The Union Budget 2024 has received a range of reactions from industry leaders in different fields. Here’s a summary of what key figures from startups, technology, finance, and public infrastructure have to say about the budget’s impact and potential.
Startups and Innovation:
Sandeep Garg, Co-founder & CEO of Blostem, commented:
“The 2024 Budget’s abolition of the Angel Tax is set to create a more supportive environment for angel investments, significantly benefiting the entire startup ecosystem. This removal will facilitate startups in raising funds and investing in their growth, thereby fueling job creation. Additionally, MSME lending through new assessment models based on the digital footprints of MSMEs, rather than relying solely on assets or traditional credit appraisal methods, is expected to spur a new wave of fintech and banking innovation in MSME credit. This approach will help bridge the credit gap in the MSME sector. The government’s focus on creating digital public infrastructure in areas such as e-commerce, health, law, logistics, and lending will further digitize the Indian economy, providing numerous opportunities for startups to innovate.”
Abhinav Jain, Co-Founder & CEO of Almonds AI, noted:
“The Union Budget 2024 has delivered a landmark decision for India’s startup 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 startup 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 startup 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.”
Technology and Digital Infrastructure:
Kesava Reddy, Chief Revenue Officer of E2E Networks Ltd, stated:
“Digital Public Infrastructure (DPI) is crucial for the future of our nation, and we are pleased to see the government taking significant steps in this direction. By integrating AI with DPI, the government will efficiently serve the bottom of the pyramid, ensuring that every citizen is reached in their native language. This initiative marks a transformative era in public service delivery, bringing inclusivity and accessibility to the forefront. We are proud to support this journey of building a new India, Nava Bharat Nirman Yatra, as it paves the way for a more connected and equitable society.”
Uma Shankar Patro, Senior VP – Finance at InfoVision, expressed:
“InfoVision applauds the government’s commitment to advancing innovation and digital transformation with the allocation of 5% of the Universal Services Obligation Fund towards telecommunications technology R&D. The renaming of this fund to Digital Bharat Nidhi highlights the critical role of a digital-first strategy in driving economic growth. We are particularly encouraged by the introduction of the Jan Vishwas Bill 2.0 and the incentives for states to adopt Business Reforms Action Plans and embrace digitalization. These initiatives are set to significantly enhance the ease of doing business and will have a profound positive impact on the IT sector, further strengthening India’s digital economy. InfoVision fully supports these progressive measures and remains dedicated to contributing to and benefiting from these transformative efforts.”
Mobility and Infrastructure
Hiranmay Mallick, CEO of Tummoc, shared:
“The Union Budget 2024 is a significant step forward for the mobility, transit, and startup sectors. I am particularly excited about the investments in rural and urban infrastructure, which will enhance connectivity and reduce congestion. The PM Surya Ghar Muft Bijli Yojana will lower EV charging costs, promoting sustainable mobility. The abolition of the angel tax is a major win for startups, as it encourages investment and innovation. Additionally, the increased allocation for MSMEs and focus on technology support will foster a more robust startup ecosystem. However, increased taxes on certain financial instruments might challenge us. Overall, the budget supports sustainable growth and innovation, setting a positive trajectory for India’s future.”
Finance and Business Environment
Pulak Jain, Co-founder, Chief Business Officer, and Head of Strategy at TransBnk, commented:
“It looks like the budget is quite comprehensive, aiming to cater to various sectors and individuals alike. The mixed reactions suggest there are both positives and negatives depending on the perspective. For individuals, there seem to be some gains alongside certain setbacks. However, the overarching goal appears to be fostering growth for Indian businesses, which is crucial for the economy’s overall health. This focus reflects a strategic approach to ensure sustainable economic development. From the startup ecosystem perspective, steps like abolishing the angel tax will help eliminate a barrier to early-stage investments in startups, encouraging more angel investors to support innovative ventures. Also, lowering corporate tax rates for foreign companies makes India a more attractive destination for foreign direct investment (FDI). This can lead to increased investments in various sectors such as manufacturing, services, infrastructure, etc. Higher investments can spur economic growth, create jobs, and improve overall business environment competitiveness.”
Public and Digital Services
Manoj Shenoy, CEO of BugleRock Capital, observed:
“The Union Budget 2024 has laid the foundation for attracting significant institutional investments across sectors, including start-ups, real estate and technology companies, through the abolition of angel tax, which has been a long-standing demand of the sector. Overall, a neutral budget from capital market perspective with fiscal prudence is needed.”
Dr. Abhay Kaushik, Managing Director of The Brand Story, observed:
“The latest budget underscores the government’s commitment to economic stability and growth. With significant allocations for infrastructure development, healthcare, and education, the budget aims to bolster the country’s long-term economic prospects. By focusing on sustainable growth and inclusive development, it seeks to address the pressing needs of various sectors while ensuring a balanced fiscal approach.”
FMCG Sector
Neelima Rana George, Head of Coffee Works and Technology at Kelachandra Coffee Ventures, noted:
“While these investments are promising, targeted financial relief for coffee growers dealing with immediate challenges such as rising temperatures and labour shortages would have further bolstered the sector’s growth and stability.”
