Yay or Nay? How Startups Are Reacting To Union Budget 2024?

The Union Budget 2024-25, presented by Finance Minister Nirmala Sitharaman, has set the stage for significant developments in India's startup ecosystem. From healthcare advancements and women's empowerment to spacetech innovations and environmental sustainability, this budget promises transformative changes across multiple sectors.

But what do the startups themselves think of these new policies? We've gathered insights from key industry leaders to provide a comprehensive look at the startup community's reactions. How will the removal of the angel tax impact funding? What does increased support for MSMEs mean for new businesses? How will healthcare and education initiatives drive future growth? Join us as we delve into these questions and more, exploring the varied perspectives of those at the forefront of India's startup landscape.

Healthcare Initiatives and Tribal Development

The introduction of the Pradhan Mantri Janjati Unnat Gram Abhiyan scheme, aimed at improving living conditions for 50 million tribal individuals across 63,000 villages, has been one of the highlights of this budget. Dr. Sujit Paul, Group CEO at Zota Healthcare Ltd., lauded this initiative and emphasized its potential to transform rural healthcare. He also praised the relief in customs duty for three more cancer medicines and the increased health sector outlay.

"These initiatives will go a long way in bringing quality healthcare into the reach of every Indian citizen, creating vibrant rural communities with adequate infrastructure and opportunities," he said.

Empowerment of Women and MSMEs

The budget has also been well-received for its support of MSMEs and its focus on women's empowerment. Shreedha Singh, CEO & Co-founder of T.A.C – The Ayurveda Co., highlighted the transformative nature of the credit schemes for MSMEs.

Singh noted, "These initiatives will build necessary infrastructure at the grassroots level, paving the way for increased participation from women and the emergence of more female business leaders."

She also appreciated the budget's allocation for the AYUSH Ministry, which she believes will boost domestic growth and position India as a leader in holistic wellness worldwide.

Angel Tax Abolition: A Relief for Startups

A significant move that has been widely appreciated by the startup community is the removal of the angel tax. Kunal Sethi, CEO of The Detailing Mafia, emphasized this decision's potential to boost the confidence of startups.

He commented on the budget's dual focus on revitalizing the manufacturing sector and creating a skilled workforce: "This two-pronged approach could propel India's startup ecosystem and manufacturing base forward."

Boosting the Spacetech Sector

In the realm of spacetech, the budget's provisions have been seen as a strategic thrust to fortify India's position in the global space industry. Chaitanya Dora Surapureddy, CFO & Co-founder of Dhruva Space, praised the allocation of INR 1,000 crore for venture capital funding and the abolition of the angel tax. He highlighted the importance of Viability Gap Funding and streamlined Foreign Direct Investment (FDI) policies in enhancing global competitiveness.

"This support limits financial risks associated with pioneering next-gen products, allowing us to innovate boldly," Surapureddy stated.

Education and Skill Development

Education and skill development have also been central themes of this year's budget. Monica Malhotra Kandhari, Managing Director of AASOKA, expressed her delight over the budget's allocation of ₹1.48 lakh crore towards education, employment, and skilling. She emphasized the importance of initiatives like the ₹10 lakh education loans and the revised Model Skill Loan Scheme in making higher education more accessible.

"These initiatives will help us continue providing engaging and effective learning experiences for K-12 students," Kandhari said.

Echoing similar sentiments, Amit Kapoor, Co-Founder of Eupheus Learning, underscored the budget's focus on skilling the youth and providing education loans as game-changers. He stressed the importance of identifying the right skills within classrooms and creating an enabling environment for in-classroom and at-home learning.

"These measures from the government are a good step forward," Kapoor remarked.

Emphasis on Upskilling

The emphasis on education and upskilling has been widely praised. Ujjwal Singh, Founding CEO of Infinity Learn by Sri Chaitanya, noted the allocation of Rs 1.48 lakh crore as a significant step towards enhancing accessibility and affordability of quality education.

"This investment will empower educators with greater opportunities to ensure ‘Baccha Seekha Ki Nahi’," Singh added.

Environmental Sustainability and Clean-Tech

Environmental sustainability and clean-tech technologies have also been highlighted in this budget. Kushagra Srivastava, Founder & CEO of Chakr Innovations, welcomed the focus on improving air quality and expanding environmental initiatives beyond renewable energy generation.

"Addressing air pollution is crucial to achieving India's economic growth objectives," Srivastava stated.

Agricultural Advancements

Agricultural advancements have not been overlooked either. Archana Sinha, Co-Founder & CEO of Nourishing Schools Foundation, praised the introduction of climate-resilient and horticulture crops. She emphasized the need to enhance the nutritional profiles of crops to revolutionize the agricultural ecosystem without compromising on nutrition.

Comprehensive Economic Growth

Finally, the budget's comprehensive approach towards sustainable economic growth has been appreciated across various sectors. Jaikaran Chandock, Director of Balu Forge Industries Ltd., praised the budget for laying the foundation for Viksit Bharat and promoting sustainable economic growth. He highlighted the focus on renewable energy transition, infrastructure development, and the defence sector as pivotal for India's high-growth phase.

"The budget ensures that transition benefiting industries across sectors and each segment of society," Chandock concluded.

Overall, the Union Budget 2024-25 has garnered positive feedback from the startup community, with leaders across various sectors expressing optimism about the government's initiatives to foster innovation, empower women, and support sustainable growth.

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