The article discusses the positive reception of the 2024 Union Budget by the startup industry, particularly praising the abolition of the angel tax, which has long been a challenge for Indian startups. This move is seen as a landmark decision that will enhance ease of doing business and encourage more investments in the startup ecosystem.

 

Mayuresh Raut, Managing Partner at Seafund, praises the removal of the angel tax, which will ease concerns for capital venture investors and enhance startup funding in India. He also highlights India’s deep tech initiatives in rooftop solar, pumped storage, and small modular nuclear reactors. These policies are set to transform India’s energy landscape, positioning the country to benefit from advancements similar to the nuclear renaissance in the U.S., further promoting innovation and sustainability in the energy sector.

 

Industry experts believe this reform will significantly reduce tax burdens and make India a more attractive destination for global investors, supporting the growth of innovation and entrepreneurship.

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The Union Minister for Finance and Corporate Affairs, Nirmala Sitharaman, proposed to abolish ‘angel tax’ for all classes of investors, while presenting the Union Budget 2024-25 in Parliament today. She added that this move is aimed to bolster the Indian start-up eco-system, boost the entrepreneurial spirit and support innovation.

 

 

Abhinav Jain, Co-Founder & CEO, Almonds AI:

 

“The Union Budget 2024 has delivered a landmark decision for India’s start-up 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 start-up 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 start-up 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.”

 

 

Ravi Mittal, CEO & Founder, QuackQuack:

 

“Abolishing Angel Tax will have favourable long-term implications for the Indian start-up ecosystem. This 2024-25 Union Budget is highly influential to ensure long-term success in the start-up ecosystem. By doing away with the Angel Tax, start-ups have been enabled to encourage a renewed business approach and enhance valuation. This will enable start-ups to undertake expansion initiatives without concerns about taxation, while also attracting increased funding from angel investors. Furthermore, the centre’s emphasis on upskilling will provide a viable pipeline of trained professionals for start-ups, ensuring long-term growth and scalability.”

 

 

Arjun Prasad, Co-Founder and Chief Strategy Officer, QX Lab AI:

 

“The abolition of the angel tax for all classes of investment is a monumental step towards fostering a vibrant start-up ecosystem in India. This move will boost the entrepreneurial spirit and drive innovation, giving start-ups greater access to essential capital, particularly in the AI sector, which is expected to be a game changer for businesses and economies.

 

 

Upgrading 1,000 industry training institutes in a Hub and Spoke arrangement will bridge the skill gap and prepare youth for future jobs. The emphasis on women-led development and AI-driven upskilling for women highlights a commitment to gender equality and inclusive growth. Public investment in digital infrastructure and private sector innovation showcases the power of technology in enhancing access to essential services. Initiatives like the Jan Vishwas Bill and the Anusandhan National Research Fund, with a pool of Rs 1 lakh crore, will propel research, innovation, and ease of doing business.

 

 

We appreciate the government’s steadfastness in fostering the start-up community. This futuristic approach will place India at the top of the generative AI list thus, promoting economic activities, embracing innovation, and fighting inequality through inclusivity.”

 

 

Gunjan Agarwal, Co-founder, XYST:

 

“Abolishing Angel Tax will have a long-term impact on start-up founders. This will not only motivate angel investors, but also help to encourage entrepreneurial spirit in the Indian business domain. Additionally, the job generation push, coupled with the government’s financial assistance will help start-ups acquire more talented professionals, leading to cumulative growth in the long term. This Union Budget is full of opportunities for Indian start-ups pushing to become the next Unicorn, and governmental assistance is bolstering it to ensure success and growth.”

 

 

Mayuresh Raut, Managing Partner, Seafund:

 

“The Angel Tax 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 start-ups 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. Especially on the nuclear side, it positions India to replicate the renaissance that nuclear is experiencing in the US.”

 

Vinay Agrrawal, Founder and CEO, Hubler:

 

“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 start-up 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.”

 

 

Amit Khatri, Co-Founder, Noise:

 

“The Union Budget 2024 presented by Finance Minister Nirmala Sitharaman is a visionary step towards inclusive growth, with a strong emphasis on manufacturing, upskilling, and women empowerment. Youth and participation of women in the workforce hold the key to India’s success. To this end, the focus on extensive training and skill development initiatives demonstrates a clear commitment to boosting employability and productivity. By linking job creation in manufacturing to first-time workers and offering EPFO incentives, the government is paving the way for a robust manufacturing ecosystem, creating 4 crore jobs over the next five years. It is certainly a commendable initiative to boost local manufacturing. Additionally, offering internship opportunities in the top 500 companies to 1 crore youth is a strategic move that will equip our young population with the skills and experience necessary to thrive in a competitive global economy.

 

The establishment of e-commerce export hubs in a PPP model is another significant step taken by the government and will significantly empower MSMEs and traditional artisans to compete internationally. It will open opportunities for Indian players to boost their reach globally while enhancing the ease of doing business and accessing new markets. India has long been an attractive consumer market for international brands, supported by our collaborative and business-friendly policies that enable seamless operations. The export hubs are an efficient step in unlocking similar avenues for homegrown companies, allowing a global stage for their innovation and entrepreneurial mindset, and strengthening India’s position in manufacturing.

 

Lastly, I feel the abolition of the angel tax will undoubtedly boost funding in the start-up ecosystem, fueling innovation and growth. This move, along with incentives for job creation in the manufacturing sector and support for MSMEs, will not only stimulate valuable employment opportunities for millions of young people but also ensure economic resilience, laying a strong foundation for a powerful growth trajectory for India. Driven by the vision of Viksit Bharat, we look forward to actively participating in the nation’s journey towards global prominence and innovation leadership.”

Published on: JulY 23, 2024