Post-Budget 2024 Founders’ Reactions: Insightful Perspectives on India’s Fiscal Roadmap

• ByStartupStory     |    February 1, 2024

Finance Minister Nirmala Sitharaman presented the Interim Budget 2024-2025 on February 1, outlining the government’s focus on welfare across four major classes: youth, women, poor, and farmers. The budget aims to continue the momentum of the past decade’s achievements while addressing critical aspects of economic growth. Notably, PM Mudra Yojana has sanctioned 43 crore loans totaling Rs 22.5 lakh crore, fostering entrepreneurial aspirations among the youth. The budget also includes crucial extensions for tax incentives and exemptions for startups, signaling sustained support for the entrepreneurial ecosystem.

Here’s what prominent founders had to say about the budget:

Anil Bakshi, Founder and CEO, Startup Story: “The widespread distribution of the fruits of development is a testament to the government’s unwavering commitment not only to economic growth but also to ensuring that its advantages are experienced by a broad cross-section of the population. Under the visionary leadership of PM Modi, this newfound sense of purpose marks a pivotal shift in the trajectory of the nation, symbolizing an era where inclusive benefits are at the forefront of the government’s agenda.”

Sabyasachi Goswami, CEO, Perfios:

“We are delighted to witness the government’s focus and commitment to fostering the startup ecosystem in the Interim Budget 2024. This pivotal attention comes at a crucial time when the industry grapples with a funding winter, compounded by challenges such as the geopolitical crises and global slowdown. The announcement of a substantial corpus of Rs 1 lakh crore, featuring 50-year interest-free loans for Startups & MSMEs, is a commendable move that will undoubtedly provide the private sector with long-term financing opportunities at low or nil interest rates. This initiative aligns seamlessly with our vision to foster innovation and scale up research in sunrise sectors.

The extension of tax benefits for startups until March 31, 2025, further reinforces the government’s commitment to nurturing the entrepreneurial spirit. This gesture not only provides financial relief but also instills confidence in the startup ecosystem.

We also express our appreciation for the government’s proactive approach in incentivizing digital transactions in the previous year. Anticipating a continuation of such initiatives for the broader financial ecosystem this year, we look forward to a collaborative effort that will drive digital transformation for Banks and NBFCs, which will also result in financial inclusion. These measures collectively pave the way for a robust and resilient startup landscape, and we at Perfios are optimistic about the positive impact they will have on the industry as a whole.”

Mr. Karthik Jayaraman, Managing Director of WayCool Foods: “The continuity of policy in supporting food and agriculture sectors is encouraging. The new proposals of PPP Projects in post-harvest management and value addition will help unlock entrepreneurship and value in the supply chain. In addition, entrepreneurs and startups are keenly looking forward to understanding the details of the proposed soft loans for R&D programs. This will help in creating explosive growth by driving innovation, and expedite reforms in sectors of national importance like food and agriculture.”

Kamal Bansal, Managing Director, GVFL: “The Finance Minister has rightly described innovation as the foundation of development and showcased its commitment to fulfilling the aspirations of the youth. The announcement to establish a corpus of Rs. 1 lakh crore to provide financing with long tenors and low or nil interest rates will encourage the private sector to scale up research and innovation in sunrise domains. This augurs well for startups and young innovators. The announcement to extend tax benefits to startups and investments by sovereign wealth or pension funds by a year will provide continuity in taxation.”

Anand Sri Ganesh, CEO, NSRCEL IIM Bangalore: “As we navigate the post-budget landscape, we are thrilled to witness the remarkable strides in the empowerment of women through entrepreneurship. The encouraging surge of 28% in female enrollment in higher education over the past decade serves as a demonstration of the growing role of women in shaping India’s entrepreneurial landscape. At NSRCEL, we recognize the pivotal role women play in fostering innovation and driving economic growth as one of the top incubators in the country which has incubated a record number of women entrepreneurs in various business segments. We are excited about government support for green growth for the ventures in EV infrastructure and climate tech entrepreneurs too.

We are enthusiastic about the transformative impact our initiatives will have on empowering women entrepreneurs and fostering the growth of MSMEs. We believe that by providing appropriate training and support, we can catalyze a new wave of success stories that will not only shape the business landscape but also contribute significantly to the economic empowerment of women across the nation. As we embark on this journey, we would like to collaborate and partner with like-minded entities who share our vision for a more inclusive and dynamic entrepreneurial ecosystem. We believe in harnessing the momentum of empowerment and innovation to propel India’s startup ecosystem to new heights.”

Dr Rahul Amritraj, Head of Incubation – Centre for Medical Innovation, Government Institute of Medical Sciences .GIMS Gr. Noida, “Effective government health programs are the cornerstone of a thriving society, where every individual has access to the care they need for a productive and fulfilling life.”

Siba Panda, Founder and Managing Partner, ValuAble: “It was a promising interim budget! Honourable Finance Minister has provided a balanced outlook towards growth and promoting sustainability. The invaluable focus on “Garib, Mahilayen, Yuva and Annadata” is a testimony to the government’s focus on protecting, uplifting, and promoting at the grassroots. Prima facie the tax rates have remained constant but the initiative to support tech-led youth and startup economy is remarkable. The PM Mudra Yojana that has sanctioned as many as 43 crore loans amounting to a whopping Rs. 22.5 lakh crore will build consensus with the ideology that is at the core of Viksit Bharat @2047. Although this budget has only earmarked major fund allocations, it is sure to boost confidence in the market and the market’s trust in the economy.”

Varun Kalsi, Global Head of Business & Family Solutions, Lighthouse Canton: “The FM’s budget reiterates the GoI’s unwavering commitment towards promoting the Gujarat International Finance Tec-City as the first choice for Indians considering exposure to global public and private markets. There is no doubt that the IFSCA is doing its best to iron out all creases and remove any obstacles that stand in the way of this avowed objective. In fact, IFSCA has very quickly earned the reputation of being an extremely proactive and patient regulator. Indeed, this is a feather in the regulator and the GoI’s caps.”

Ankit Agrawal, CEO and Co-Founder, InsuranceDekho: The government’s commitment to a “Viksit Bharat” and the vision for a prosperous India by 2047, reflects a broader vision for fostering prosperity and inclusivity in India. The budget has provided a significant boost to the agricultural sector and focussed on cultivating a thriving environment for the startup ecosystem. The crop insurance will offer farmers direct financial assistance, fostering awareness and growth in rural India. The emphasis on offering adequate financial help to MSMEs will pave the way for small enterprises to grow, generate employment, and compete globally. The interim budget further supercharges entrepreneurship, granting 43 crore loans worth INR 22.5 lakh crore through initiatives like Fund of Funds, Startup India, and Startup Credit Guarantee Schemes.”

Tanul Mishra, Founder, Afthonia Labs: “The extention on certain benefits provided to the startups till for a year more till December 31st 2025 is a big plus. Emphasis was made on new age technology and the allocation of Rs 1 lakh crore coupled with low to no interest rate loan provision for tech savvy research and innovation. This will provide importance to entrepreneurship. PM Mudra Yojana has sanctioned 43 crore loans aggregating to approximately Rs 225 lakh crore for entrepreneurs in India. Schemes such as fund of funds, Start up India, Start up credit guarantee schemes are assisting startup founders in many ways. We are welcoming of these initiatives as they have a great potential to nurture and pave our way to innovation and contribute to the ever changing dynamic nature of the startup landscape. We see these advancements have the potential to change the country’s economic and growth trajectory.”

Bhavik Vasa, Co-founder, GetVantage: “The interim budget looks promising for the startup ecosystem and new-age lenders focused on bridging the vast credit deficit for SMEs and MSMEs . The government’s bold step in establishing a 1 lakh crore corpus for emerging sectors is a beacon of optimism for the growth trajectory of early-stage startups. This year, we anticipate a significant boost for Cleantech and Agritech startups, propelled by an augmented allocation that surpasses the benchmarks set in the previous year.
The increased focus on funding Solar Grids and the National Green Hydrogen Mission underscores the government’s unwavering commitment to also advancing climate tech companies. This not only signifies robust financial support but is also an acknowledgment of the pivotal role startups in these sectors will play in steering us towards a more sustainable future. The anticipation of a surge in climatetech and cleantech startups in the upcoming years creates a ripe landscape for cash flow-based financing models, presenting a greenfield opportunity for alternate-financing companies including fintechs and NBFCs.
Moreover, the spotlight on reforms for MSMEs is a commendable stride toward fostering inclusive and sustainable development. These initiatives not only strengthen the roots of our homegrown businesses but also fortify their global competitiveness, aligning with the vision of making India a Viksit Bharat by 2047.
In essence, the interim budget heralds a discernible upswing in the startup ecosystem. We are optimistic that startups, armed with these transformative reforms and policies, will leverage them strategically to scale new heights on their growth journey.”

Kresha Gupta, Founder, Chanakya Opportunities Fund: “In an announcement that delivered on subdued expectations, India’s FY 2024 Interim Budget unfolded with no major surprises, reflecting a pragmatic approach to fiscal policies. The absence of significant market fluctuations indicated that the budget did not introduce radical economic shifts. Instead, its core objective is portraying India’s developmental journey, highlighting strides made, and elucidating a roadmap for continued progress. By doing so, the government aimed to remain confident both domestically and internationally in India’s economic trajectory. A notable emphasis in this fiscal plan was the commitment to social welfare, with a targeted focus on poverty alleviation, women’s empowerment, and the agricultural sector. The budget’s spotlight on the underprivileged underscored the government’s determination to bridge socio-economic gaps and foster inclusivity. In essence, India’s FY 2024 Interim Budget, while lacking in surprise elements, stands as a testament to a government focused on incremental progress and social welfare.”

Giridhar L V, CEO and Co-founder, Nuvepro Technologies: “It’s great to see the focus of the Government in setting up the infrastructure required for Skilling the youth and imparting quality education. However, what is still unaddressed is providing a path for the youth to Jobs. One of the best ways is by Internships. Organizations need to be incentivized to provide Internships, and it has to be made mandatory for every student to have at least 6 months of internship before they graduate.”

Vinayak Shete, Manager Solution Design, Addverb technologies: “The confidence of the BJP government is evident in the consistent tax slabs, signaling a reliance on performance rather than using tax benefits to sway middle and lower-class voters.”

Mr. Domnic Romell, President of CREDAI-MCHI, extended congratulations to the Hon’ble Finance Minister, Ms. Nirmala Sitharaman, for her sixth consecutive budget and redefining GDP as Governance, Development, and Performance. Mr. Romell said, “the government has taken ‘Citizen First’ approach, focusing on Reform, Perform, and Transform. It’s a balanced budget that is pro development and performance oriented. We praise the steps taken to empower the marginalized, including the poor, women, youth, and farmers, foreseeing a positive impact on the economy.
The vision of ‘Housing for all’ gains momentum with the announcement of a new housing scheme for the middle class and plans to build 2 crore houses in the next 5 years under the rural housing plan. Initiatives like rooftop solarisation are expected to reduce electricity bills, encouraging middle-class investment in affordable housing. In the spirit of the year of Nari Shakti, schemes like Lakhpati Didis are motivating women Self Help Groups (SHGs). CREDAI-MCHI proposes an increase in tax exemption in interest payments for housing loan in case of women home buyers to further empower women, making homeownership affordable and accessible to larger section of women home buyers making it a reality.

FM’s decision to maintain existing tax rates will boost taxpayer confidence. The budget’s impetus on the infrastructure sector, especially railways and aviation will propel the country to greater heights.
We welcome the additions to metro and Bharat rails, the transformation of boggies to Vande Bharat, and the development of 149 new airports as measures that would open up new areas for development which in turn would further stimulate the economy.
We acknowledge the concentrated efforts resulting in significant improvements in tax collection, coupled with the positive impact of Jan Dhan accounts on savings.”

 Anand Nagarajan, Co-Founder & CEO, Shaka Harry: The Budget 2024 marks a positive stride in entrepreneurship. While echoing ‘Jai Jawan, Jai Kisan, Jai Vigyan, Jai Anusandhan’ the Finance Minister highlighted that new technologies and innovations are helping businesses to grow. The extension of startup benefits, support for IFSC units, and substantial PM Mudra Yojana loans reflect a commitment to economic growth. Government resilience since 2014, coupled with reforms and pro-people initiatives, lays the foundation for widespread development. The emphasis on women’s entrepreneurship signifies a commendable shift towards inclusivity and empowerment, aligning with the government’s dedication to fostering an empowered and inclusive society.”

 Megha Sharma, Co- Founder & CEO Panacea Healmed: “The government’s unwavering commitment towards inclusive economic growth is exemplified by the widespread distribution of progress. This strategic shift, spearheaded by Prime Minister Modi’s visionary leadership, prioritizes ensuring that a broad segment of the population benefits from the nation’s advancement. A landmark initiative in this regard is the Finance Minister’s allocation of 30 crore MUDRA Yojana loans to female entrepreneurs. This not only fosters a vibrant startup ecosystem but also empowers women as key economic drivers, undoubtedly propelling India’s economic trajectory to new heights.
The budget further underscores this commitment by highlighting the significant strides made in women’s empowerment over the past decade. Such progress has been achieved through targeted initiatives promoting entrepreneurship, enhancing ease of living, and fostering individual dignity.”

The budget has set a tone for continued support for startups, with an emphasis on leveraging technology and innovation to drive economic growth. Founders and industry experts are optimistic about the transformative reforms and policies, foreseeing a positive impact on India’s startup landscape in the coming years.

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