July 23, 2024: India’s startup ecosystem is poised to reach new heights, Union Budget 2024 has introduced several transformative measures to foster innovation, entrepreneurship, and economic growth.
Prime Minister Narendra Modi highlighted the government’s commitment to nurturing the startup sector, stating, “This budget has brought new opportunities for our startups and innovation ecosystem. A fund worth Rs 1,000 crore will be ensured to promote the space sector.”
Union Minister Dr. Jitendra Singh echoed this sentiment, emphasizing, “Budget 2024–25 will boost StartUps and the startup ecosystem through bold and innovative proposals like ending ‘Angel Tax’ and introducing paid internships.”
Budget 2024: PM Modi Announces ₹1,000 Crore Fund for Space Startups
Key highlights of Budget 2024 include the abolition of Angel Tax, a contentious provision that had created uncertainty in the fundraising process for startups. This move is expected to provide clarity and confidence to startups and investors alike, facilitating smoother capital inflows and fostering growth.
Rohit Bansal, Chair of FICCI Startup Committee and Co-Founder of Titan Capital VC & Snapdeal, commended the budget, stating, “The abolition of Angel Tax is a much-needed resolution which removes the uncertainty in the fundraising process by startups. The clarity will help both startups and investors move forward decisively.”
Additionally, Budget 2024 increases the Mudra loan limit to Rs 20 lakh, introduces a Rs 1 lakh crore Anusandhan National Research Foundation, and earmarks Rs 1,000 crore for a Venture Fund aimed at supporting space startups. These initiatives are designed to bolster the startup ecosystem, promote research and development, and stimulate innovation across various sectors.
Union Budget 2024 Boosts Startups with ₹1,000 Crore Fund for Space Sector
Kunal Bahl, Chairman of CII Startup Council and Co-Founder of Acevector, emphasized, “The startup orientation of this budget is welcome by the industry. It further strengthens the foundation and the bedrock of the startup ecosystem in India. Angel tax was turning into a big impediment for young startups and abolishing it is good news for the sector.”
Moreover, the budget’s focus on MSMEs, credit guarantee schemes for manufacturing, and technology support packages underscores the government’s comprehensive approach to fostering inclusive growth and employment generation.
With these strategic measures, Budget 2024 aims to unleash the full potential of India’s startup ecosystem, paving the way for innovation-driven economic expansion and enhancing India’s global competitiveness in emerging technologies and sectors.
The budget’s initiatives are expected to invite much-needed financial support for startups across Bharat, thereby bolstering rural development and enabling sectors such as renewable energy, healthcare, infrastructure, aviation, and more to expand their outreach and impact in rural India.
