy by 4x from current 2% to 8%. We strongly believe that an INR 1000 Crores fund for space startups and space economy will catalyse India’s dominance in the global space market! We believe the trust and focus from the GoI combined with the FDI policy announced earlier this year will lead to more investment participation in the sector from India and internationally.”
Mr. Srinath Ravichandran, Co-Founder and CEO, Agnikul Cosmos
“Wonderful news for all of us in the sector. This will help larger players emerge out of India’s space startup ecosystem. This also shows that the Government is continuing to strongly back its vision of making India have a larger chunk of the global space economy.”
Agriculture & Food
Rajesh Srivastava, Chairman, Prowess Advisors
“We hail the decisions announced in this year’s budget by the honorable Finance Minister. The budget has presented various policies and measures which will go a long way in strengthening the food and agriculture ecosystem in India. The allotment of INR 1.52 lakh crore for the agriculture sector and the announcement on release of new 109 high-yielding, climate-resilient seeds for 32 field and horticulture crops is very motivating for the entire sector. The initiation of 1 crore farmers into natural farming supported by certification and branding over the next 2 years is another welcoming move. Introduction of a National Cooperation Policy to promote the overall development of the cooperative sector will also empower the agriculture industry as a whole. Further, the government’s initiative to digitize land records and registrations is expected to improve India’s GDP by about 1.5% and will also significantly improve the country’s ease of doing business ranking. We hope that these policies are implemented and brought into action at the earliest to create a better operating and enabling environment for the farmers and the entire agriculture ecosystem.”
Shipping & Logistics
Pushpank Kaushik, CEO of Jassper Shipping
“Building on the interim budget’s foundation, Budget 2024-25 will significantly boost infrastructure investments. We particularly look forward to the development of the Gaya Node along the Amritsar-Kolkata route which will provide major support to the Eastern Dedicated Freight Corridor. Ports in Eastern India will see a direct benefit over the medium term for sure. This will increase the efficiency of freight movement by reducing transit times and improving logistics. Additionally, reduced congestion with smoother traffic flow.”
Mobile Phones
Kannav Thukral, Managing Director, BlackZone Mobiles
“Finance Minister Nirmala Sitharaman’s budget is a game changer for the mobile industry and the MSME segment under the ‘Made in India’ initiative. The reduction of Basic Customs Duty (BCD) on mobile phones and chargers to 15% is a significant step that will lower production costs, making Indian-made mobile devices more competitive. This move will enable the industry to reach a broader audience, and the reduced taxes will lead to higher profits and increased production. Additionally, the enhanced credit guarantee scheme and the facilitation of term loans for machinery purchases are set to invigorate the manufacturing sector. The tailored package for technology support and the new bank credit mechanism will significantly enhance digital capabilities and financial stability for new businesses and investments. By unlocking working capital and expanding the Mudra loan to 20 lakh, the government is empowering manufacturers to scale up operations without the burden of collateral. These measures will not only drive growth but also reinforce India’s position as a global manufacturing hub for mobile devices.”
Infra & Green Energy
Raaja Kanwar, Chairman & Managing Director, Apollo International Group, says, “The 2024 Budget reflects a clear grasp of India’s economic needs. It targets key areas, balancing immediate requirements with long-term goals. At its core are the allocations for infrastructure and rural development. The Rs 11.11 trillion for infrastructure will boost productivity and create jobs across sectors. The Rs 2.6 lakh crore for rural development recognizes our villages as growth engines. This will ease migration pressures, increase rural spending, and build a more balanced economy. The focus on green initiatives and energy transition puts India at the forefront of the global shift to a low-carbon economy. This is vital for our future economic strength. Empowering MSMEs through easier credit and fewer compliance burdens is a smart move. These businesses drive our economy and supporting them will spark entrepreneurship and job growth. This budget sets the stage for a stronger, more equitable, and environmentally conscious India.”
Fintech
Vishvanathan Subramanian, CFO & Director, PayMate:
The government’s projection of a 4.9% fiscal deficit for the current year, with a target of 4.5% for the next, underscores its commitment to fiscal discipline. This strategic approach is expected to bolster investor confidence, attract FDI, and foster a conducive environment for economic growth in the coming years.
The honourable FM has proposed eliminating angel tax which will be a boon for India’s startup ecosystem. This move will facilitate early-stage funding, especially for the fintech startups, accelerating their growth and encouraging them to create innovative products which will improve India’s financial inclusion and bring the country a step closer to the Digital India dream.
MSMEs are the engine propelling the economy, credit is the essential fuel. And the credit to MSMEs without collateral is an outstanding move which will enhance access to much-needed capital, fostering growth for them. The self-financing guarantee fund of Rs 100 crore will help MSMEs in covering their CAPEX needs without requiring collateral or a third-party guarantee.
The aggressive steps towards skilling and employment of the youth in India are applausive. A comprehensive scheme offering internships in 500 leading companies to one crore youth will significantly address the skill gap in Indian companies. The skilling initiatives announced today will make the nation’s youth more tech-savvy, thereby potentially reducing the skill gap in the fintech sector. By reducing employer costs, providing wage support, and providing direct incentives, the government will not only enhance their employability but also potentially accelerate economic growth by increasing consumption, driving formalization, and improving productivity.
Manish Shara, Co-founder & CEO, Zet Fintech
“The budget has touched all the key sectors of our economy and will drive growth and ease of doing business. The focus on skilling, lending for MSME, abolition of ANGEL Tax and inclusive economic development is in line with the government’s aim of Viksit Bharat. The government’s decision to simplify the new tax regime is also a welcome move that will provide relief to 40 millions salaried professionals and pensioners. Raising the limit of standard deduction to Rs.75,000 and increasing the deduction of family pensions from Rs.15,000 to Rs.25,000 is aimed at encouraging investment and promoting sustainable economic growth. However, giving relief to the salaried class in the old regime would have been a welcome move. The reduction of TDS applicable (under section 94H) on agent earnings from earlier 5% to 2% is also a positive move to boost agents’ earnings.”
“The Finance Minister’s announcement to strengthen the Insolvency and Bankruptcy Code (IBC) and enhance tribunal efficiency is a crucial step for India’s financial sector. These reforms, along with the integration of digital public infrastructure, will boost creditor confidence and ensure timely insolvency resolutions.
At LegalPay, we support these initiatives, which align with our commitment to providing innovative legal and financial solutions that drive market growth and resilience.” -*Kundan Shahi, CEO, LegalPay.
Education and skilling sectors
Abhishek KG, Co-founder, Clapingo:
“We are pleased to see a strong emphasis on job creation and upskilling in the Union Budget 2024. The significant allocation of INR 1.48 lakh crore towards education, skilling, and employment aligns perfectly with our mission to empower young professionals and students with English speaking skills across the country. More and more investors will be encouraged to invest in young startups, and entrepreneurs will have a confidence boost to start their own ventures, with the proposal to abolish angel tax. As a player in the language learning industry, we are thrilled to support the skilling journey through English language training, providing individuals with the opportunity to succeed both in India and globally.”
Here is the Post-budget reaction regarding the Education and skilling sectors. Here is the quote from Manav Subodh- Founder of 1M1B ( One Million for One Billion) – an AI-focused skilling organization
“The Union Budget 2024 reflects a forward-thinking approach towards bolstering India’s education sector, particularly through significant financial support for higher education and skill development. In particular, I am glad to see the groundbreaking policy that allows companies to claim 10% of their training costs under Corporate Social Responsibility (CSR). This initiative directly addresses one of the most significant challenges in our education system: the lack of work experience and internships for students.
The current gap between academic learning and industry requirements has left many students, particularly those from marginalized and tier-2 cities, without adequate job opportunities. By providing financial relief for training costs, the government is incentivizing companies to invest in training and job support for these students. This policy not only encourages companies to hire fresh talent from diverse backgrounds but also democratizes on-the-job training.
HR managers, who often shy away from on-the-job training due to high costs, now have a compelling reason to bring in freshers and invest in their development. The immediate relief from CSR claims makes this investment viable. This policy will ultimately lead to a more flexible job market, removing barriers to entry and creating a larger, future-ready workforce that benefits both businesses and the economy.” – Manav Subodh- Founder of 1M1B ( One Million for One Billion) – an AI-focused skilling organization
Ankur Goel, CEO & Founder of Skillible:
The recent budget announcement by Finance Minister Nirmala Sitharaman has set a strong precedent for the future of education and skill development in India. Skillible commends the introduction of E-vouchers for 1 lakh students, facilitating a 3% interest subvention on loans, and the ambitious plan to upgrade 1,000 industrial training institutes. The revised Model Skilling Loan Scheme, projected to benefit 25,000 students annually, and the new centrally sponsored scheme under the PM package for skilling, aiming to skill 20 lakh youth over five years, are transformative steps.
The three newly announced ‘Employment Linked Incentive’ schemes—First Timers, Job Creation in Manufacturing, and Support to Employers—will undoubtedly drive employment and boost the manufacturing sector. Providing skilling loans of up to ₹7.5 lakh will further ease financial barriers for students, ensuring they have access to quality training and employment opportunities. These initiatives reflect a significant commitment to building a skilled workforce, and Skillible is excited to support and align with these goals, empowering India’s youth for a brighter future.
Dr. Ravinder Goyal, Co-founder of Erekrut:
The Union Budget 2024 marks a significant stride towards bolstering employment and skill development across India The employment-linked skilling schemes and job creation incentives, especially the direct benefit transfer for first-time employees, are transformative. These measures will support young job seekers and enhance their career prospects.
The substantial investment of ₹1.48 lakh crore in education, employment, and skill development reflects a strong commitment to building a skilled workforce. The PM’s package, including schemes for job creation in manufacturing and support to employers, will significantly boost job opportunities and economic growth. Under the leadership of the Finance Minister and the Prime Minister, India is poised for a more prosperous and skilled future.
Suchita Vishnoi, Co-Founder & CMO, GatewAI:
The recent budget announcement marks a transformative step towards empowering women and enhancing their role in India’s economic landscape. GatewAI commends the government’s commitment to advancing women through substantial initiatives such as the provision of ₹30 crore in Mudra Yojana loans, aimed at fostering entrepreneurship and providing financial support to women entrepreneurs. This move will significantly ease the path for women to start and scale their own businesses. Moreover, the focus on STEM education, with girls and women constituting 43% of enrolments, reflects a progressive approach to bridging the gender gap in technology and innovation sectors. This investment in education not only prepares women for the future but also drives their increased participation in the workforce. Additionally, the Lakhpati Didi schemes exemplify the government’s dedication to transforming women’s economic status and promoting financial independence. These measures collectively highlight a robust strategy for empowering women, fostering entrepreneurship, and creating a more inclusive economic environment.
“Happy with the government’s proactive approach in significantly increasing budget allocations for education, employment, and skilling, amounting to Rs 1.48 lakh crores. This commitment underscores a strong resolve to cultivate a highly skilled workforce that meets the dynamic demands of the tech industry. The emphasis on digital skills is especially promising, aligning perfectly with Nuvepro’s mission to empower individuals with essential capabilities for the digital economy of tomorrow.
The introduction of a collaborative skilling scheme with state governments and industries marks a pivotal step towards bridging the gap between academia and industry needs. The upgrade of 1000 ITIs and the alignment of course content with industry standards will undoubtedly enhance youth employability and foster a culture of entrepreneurship. These initiatives are poised to create a substantial impact by upskilling our workforce and driving innovation-led growth across sectors.
As an organization committed to enhancing employability through targeted upskilling initiatives, we eagerly anticipate contributing to these efforts. The government’s announcement of a comprehensive scheme to provide internship opportunities in top 500 companies to one crore youths over five years is a commendable initiative. This will not only provide practical exposure but also enhance the employability quotient of our youth, preparing them for competitive roles in the global economy. As an organisation dedicated to enhancing employability through targeted upskilling programs, we look forward to contributing to this national effort and supporting the government’s vision for a digitally empowered and economically vibrant India.”
Giridhar L.V. CEO, Nuvepro, Technologies.
Healthcare
Mr. Priyadarshi Mohapatra, Founder & CEO, CureBay
We appreciate the government’s focus on broadening access to healthcare. CureBay is committed to making healthcare accessible in Tier-2 & Tier 3 cities, and the development of DPI applications for health at a population scale aligns perfectly with our mission. The proposed exemptions for cancer treatment medicines and the changes in customs duty for X-ray tubes and flat panel detectors under the phased manufacturing program are significant steps towards improving healthcare quality and accessibility. These initiatives will drive innovation, enhance healthcare infrastructure, and ensure that advanced medical services reach underserved regions. This budget represents a major stride towards a healthier, more equitable India.
Dr Chandril Chugh, Senior Consultant Neurologist And Director Of Good Deed Clinic said “The 2024-25 Indian budget shows a strong commitment to healthcare by introducing important customs duty exemptions for cancer medicines and reducing duties on key medical devices like X-ray tubes. These changes aim to make treatments more accessible and affordable. However, the ongoing issue of high out-of-pocket expenses, despite a drop from 64.2% in 2014 to 48.2% in 2019, remains a significant problem. This financial burden highlights the need for more public investment in healthcare. The budget’s increases in funding for primary healthcare projects like PM ABHIM and PMSSY are positive. Still, the small rise in the National Health Mission’s budget suggests that more investment is needed to close existing gaps. Overall, while the budget’s measures are encouraging, more improvements in public health funding and infrastructure are essential for fair and effective healthcare access.”
Dr. Dharmesh Shah, Founder and Director of Holistica World:
The allocation of Rs 90,658.63 crore to the Union Health Ministry in the Budget for
2024-2025, marking a significant 12.59% increase from the previous year, reflects a
commendable commitment to advancing the nation’s healthcare system.
This year’s Budget introduces several impactful measures. The expansion of digital
infrastructure is a crucial step forward, enhancing the efficiency and accessibility of
healthcare services across the country. The establishment of new medical colleges, is
set to increase the number of trained medical professionals, addressing critical
shortages and improving healthcare delivery in underserved areas. Furthermore, the
relief measures for cancer patients, including the exemption of certain medicines
from customs duties, are expected to alleviate financial burdens and improve patient
outcomes.
In addition to these initiatives, the Budget's focus on modernizing medical device
production and supporting primary health care through various schemes
demonstrates a comprehensive approach to strengthening the healthcare system.
These achievements reflect a positive direction in addressing the country's healthcare
needs and improving overall public health infrastructure. The ongoing support and
implementation of these measures will be crucial in realizing the full potential of this
enhanced budget allocation,
However, while these steps are promising, there are areas where additional focus
could further benefit the sector. For instance, increasing healthcare expenditure to
2.5% of GDP would provide more substantial support for comprehensive healthcare
development. Additionally, greater emphasis on research and development,
alongside optimized tax incentives and GST rates, could drive further innovation and
efficiency in the sector.
Mr. Surjeet Thakur, Founder & CEO of TrioTree Technologies:
The Union Budget 2024-25 demonstrates a strong commitment to technological
advancement and healthcare innovation. The substantial increase in fiscal
allocation for health tech and the strategic focus on skilling 20 lakh youth over the
next five years will significantly impact our industry. As a health tech company,
TrioTree Technologies welcomes the simplification of capital gains taxation and the
abolition of the Angel Tax, which will foster a more conducive environment for
startups and innovation. The increased investment in digital health infrastructure
and the proposed measures to support research and development in healthcare are
promising steps towards building a robust digital health ecosystem.
While the current initiatives are commendable, there are further opportunities to
amplify their impact. For instance, increasing investment in health IT
infrastructure by an additional 10% could enhance the integration and efficiency of
digital health systems. Expanding funding for telemedicine and remote monitoring
technologies could significantly improve access to care, especially in rural areas,
potentially reaching millions more patients. Additionally, investing in
cybersecurity measures to protect patient data and streamlining health IT
regulations could further drive innovation and ensure safer, more effective
healthcare delivery.
Mr. Raj Singhal, Co-founder & CEO of Footprints Childcare
I am pleased with the Union Budget 2024’s revisions to tax slabs and the increased standard deduction. These give parents more disposable income to invest in their children’s early education, a critical developmental stage. This financial relief will support access to quality preschools, enhancing overall development and future success.
Furthermore, the reengineered skill loan scheme with loans up to INR 7.5 lakh, supported by a government-promoted fund guarantee, ensures 25,000 students annually access a dynamic workforce. Additionally, the comprehensive education loan scheme of up to INR 10 lakh for higher studies, with an annual interest subvention of 3% through e-vouchers, benefits one lakh students. Together, these measures create a robust foundation for educational growth from early childhood through higher education.
Ecommrece
Siva Balakrishnan, founder and CEO of Vserve:
“The Union Budget presented by Finance Minister Nirmala Sitharaman is a progressive step towards bolstering the digital economy and fostering growth across various sectors. The reduction of TDS for e-commerce operators from 1% to 0.1% is a welcome move that will significantly ease cash flow for businesses, encouraging more participation in the e-commerce space. The proposal to develop DPI applications at a population scale in credit, e-commerce, law and justice, and corporate governance demonstrates a forward-thinking approach to leveraging technology for inclusive growth. While the taxation on unlisted bonds, debentures, debt mutual funds, and market-linked debentures at slab rates may pose some challenges, the overall focus on digital infrastructure and ease of doing business provides a solid foundation for future growth. This budget reflects a balanced approach to fostering innovation and ensuring regulatory compliance.”
Mr. Sampad Swain, Co-founder and CEO, Instamojo:
“The Ministry of Finance has unveiled a forward-looking and optimistic Union Budget 2024 designed to advance the digital economy and support the MSME sector. With ‘inclusive development’ as one of its nine pillars, this budget lays a strong foundation for accelerated financial inclusion and the expansion of the credit ecosystem. The focus on providing funding through banks to MSMEs is a commendable initiative, ensuring ongoing support for a sector that contributes over 30% to India’s GDP and serves as a vital engine for economic growth, job creation, and livelihood support. Additionally, the establishment of e-commerce export hubs for MSMEs and small artisans to sell their products internationally will significantly enhance productivity and empower the country as a whole.”
“The budget’s emphasis on local kirana shops and MSMEs shows the government’s commitment to revitalizing this sector. Introducing a credit guarantee scheme and raising the Mudra loan limit to 20 Lakhs for previous borrowers will facilitate finance access. By prompting banks to consider digital footprints for eligibility and implementing the MSME guarantee plan and internal assessment models, credit access for kirana shops is simplified. The collateral-free credit guarantee scheme and support for MSMEs in financial distress are crucial. Establishing export hubs and providing technological support will enhance global competitiveness and innovation for local kirana shops.” – Mr. Amit Bansal, CEO, Solv.
Vaibhav Kaushik, Co – founder & CEO, Nawgati.
I am elated by the government’s decision to abolish the angel tax for all classes of investors. It is what we, and the whole startup community, were looking forward to. This move will now give the Indian startup ecosystem the needed boost, allowing us to attract international funding and expand our reach beyond national borders. The establishment of a ₹1 lakh crore financing pool for private sector-driven research and innovation is a commendable step, aligning with every startup’s vision for commercial-scale advancements. Additionally, the comprehensive plan to strengthen India’s energy security with new policies and initiatives is a promising development for our industry. These steps along with other targeted incentives specifically for startups can play a crucial role in bolstering and sustaining our momentum and driving further innovation in the Indian startup ecosystem.
Soumya Sarkar, C0-Founder, Wealth Redefine (AMFI registered MFD):
We appreciate the government’s commitment to fiscal consolidation with a fiscal deficit target of 4.9% of GDP. The increased allocation for infrastructure and rural development, coupled with employment and skilling initiatives, will drive economic growth and create new opportunities. The abolition of the Angel Tax for startups is a significant boost for the entrepreneurial ecosystem. At Wealth Redefine, we believe these measures will positively impact the investment climate.
However, the proposed tax hike on short-term and long-term capital gains may adversely affect the market. While the simplification of capital gains taxation is a positive step, the higher tax rates could dampen investor sentiment.
Nemesisa Ujjain, VP & Head of The Circle FC:
The Union Budget 2024-25 has focused on a robust foundation for economic growth, investments and capital formation. The increased allocation for skilling and employment, along with the abolition of the Angel Tax, is a significant step towards supporting the startups and innovation ecosystem.
The enhanced tax deductions, increase in Mudra loan limit and concessions for MSMEs will boost entrepreneurial growth, creating a favorable environment. Higher FDI is expected with a reduction in tax on Foreign Companies from 40 to 35%.
Vijay Navaluri, Co-founder & Chief Customer Officer, Supervity.
The 2024-25 Union Budget places a strong emphasis on technology and innovation, which is crucial for the growth of the AI and tech sectors. The abolition of the Angel Tax for investors is a significant move that will bolster the startup ecosystem, encouraging more investments and fostering innovation. It will significantly improve startup funding sentiment while boosting morale of deep tech and AI startups to take bigger bets. The focus on skilling and employment are steps in the right direction, creating a conducive environment for tech companies to thrive. The allocation of funds for research and development, particularly in the space economy and renewable energy, indicates the government’s commitment to supporting cutting-edge technologies. Supervity AI is excited about these developments and looks forward to contributing to India’s journey towards becoming a global tech leader.
Deeptech
Mr. Sunil Shekhawat, CEO of SanchiConnect.
The Union Budget brings hope for DeepTech start-ups through increased funding for R&D and innovation, which is crucial for those with disruptive ideas and longer fundraising cycles. With entrepreneurial experience since 2012, I recognise the challenges DeepTech start-ups encounter. The budget’s strategy of combining financing, regulation, and skilling into one comprehensive approach is a masterstroke.
Central to this approach is the ₹1,000 crore Venture Capital fund for the space economy, which will significantly boost India’s spacetech sector. Additionally, the abolition of the angel tax for all investors is set to attract more funding, thereby easing financial burdens on investors. Furthermore, the emphasis on skilling under CSR, particularly through internships, is a brilliant move that benefits both students and corporates. The 2024 budget exemplifies India’s forward-thinking approach, creating a supportive environment for start-ups, driving innovation, and equipping the workforce with essential skills.
Web3/Blockchain
Dilip Chenoy, Chairperson, Bharat Web3 Association:
The nine focus areas of budget 2024 are key steps towards our goal of Viksit Bharat. The budget also lays out a clear framework for digitisation of various sectors , where Web3 technology could play a critical role.
We were hoping for some relaxation to the taxation framework on VDAs in this budget, but the absence of any announcement is not particularly disheartening, given the Govt’s overall negative stance towards the sector. We have submitted data-backed quantitative analyses regarding the flight of users’ trading and transactions, as well as the potential increase in government revenue should the taxation structure be revised.
We will continue to push for rationalization of the taxation framework, which includes reducing the TDS to 0.01%, allowing setoff of losses on VDA transactions and modifying the 30% tax on capital gains. We are hopeful that the government will consider our requests and that we will see changes in the future.
On the positive, abolishing the angel tax for all classes of investors will work towards bolstering the Indian startup ecosystem. We look forward to more Web3 startups setting base in India, given India’s immense Web3 talent and potential.
Finally, the impetus provided to blockchain skilling and talent development in the Economic Survey can empower youth for the exciting opportunities in Web3 and contribute to a skilled ecosystem for Web3 adoption.
Mobility
Mr.Tushar Choudhary, Founder & CEO, Motovolt Mobility:
“We commend the Union Budget 2024-25 for its announcement to fully exempt customs duties on 25 critical minerals, including lithium, essential for EV battery manufacturing. This move is expected to significantly reduce battery costs and bolster domestic manufacturing capabilities. Furthermore, the incentives for hiring first-time employees are a welcome initiative that will stimulate job creation in the manufacturing sector. This initiative will not only help build a skilled workforce but also support our expansion plans by ensuring we have the talent needed to drive innovation and productivity. The ‘Purvodaya’ plan is another robust initiative that underscores the government’s commitment to fostering growth and innovation across the eastern states. By reducing import costs and encouraging regional development, this plan represents a significant step forward for our industry and the economy as a whole. Additionally, our products in the micro-mobility segment will benefit greatly from these measures, enabling us to offer more affordable and efficient solutions to consumers. This will particularly enhance our ability to cater to the urban and semi-urban markets, providing sustainable and cost-effective transportation options. Overall, these measures reflect a forward-thinking approach that will benefit the entire EV ecosystem, from manufacturers to consumers, and contribute to sustainable economic growth. By addressing critical supply chain issues and promoting regional development, the government is laying a strong foundation for the future of electric mobility in India. We are optimistic that these initiatives will drive significant advancements in technology and infrastructure, ultimately leading to a cleaner, greener, and more prosperous nation.”
Aloke Bajpai, Chairman, Managing Director & Group CEO, Ixigo:
“The government’s policy initiatives to enhance spiritual tourism are a welcome move towards growing domestic tourism as well as making India a global travel destination. We saw a 40-50% increase in demand for spiritual tourism last year, for destinations like Varanasi, Ayodhya, and Tirupati. The government’s PRASAD Scheme has led to a remarkable transformation in Varanasi’s tourism sector, attracting an unprecedented 100 million visitors to Kashi Vishwanath Dham after the corridor project completion.
We expect a similar boost in tourism to Bihar and Odisha with spiritual tourism corridors coming up for Vishnupad Temple and Mahabodhi Temple at Bodh Gaya, along with comprehensive initiatives for Rajgir, Nalanda, and Odisha. We expect this to benefit our large next billion user (NBU) base which predominantly relies on buses and trains to access these spiritual towns, and where our market share continues to improve across modes of transport.”