The Union Budget 2024-25, presented by Finance Minister Nirmala Sitharaman, marks a significant step towards realising the vision of a ‘Viksit Bharat’. The Union Budget focuses on fiscal consolidation with a target of a 4.9% fiscal deficit of GDP. Key allocations include substantial funding for infrastructure, rural development, employment, and skilling initiatives. Significant policy changes include the abolition of the Angel Tax for startups, and promoting investment and innovation. The budget emphasises technology, with increased funding for research and development, also prioritising digital infrastructure, and women’s development with a strong support to MSMEs and entrepreneurship.
To provide a deeper understanding of the budget’s impact, here are some reactions from various industry experts:
Nemesisa Ujjain, VP & Head of The Circle FC, noted the budget’s robust foundation for economic growth, investments, and capital formation. The enhanced tax deductions, increased Mudra loan limits, and concessions for MSMEs are expected to boost entrepreneurial growth. The reduction in tax for foreign companies from 40% to 35% is anticipated to attract higher FDI, creating new growth opportunities.
Karan Verma, Co-Founder and Director of FAAD Network emphasised the budget’s dedication to economic stability and growth. He highlighted the introduction of a new ₹5,000 crore fund to support innovation and the extension of tax benefits for startups. The establishment of a ₹1,000 crore venture capital fund for the space economy demonstrates a forward-looking vision, positioning India as a leader in this emerging sector. These measures are expected to provide a significant boost to the startup ecosystem, fostering innovation and long-term growth.
Vijay Navaluri, Co-founder & Chief Customer Officer of Supervity, praised the budget for its strong emphasis on technology and innovation. The abolition of the Angel Tax for investors is expected to significantly enhance the startup ecosystem, fostering greater investments and innovation. The allocation for research and development, particularly in space economy and renewable energy, underscores the government’s commitment to supporting cutting-edge technologies. Supervity AI anticipates these developments will propel India towards becoming a global tech leader.
Shashank Saurabh, Co-founder & CEO of QUE, expressed enthusiasm about the budget’s support for digital and infrastructure growth. The abolishment of the Angel Tax and the focus on digital public infrastructure align with QUE’s mission to leverage digital advancements. The budget’s emphasis on women’s development and substantial allocations for schemes benefiting women and girls resonate with QUE Universe’s ethos of empowering women.
Anubhav Dubey, Co-founder of Chai Sutta Bar, highlighted the budget’s commitment to rural development, which is crucial for improving connectivity and expanding markets. The special attention to MSMEs and initiatives to foster entrepreneurship are seen as positive steps that will benefit the startup ecosystem and the broader economy.
Sajju Jain, an entrepreneur, startup coach and Harvard Business School alumnus, acknowledged the abolition of the Angel Tax as a positive move. He welcomed the allocation of Rs. 2 lakh crores for employment creation and skill development, especially through internships in top companies. However, he noted that direct support for startups in the budget remains limited, and sustained support will be necessary to build long-term capacity and capabilities.
Mr. Soumya Sarkar, Co-Founder of Wealth Redefine (AMFI registered MFD), commended the government’s fiscal discipline, highlighting the fiscal deficit target of 4.9% of GDP. The budget’s focus on infrastructure, rural development, employment, and skilling initiatives promises to drive economic growth and create new opportunities. The abolition of the Angel Tax for startups is seen as a crucial boost for the entrepreneurial ecosystem. However, the proposed tax hikes on short-term and long-term capital gains might dampen investor sentiment despite the simplification of capital gains taxation.
Gautam Madhavan, Founder and CEO of Mad Influence, welcomed the
budget’s focus on economic growth and support for innovation. The emphasis on digital public infrastructure and the abolition of the Angel Tax are expected to empower digital creators and influencers, fostering a vibrant and sustainable digital economy.
Arun Alagappan, Executive Chairman, Coromandel International Limited, said, “The government’s commitment to get 1 crore farmers into organic farming and promote large-scale horticulture production in the next two years will significantly increase agricultural productivity and sustainability. The establishment of the proposed 10,000 need-based bio-input resource centres will help in making natural farming more accessible to Indian farmers. Furthermore, the emphasis on strengthening the production, storage, and marketing of pulses, along with financing for shrimp farming, showcases a holistic approach to supporting diverse agricultural activities. The allocation of ₹1.52 lakh crore for agriculture and allied sectors is a clear indication of the government’s dedication to transforming this critical sector,” he said.
He added that the government’s plan to implement digital crop survey for kharif crop in 400 districts as well as the release of 109 weather resistant seeds, will drive innovation and efficiency in farming
practices.
Priyadarshi Nanu Pany, Founder & CEO, CSM Tech, found the Budget’s focus on MSMEs very nuanced on the sector’s challenges and potential.
“The credit-centric measures—including the new guarantee scheme, stress-period support, and the digital footprint-based assessment model could revolutionise MSME financing. By reducing reliance on collateral and traditional metrics, these initiatives promise to unlock capital for a broader spectrum of enterprises, potentially catalysing growth and job creation. The expansion of TReDS and SIDBI’s reach demonstrates a commitment to improving liquidity and financial inclusion across MSME clusters,” he said.
Overall, the Union Budget 2024-25 is seen as a forward-looking initiative aimed at boosting economic growth, fostering innovation, and improving the ease of doing business in India. The government’s commitment to infrastructure, technology, and rural development, alongside fiscal discipline, sets a positive tone for India’s economic trajectory in the coming years.