Anirudh A Damani -Managing Partner – Artha Venture Fund
“The removal of the angel tax will make it significantly easier for us to complete transactions faster and streamline the investment process. Previously, the requirement for income tax officers to understand and assess valuations led to unnecessary conflicts and delays, involving CAs, valuers, and tax officials. Valuation assessments were never meant to fall within the purview of income tax officers, and this change eliminates those complications. This simplification allows us to focus on our primary job—investing in and supporting innovative startups—without the burden of navigating through cumbersome tax regulations.
As a venture capital fund, we see the Indian Budget 2024’s tax reforms as a major boost for the VC, PE, and startup ecosystem. The increase in LTCG tax rate for financial assets to 12.50% and STCG to 20% may pose challenges for listed investments. Still, it’s a significant advantage for other financial products like startups and Alternative Investment Funds. The reduction in LTCG tax from 20% to 12.50% for these investments will result in substantial savings and increased IRR, fostering growth and innovation. While we await the detailed budget, this move is a long-awaited positive development that will make India an even more attractive destination for global investors and drive further growth in the venture capital and private equity sectors.”
Ratna Mehta – Managing Partner, Fundalogical Ventures
“Abolition of angel tax will provide a boost to the budding Indian startup ecosystem. It will encourage the flow of capital without tax leakages, especially relevant at a time when the funding crunch is impacting startup liquidity. It is key to establish India as an innovation hub and leader v. follower for new and breakthrough ideas. Focus of the budget is on sustainable growth with employment generation, of continuity and stability. The changes on the capital gains tax structure was unexpected, especially during a time when the fiscal position of the economy seems to be in check.
The logistics and supply chain is the lifeline of India’s growth story. The budget’s identification of infrastructure, manufacturing, and skilling as key areas for long-term development and subsequent allocation is a step in making India the logistics and manufacturing powerhouse of the world. As a fund focused on investing in supply chain and logistics, we are bullish on backing innovative entrepreneurs building the support ecosystem of India’s supply chain. The government’s move to set up E-commerce export hubs to be set up for enabling MSMEs to export their local products is a huge step in the direction of driving growth through innovation and building on new-age trends to drive MSME growth.
Ashish Singhal, Co-founder, Lemonn and CoinSwitch
“We welcome the Union Budget 2024-25 as a pro-development budget bringing great news for startups. As a founder and angel investor, I’m thrilled that the Angel Tax has been abolished. This will significantly bolster the entrepreneurial ecosystem in India.
The emphasis on digital public infrastructure and the digitalization of the economy will greatly benefit tech startups like ours, which are focused on developing population-scale apps for Indians.
However, the securities markets face challenges with the increase in short-term capital gains tax from 15% to 20%, the rise in long-term capital gains tax from 10% to 12.5%, and the hike in STT on F&O. The immediate market reaction has been less than positive.
Regarding crypto, we had hoped the government would reduce taxation to align it with other asset classes. Unfortunately, this has not been addressed, representing a missed opportunity to support startups and investors in the crypto space.
We are still examining the finer details of the budget to fully understand its broader implications.”
Roland Landers, CEO, All India Gaming Federation
The All India Gaming Federation (AIGF) welcomes the focus on skilling in the 2024 Budget. There remains a significant skill gap in India’s gaming industry, and the increased emphasis on skilling initiatives is a promising step towards bridging this gap. Centrally sponsored schemes for skilling youth, women-focused programs, the establishment of industrial training institutions, and the provision of internships are all set to create a more skilled workforce. These initiatives will play a crucial role in helping India achieve its Vision India@2047.
Mr. Tarun Singh, Managing Director of Highbrow Securities
The Union Budget has impacted the buoyant stock market, but its effect feels more symbolic than substantial. The fundamental impact on investors will be negligible, as any changes in capital gains taxation will soon be factored into future plans. The market sentiment will remain conducive for investors. However, the budget’s opportunistic flavour cannot be ignored.
On a brighter note, the budget’s incremental yet pivotal steps towards fostering an inclusive manufacturing and MSME landscape are commendable. The proposed initiative lays a sustainable and secure foundation for investors to explore emerging opportunities within this vital economic segment.
One of the key standout aspects of this budget is its respect for the existing consumption patterns. In the market realm, consumption is king, and any disturbance to this trend could ripple negatively across the economic spectrum. By preserving the status quo here, the budget has safeguarded the ongoing consumption story that fuels market growth. The Stock Markets, thus, can absorb minor setbacks and continue on a bullish path, backed by stable and robust consumer demand.
In my opinion, this budget is neither extravagant nor groundbreaking, but sometimes, not rocking the boat is an act of wisdom. This Union Budget may not sparkle with dramatic flair, but its understated elegance might very well be the unsung hero of our economic narrative this year.
I am anticipating a favourable year ahead, with markets expected to benefit from sustained consumption and emerging opportunities in the revitalised MSME and Manufacturing sectors
Abhay Parnerkar, CEO, Godrej Tyson Foods Ltd
“The Union Budget’s emphasis on agricultural development, particularly the creation of large-scale vegetable production clusters, is a significant step forward in strengthening the country’s food value chain. This initiative aligns perfectly with our vision of a robust and sustainable food ecosystem. Additionally, the focus on natural farming is commendable and will undoubtedly contribute to the overall health and well-being of our nation with enriched farm to table experiences for consumers. We are optimistic about the potential of these initiatives to enhance food security, improve farmers’ livelihoods, and drive economic growth. I also firmly believe the growth in frozen food category will reduce wastage and nutrition loss in the food value chain”
Amar Nagaram, Founder and CEO of Virgio
“The Finance Minister’s budget theme, with its emphasis on Employment, Skilling, and MSMEs, showcases a forward-thinking approach that is well-suited to the evolving needs of the Manufacturing and D2C industries. This budget, aligned with the Viksit Bharat vision during the Amrit Kaal, introduces several key incentives aimed at boosting job creation and enhancing workforce skills. The special focus on MSMEs will provide critical support for innovation and expansion, facilitating growth across various sectors. Importantly, the abolishment of the Angel Tax will play a pivotal role in supporting startups, easing fundraising, and encouraging more investment in innovative businesses. Overall, this growth-oriented budget represents a significant step toward creating a more inclusive and dynamic economy, fostering opportunities for businesses and entrepreneurs alike.”
Karthik Kondepudi, Partner at Herbochem
“I appreciate the Government of India for supporting the MSME sector. It is a commendable step from the Government that now the MSMEs in the manufacturing sector will benefit to grow without any burden of collaterals, with the Credit Guarantee Scheme for MSMEs which will guarantee a cover up to ₹100 crore. The new way of assessing MSME credit using digital footprints for credit appraisal will be far better than conventional methods and increase credit availability for many businesses. Also, credit support during any stress period will ensure that operations of the MSMEs are kept continuous since this is an important factor influencing the survival and growth of businesses. Increasing the Mudra loans limit up to ₹20 lakh, strengthening the TReDS platform space and covering more clusters with SIDBI will fulfill the needed funds and working capital needs of the sector. The measures for establishing the food irradiation units and quality testing lab will strengthen the base of the food sector both in terms of quality and safety. In summary, this budget provides a solid ground for MSME to grow, compete internationally, and act as a major driver of the Indian economy.”
Gurjodhpal Singh, CEO, Tide in India
“While the budget reflects a commendable focus on employment, skilling, and women, it is important to recognise that many of the policies will need a robust implementation. The increase in Mudra loan limits from ₹10 lakh to ₹20 lakh is a positive step for entrepreneurs, yet the on-ground implementation of the government’s policy directive needs stronger adoption at the grassroots level.
The government’s commitment to enhancing women’s participation in the workforce through initiatives like working women’s hostels and creches is a welcome development.
The allocation of over ₹3 lakh crore for schemes benefitting women and girls as well as setting up of women-specific skilling programmes to boost women’s participation in the workforce, signals a significant commitment to women-led development. However, there remains ample room for improvement in the execution and scope of these policies.
The introduction of a new assessment model for MSME credit is a step in the right direction, allowing for a more nuanced understanding of credit eligibility that extends beyond traditional metrics. Several fintechs and non-traditional financial institutions have been working on this front for a while now, so a collaboration between government and the fintech ecosystem to facilitate this would be a great post-budget action item.
In sum, while there are positive elements in this budget, there is still room for improvement in terms of the implementation and outcome of these initiatives. The journey toward comprehensive support for all sectors, particularly for women and MSMEs, is ongoing, and we look forward to seeing how these initiatives evolve in the future.”
Raj N, Founder at Zaggle
“This budget is a holistic growth engine prioritizing education & skill development, women’s entrepreneurship, and the benefits and relief for the startup ecosystem. The elimination of the angel tax is a step in the right direction, as it eases investor concerns and promotes innovation. Moreover, the allocation of nearly ₹3 lakh crore towards initiatives that assist women and girls demonstrates the government’s commitment to women’s entrepreneurship.
In order to better correspond with industry demands, the budget for education and skill development will modernize 1,000 Industrial Training Institutes (ITIs) and offer internships to the youth at 500 top companies in the country. The government has prioritised the preparation of a workforce that is future ready. We also commend the government for announcing increased financial support to startups and MSMEs during periods of stress. Lastly, revised tax slabs and increased exemptions are welcome news for the salaried individuals, which will undoubtedly ease the financial strain on middle-class families, offering them much-needed relief.”
Akshay Mehrotra, Cofounder & CEO, Fibe, India’s leading fintech and consumer lending platform
This year’s Budget has taken a forward-looking approach, aimed at building a self-reliant economy with MSMEs and startups as key drivers of Bharat’s next phase of growth. It is encouraging to see the Government’s focus on creating more jobs for the youth with enhanced focus on skill upgradation. This clubbed with the reduction in taxes for the salaried class signifies the strategy to support individuals in the middle-income group and younger professionals, leading to their professional development.
Furthermore, the efforts to promote sustainable energy solutions will give a boost to more ‘Make-in-India’ businesses and boost innovation in the clean energy space, creating more job opportunities for the youth. Besides, the focus on MSMEs is another step forward in driving the nation’s progress. The enhancement of Mudra loans to ₹ 20 lakh will fuel the growth of mid-level companies (INR 50 lakh to 2 crore revenue) and ensure they get enhanced opportunities. Lastly, the increase in capital gains tax will pose challenges for venture capitalists and investors, especially when exiting. On the other hand, the abolishment of angel tax will provide the much-needed boost to the startup ecosystem and help them thrive in India.”
Sachin Agrawal, Co-Founder & CEO at Bizongo
“It’s a significant move that the government is putting special attention on MSMEs and the manufacturing sector through this budget. The newly announced credit guarantee scheme and term loans will enable MSMEs to purchase machinery and equipment without the need for collateral, which will further help the sector spur the industry’s growth. This initiative is expected to alleviate financial barriers for MSMEs, fostering increased productivity and technological advancement across the sector, which is essential for the country’s overall economic growth.”
Avinash Shekhar, CoFounder & CEO, Pi42
This growth-oriented budget underscores the importance of upskilling and youth development as a foundation to Bharat’s progress. It is interesting to see that one crore youth will be skilled by India’s top companies within five years, and 20 lakh will receive specialized training over the same period. Learning new skills and tech is crucial for fostering innovation and driving the country’s growth. By equipping our youth with cutting-edge skills, we can ensure they are capable of developing and implementing new solutions that address contemporary challenges. Blockchain technology and crypto will play a pivotal role in empowering today’s youth, ensuring they are at the forefront of innovation and economic growth This not only enhances individual career prospects but also contributes to the nation’s competitive edge on the global stage thus contributing to a Vikshit Bharat.
Saransh Chaudhary, President, Global Critical Care, Venus Remedies Ltd and CEO, Venus Medicine Research Centre
The Central government’s decision to exempt three more cancer medicines from customs duty is a commendable step towards making cancer drugs more affordable and incentivising manufacturers by reducing their costs. We also welcome the Finance Minister’s announcement to include manufacturing & services and innovation, research & development among the nine priority areas identified by the government to ensure fast-paced growth in line with its vision of “Viksit Bharat”. Pharma manufacturing being India’s strength, we expect the government to build on it with its incentive-based approach. A renewed focus on innovation and R&D, on the other hand, will transform India into a value-driven economy, unleashing its immense potential wealth creation potential.
Mr. Sanjay Dighe, CEO & Director of Krystal Integrated Service Ltd
The Union Budget 2024 presented by the Finance Minister demonstrates a comprehensive and forward-thinking approach, significantly impacting various sectors.
The government’s partnership with State Governments and Multilateral Development Banks to promote water supply, sewage treatment, and solid waste management projects in 100 large cities will fuel the demand for facility management services. These projects will require specialized skills and expertise in managing complex systems and infrastructure, aligning perfectly with the goals of skilling and employment outlined in the budget.
Moreover, the focus on industrial development, particularly the establishment of an industrial node in Gaya as part of the Amritsar-Kolkata industrial corridor, will drive the need for comprehensive facility management solutions to support the burgeoning industrial activities. This will not only involve managing and maintaining industrial facilities but also ensuring compliance with environmental and safety standards.
We are particularly optimistic about the focus on creating employment opportunities. The one-time wage incentive for first-time employees through DBT and the internship program launching in 500 companies for one crore youth over five years are commendable initiatives. Additionally, clarity on tax exemptions for services provided to government entities would be highly beneficial.
Overall, the strategic priorities set forth in the Union Budget will create a robust demand for facility management services, as the industry will play a critical role in supporting the growth and sustainability of India’s economic infrastructure.
Mr. Rohit Mali, Director, Firefly Fire Pumps
“I am thrilled with the Budget 2024-2025 announcements that demonstrate a visionary commitment to MSMEs and labor-intensive manufacturing, essential pillars for India’s economic growth. The comprehensive package of financial, regulatory, and technological support signals a transformative era for MSMEs, enabling them to scale operations and compete globally.
Moreover, the Credit Guarantee Scheme for MSMEs in manufacturing, leveraging digital footprints for credit assessment, and measures to support MSMEs during stress periods are game changers that will foster innovation, expand access to credit, and sustain entrepreneurial resilience. Enhancements in Mudra Loans, mandatory onboarding on TReDS, and SIDBI branch establishments in MSME clusters will unlock working capital, improve credit access, and extend critical support nationwide.
In essence, this budget lays down a robust roadmap for MSMEs, propelling us towards the vision of ‘Viksit Bharat’. We at Firefly Fire Pumps are excited to align our efforts with these initiatives, fostering an environment where MSMEs can thrive and contribute significantly to India’s economic renaissance.”
Mr. Abheek Barua, Chief Economist and Executive Vice President, HDFC Bank
The central focus of this budget has been on employment and associated issues like skill formation. The government’s efforts to reap India’s demographic dividend is visible in its push towards labour intensive production, its skilling initiative, incentivising formal job creation and increasing participation of women in the workforce. The budget estimate that these measures will help create 8 million jobs per year — which is line with the employment requirement that has been set out in the economic survey.
The change in income tax slabs along with the direct benefit transfer to first time workers, is likely to spur consumption, particularly for small ticket items, by increasing disposable incomes. The budget’s policy mix – including continued capex, job creation, support for manufacturing, agriculture, and rural development – is likely to be positive for India’s potential growth.
The government made no compromise on its capex plans despite the increased allocation to some of its allies. The commitment towards fiscal consolidation with a reduction in the fiscal deficit to 4.9% of GDP in FY25 is a positive for medium-term debt sustainability.
Although markets have been disappointed with the increase in the capital gains tax, this is line with the communication by different branches of the government and regulators to be cautious and prevent any excess build-up of risk in the system.
Dr. Silpi Sahoo, Chairperson, SAI International Education Group
“The Union Budget 2024–25 shows a strong commitment to youth empowerment, acknowledging that it is essential to the success of our country. A 30% increase in funding to Rs 1.48 lakh crores has been allocated for education, employment, and skill development; this is a necessary and promising initiative. Students from low-income backgrounds benefitting from the provision of financial support for loans up to ₹10 lakh for higher education is a welcome move by the Government. Internship chances at 500 leading companies for 1 crore students during a 5-year period coupled with an internship allowance of ₹5,000 per month and a one-time aid of ₹6,000 will offer invaluable exposure and professional experience to the youth of India. Furthermore, the skilling project, which is a partnership between business and state governments, intends to improve 1,000 Industrial Training Institutes to train 20 lakh kids over the course of five years is a notable development in the Union Budget. I am sure that many students will benefit from the redesigned Model Skill Loan Scheme, which would provide loans up to ₹7.5 lakh backed by a government-sponsored fund. This will help the youth to be more professionally trained. Also, The Eastern region’s ‘Purbodaya’ plan and the emphasis on digitization and technology adoption prioritizing infrastructure, economic prospects, and human resource development will be a key to turn the region into a major player in the global economy. If these policies are implemented effectively, Bharat is on the path to attaining global leadership.”
Mr.Bantwal Ramesh Baliga, Group CEO of Acquaviva.
The scheme introduced in the budget to incentivize the hiring of first-time employees is a game-changer for the manufacturing sector. By benefiting 3 million youths and their employers through direct incentives based on EPA contributions over four years, the government is not only encouraging job creation but also nurturing a skilled workforce. This initiative reflects the Modi-led NDA Government’s commitment to boosting economic growth and employment opportunities.
The budget’s announcement to prioritise the participation of women in the workforce is welcomed in sectors like hospitality and retail. This initiative aims to diversify the workforce and recognizes the contributions that women can bring to these sectors. The budget is paving the way for greater gender equality and economic empowerment within these industries.
Furthermore, the announcement to promote water supply, sewage treatment, and solid waste management projects for 100 large cities reflects an approach to infrastructure development. These initiatives will not only enhance urban living standards but also increase demand across various industries involved in construction, engineering, and environmental technologies.
Overall, the budget’s focus on incentivizing employment, supporting women’s participation in key sectors, and advancing urban infrastructure projects is set to catalyse industrial growth, create new job opportunities, and drive sustainable economic development. This forward-looking strategy positions India for long-term resilience and prosperity.
Dr. Ajai Chowdhry, Co-Founder HCL, Founder & Chairman, EPIC Foundation and Chairman-Mission Governing Board, National Quantum Mission
“The new budget is a game-changer! Significant impetus has been provided by the government to further strengthen the startup ecosystem. Happy to see support for Space Tech and a generous ₹1 Lakh Crore allocation for R&D in the private sector. The support for small nuclear reactors is commendable; moreover, the abolishing of the Angel Tax will go a long way in bringing greater investments, making it a big win for startups. Similarly, there’s great support for MSMEs and an impressive job-linked incentive scheme. The focus on Ease of Doing Business and the introduction of plug-and-play manufacturing infrastructure under PPP, along with worker dormitories, is a well-rounded approach to foster growth and innovation.”
Dr V Veerappan, Chairman, IESA
The Union Budget 2024 appears promising for the government’s commitment to making India a global powerhouse for electronics production. The funding for product development and the creation of an ecosystem for electronic components is an important step and will play a catalyst in product creation and building a component ecosystem. The budget allocation of Rs 1 lakh crore to support commercial private-sector research will serve as a critical impetus for the sustained momentum of the Electronics and Semiconductors sector, as well as for R&D, innovation, and technological advancement. We are in favor of the government’s prospective incentives for job growth in the industrial sector, as well as the direct benefit transfer plans for new employees. These measures will not only increase employment but also cultivate a culture of quality and innovation throughout the industry. On the FLIP side, India should be cautious on FDI from China in this strategically important sector.
Ashok Chandak, President, IESA
IESA welcomes the budget’s strong focus on manufacturing, job creation, MSME support, women’s employment and rationalisation of customs duty. The initiatives mentioned are expected to act as catalysts for creating a new workforce in the thriving semiconductor and electronics sector which is facing an acute shortage of relevant skills. Additionally, allocating 1 lakh crore for research, removal of Angel tax, and support for prototypes will bolster local R&D, product innovation, and the startup ecosystem. However, caution is warranted regarding China’s FDI in this strategically vital sector. Any move to relax FDI norms for China in electronics and semiconductors could potentially stifle the emerging electronics components industry and have long-term implications for the telecom, defence, and aerospace sectors which are crucial for India’s security. IESA is working with MeitY on the new National Policy on Electronics and hope some of the measures for product development in the Electronics and Semiconductors verticals , Increased support toward enhancing local value addition and PLI for electronic components would get covered.
Dilip Gangaramani, Founder Director & CEO of Target Publications Pvt. Ltd.
He expressed appreciation for the recently announced interim budget. He said, “The government’s initiative to provide financial support for higher education loans up to Rs 10 lakh is commendable. This move will enhance accessibility to quality education. The allocation of Rs 2 lakh crore for employment and skilling initiatives is also a positive step towards addressing youth unemployment. Interestingly, the proposed comprehensive internship program for one crore youth is a commendable initiative, emphasizing its potential to bridge the gap between academia and industry. Overall, the budget’s focus on education, employment, and skill development aligns with the nation’s developmental goals and is a welcome step forward. These measures, if implemented effectively, can significantly boost India’s human capital development and contribute to a more skilled and employable workforce.”