“The Union Budget 2024 is a significant step forward for the mobility, transit, and startup sectors. I am particularly excited about the investments in rural and urban infrastructure, which will enhance connectivity and reduce congestion. The PM Surya Ghar Muft Bijli Yojana will lower EV charging costs, promoting sustainable mobility. The abolition of angel tax is a major win for startups, encouraging investment and innovation. Additionally, the increased allocation for MSMEs and focus on technology support will foster a more robust startup ecosystem. However, increased taxes on certain financial instruments might challenge us. Overall, the budget supports sustainable growth and innovation, setting a positive trajectory for India’s future.”
Hiranmay Mallick, CEO, Tummoc – Public Transit App
“Digital Public Infrastructure (DPI) is crucial for the future of our nation, and we are pleased to see the government taking significant steps in this direction. By integrating AI with DPI, the government will efficiently serve the bottom of the pyramid, ensuring that every citizen is reached in their native language. This initiative marks a transformative era in public service delivery, bringing inclusivity and accessibility to the forefront. We are proud to support this journey of building a new India, Nava Bharat Nirman Yatra, as it paves the way for a more connected and equitable society.”
Kesava Reddy, Chief Revenue Officer, E2E Networks Ltd
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.
Vijay Navaluri, Co-founder & Chief Customer Officer, Supervity.
Assessing Fair market value for startups has always been complex and challenging. Abolition of angel tax comes both as a long awaited relief and a shot in the arm to the Indian startup ecosystem. The move will encourage flow of foreign capital, reduce tax harassment and foster a more conducive environment for entrepreneurship
Adith Podhar, Founder of Gemba Capital.
The elimination of the angel tax is a significant relief for startups. Beyond the potential constraints on cash flow, the angel tax created numerous challenges during fundraising efforts, which worsened last year when even foreign investments became subject to this tax. The differing regulatory requirements, such as the RBI’s pricing guidelines mandating the per-share price to be above fair market value (FMV) and the tax authorities imposing angel tax on any discrepancy between the share price and FMV, resulted in several complications for startups
Anisha Patnaik, Angel Investors and Founder of LexStart Partners.
The elimination of the angel tax will significantly benefit small and medium enterprises (SMEs), emerging brands, startups, and our GetVantage portfolio brands. This decision is expected to attract more investment and create a more favorable environment for innovation and growth in these sectors. Startups will no longer be viewed as an alternative asset class for investments but rather as a mainstream opportunity for every retail investor to participate in and gain high-yield returns by being a part of this growing sector. This change will attract all forms of capital and financing (including equity and quasi-equity) to the segment.”
Bhavik Vasa, Cofounder of GetVantage
The allocation of ₹1.52 lakh crore for agriculture and allied sectors by the Finance Minister underscores a pivotal commitment to bolstering India’s agricultural resilience. The emphasis on developing climate-resistant varieties and introducing 109 new high-yielding varieties is a forward-looking stride towards sustainable agriculture. Additionally, the promotion of farmer producer organizations, cooperatives, and startups heralds a new era of inclusive growth and innovation in the agricultural sector.
Exempting lithium imports from customs is a bold step demonstrating India’s commitment to strengthening the drone manufacturing sector. Lithium, crucial for drone battery production, will now bolster domestic drone manufacturing, underlining the government’s support for this industry.
The abolition of the Angel Tax for investor classes is a significant boost for startups, affirming the government’s unwavering support for entrepreneurship and fostering a conducive investment environment.
However, we look forward to enhanced subsidies on agricultural machinery, including drones, as a critical step towards modernizing our farming practices.
Prem Kumar Vislawath – CEO and Founder, Marut Drones
The abolition of angel tax in India stands to significantly benefit startups by eliminating a major financial burden associated with raising capital from investors. This reform will create a more favorable investment climate, encouraging both domestic and foreign investments, and facilitating easier access to funding. By alleviating concerns over tax liabilities, startups can focus more on innovation and growth rather than compliance issues. Additionally, the removal of angel tax will support the retention of talent and promote the establishment of world-class companies within the country, ultimately strengthening the overall startup ecosystem in India.
Impact : — By eliminating this tax burden, startups can retain more of the capital they raise, allowing them to allocate resources more effectively toward growth and innovation. This change not only enhances the attractiveness of investing in Indian startups but also fosters a more vibrant and dynamic entrepreneurial environment. Furthermore, the removal of angel tax encourages startups to remain in India, promoting a stronger local market and increasing the likelihood of successful exits. Overall, this reform signals a commitment to nurturing the startup landscape, making it a more appealing destination for both domestic and international investors.
View on money laundering due to which it was introduced
The introduction of angel tax in India in 2012 was primarily aimed at curbing money laundering and preventing the inflow of unaccounted money through investments in startups. The tax specifically targeted the premium paid by investors above the fair market value of shares issued by unlisted companies, classifying this excess as taxable income. This measure was intended to combat the misuse of inflated valuations often associated with shell companies and bogus startups, which were exploiting loopholes to launder money. However, the implementation of angel tax has faced criticism for stifling innovation and growth in the startup ecosystem, as many startups found it challenging to justify their valuations, leading to significant tax liabilities that could deter investment. The recent decision to abolish angel tax aims to alleviate these concerns, fostering a more supportive environment for startups and their investors while still addressing the original intent of preventing financial malfeasance.
Manas Pal, Co-Founder, PedalStart.
The government’s announcement of a ₹1,000 crore VC fund to boost the space economy and a ₹1 lakh crore R&D fund is a strong testament to the recognition that the space economy will be at the forefront of India’s ascent in the deep tech economy. This initiative underscores the success of ventures like Agnikul and provides significant momentum to their ambitious plans to launch a rocket a week and dominate the global nanosatellite delivery market. We are supremely excited to learn more about the finer details of this massive boost to the sector”.
Anirudh A Damani -Managing Partner – Artha Venture Fund
The 1000 Cr fund of funds for space tech is testimonial to India’s capability in coming up with breakthrough solutions at low cost. This will certainly help space tech companies to look for much needed early stage capital to get started. This will certainly help mobilise over Rs 4000 Cr, great move. Angel Tax abolishment was long pending, glad that Hon. FM has heard industry voices and has finally abolished it. This will certainly help in expansion of angel investment in India and will take away a lot of burden from the minds of everyone on tax notice for tax paid investment. This will also free up a lot of domestic capital and improve the funding sentiment in a strong way.
Anil Joshi, Managing Partner, Unicorn India Ventures
The Union Budget 2024 has delivered a landmark decision for India’s startup ecosystem. The abolition of angel tax for all investor classes is a game-changing move that signals the government’s unwavering commitment to nurturing our nation’s innovative spirit. This pivotal reform will inject much-needed momentum into our startup landscape, which has faced headwinds recently. By removing this significant barrier to investment, the Budget 2024 is not just opening doors – it’s constructing highways for capital to flow into groundbreaking ideas.
This bold step, building upon previous initiatives like the Startup India program, positions India to regain its growth trajectory in the startup space. The Union Budget 2024 sends a clear message: India is not only open for business but is actively cultivating the next wave of entrepreneurs who will propel our economy forward.
Mr. Abhinav Jain, Co-Founder & CEO, Almonds AI
A highly forward-looking Union Budget 2024 emphasizes employment generation, urban and rural sanitation, and infrastructure development. The manufacturing sector, particularly through SMB players, has received a significant boost from this budget. The revised mining policy on rare earth metals will have a dual impact on the renewable energy sector and electronics manufacturing in the country. We extend our gratitude to the Finance Minister for further simplifying income tax and abolishing the Angel Tax.
Abhishek Sinha, Co-Founder, HealSpan.
The removal of the Angel Tax is a positive move for the startup ecosystem, as it enhances the investment landscape for emerging technologies like AI and ML. The introduction of a ₹1,000 crore venture capital fund for the space sector, along with the Anusandhan National Research Fund and a ₹1 lakh crore financing pool, underscores the government’s commitment to advancing high-impact technologies.
However, while these steps are encouraging, the startup community was hoping for additional measures that could further stimulate investments in transformative technologies such as AI and Gen AI. To fully harness these innovations, continued support beyond the India AI Mission will be crucial. We anticipate that future policies will address these needs and bolster the growth of the technology sector.
Rahul Paith, CEO, MATH
Concerning the Union Budget 2024 (July 23, 2024) during the monsoon session of the Parliament presented by our Hon’ble Finance Minister. We would like to explore the Post Budget Reaction Quote placement opportunity for Pramod Sharda, CEO of IceWarp India and the Middle East in your esteemed publication.
“The Union Budget 2024 reflects a visionary approach towards strengthening India’s position as a global leader in the IT industry. The government’s continued investment in digital infrastructure, particularly through initiatives aimed at enhancing cybersecurity and fostering innovation, is commendable. These measures will undoubtedly propel the Indian IT sector to new heights, encouraging technological advancements and creating a conducive environment for startups and established enterprises alike.
Moreover, the focus on skill development and research in emerging technologies such as AI, machine learning, and Blockchain will equip our workforce with the necessary tools to compete on a global scale. The allocation of funds for expanding internet connectivity in rural and remote areas is a significant step towards bridging the digital divide, ensuring inclusive growth and opportunities for all.
At IceWarp, we are excited about the prospects this budget brings. The emphasis on creating a robust digital ecosystem aligns perfectly with our mission to deliver comprehensive, secure, and innovative communication solutions. We look forward to leveraging these opportunities to contribute to India’s digital transformation journey and drive sustained growth in the IT sector.
Pramod Sharda, CEO of IceWarp India and Middle East.
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.
Mr. Sunil Shekhawat, CEO of SanchiConnect
This is a landmark budget for the Indian technology sector! The focus on innovation and research through the Anusandhan National Research Fund is a game-changer. It will provide much-needed support for developing homegrown solutions and accelerating our journey towards technological independence.
The government’s commitment to digitalization resonates deeply with Paxcom’s mission. We’ve seen firsthand how technology empowers businesses of all sizes. The ₹1 lakh crore pool for private sector research is a strong push for collaborative innovation, which will fuel the growth of the e-commerce sector I serve.
Overall, it is a highly encouraging budget that strengthens the foundation for a truly digital India. Paxcom is fully committed to playing its part in this exciting journey!
Punit Sindhwani ( Founder & CEO, PAXCOM)
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.
Dr. Sat Kumar Tomer ( Founder & CEO, Satyukt Analytics )
Vinay Agrrawal, Founder and CEO of Hubler, said: ‘The government’s decision to abolish the angel tax for all investor classes in the latest Union Budget will fuel innovation and growth in the Indian startup ecosystem. The MUDRA loan limit enhancement is another welcome move to encourage budding entrepreneurs. As the Founder and CEO of Hubler, I believe these budget initiatives will pave the way for a more vibrant and broad-based entrepreneurial landscape.”
Vinay Agrrawal, Founder and CEO of Hubler
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
Tresa Motors commends the Union Budget 2024 for taking significant strides towards upskilling. With the growing demand for expertise in areas like battery technology and power electronics, the budget’s focus on upskilling programs and industry-education collaboration is crucial in bridging the skills gap. Skilled workers are essential for the EV industry’s growth. It’s an exciting time with abundant opportunities for those willing to learn new skills. The government’s initiative to upskill students over the next five years will ensure a steady supply of talented professionals, driving innovation and sustainability in the EV sector.
Mr Ravi Machani, Co-Founder Investor, Tresa Motors
The Union Budget’s focus on increasing women’s workforce participation and youth skilling is a significant step towards addressing key barriers women face in the workforce, promoting gender equality and economic empowerment. The youth skilling initiative is a forward-thinking move that will enhance workforce skills and employability, driving industry growth and boosting the gig economy, particularly by increasing two-wheeler and three-wheeler sales beyond metropolitan areas. Abolishing the angel tax is a commendable decision to foster innovation and support the start-up ecosystem.
However, we anticipated announcements on the FAME-III policy and special incentives for the EV sector, which weren’t part of this budget. Maintaining policy consistency will be essential to the overall expansion of the electric vehicle market. We expect that the government will provide clarification and lower or eliminate taxes on last-mile delivery services before the present program expires this month.
Ms. Rashi Agarwal, Co-Founder and CBO, Zypp Electric
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 LV, Founder at Nuvepro Technologies
While we have to still read the complete change on the abolishment of angel tax but on the face of it, this action has the ability to bring lot of regulatory clarity which generally is appreciated by the investor communities across the world. This should help founders looking to raise capital both in domestic and international markets.
Ankur Mittal, Cofounder, Inflection Point Ventures
The Union Budget 2024-25 reflects the Government’s strong commitment to fostering economic growth, with a clear focus on infrastructure development, boosting consumption, and promoting domestic manufacturing.
Key initiatives include significant capital expenditure increases, incentives for skilling and employment, and enhanced support for MSMEs. The budget also emphasizes women’s empowerment, with new schemes for housing and entrepreneurship, and aims to drive technological advancements through R&D incentives for emerging technologies like AI and the Internet of Things (IoT).
These measures, along with efforts to promote ‘Made-in-India’ (MII) technologies in both the private sector and PSUs, are expected to significantly bolster the country’s economic trajectory and technological prowess, especially in the critical areas of Cybersecurity and Artificial Intelligence.
Govind Rammurthy, CEO and Managing Director of eScan,
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 developmentDr. Ashish Agarwal, Co-Founder & CTO, Weather Risk Management Services
“The Union Budget 2024-25 provides significant support to the manufacturing sector, particularly through its focus on MSME clusters. The introduction of easy financing and credit guarantee schemes, along with the facilitation of collateral-free term loans for the purchase of machinery and equipment, will greatly enhance the manufacturers and suppliers network. These measures act as catalysts for the entire supply chain, driving growth and innovation. Additionally, the budget’s emphasis on employment in the manufacturing sector addresses a longstanding challenge, creating new opportunities and fostering a more robust workforce. For manufacturers like us, this budget is truly a blessing, offering the much-needed support to propel our industry forward.”
Mr. Su Piow Ko, CEO of AET Displays
This was an albatross that hindered much needed capital to be deployed to deserving founders. Removal of this dreaded tax will give a huge fillip to startups in the country and free up investors to focus on the investments without having anxiety on how to deal with their implications. A few other things that work well for deep tech focused funds like us. The rooftop solar policy, the pumped storage policy and research and development for small & modular nuclear reactors, Bharat small reactors, R&D for small modular reactors, R&D for new technology in nuclear form a neat troika to alter the energy map of India. Specially on the nuclear side, it positions India to replicate the renaissance that nuclear is experiencing in the US.
Mayuresh Raut, Managing Partner, Seafund
As a deep tech focused VC fund, FM announcing Rs 1000 crore space economy VC fund and R&D fund of Rs 1 lakh crore will work as a strong catalyst for startups in deeptech and space tech. This Budget has given attention to several demands of the industry which have been long standing. Rationalising of LTCG to 12.5% for all financial and non financial assets is also a step to bring parity between listed and unlisted companies. However, the biggest take away from the Budget is removal of angel tax. This will lead to ease in raising funding for early stage founders and will encourage more early stage investors and angels to look at startup investing as a fruitful asset class. In our view, this single announcement is a small step in the direction of making angel investment accessible for people with investment corpus which currently goes to markets and Mutual funds
*Budget reaction from Manoj Agarwal, Managing Partner, Seafund*
