Technology

Driving Innovation and Growth in the Technology and Startup Ecosystem in Union Budget 2024-2025

The Union Budget 2024 has introduced several measures aimed at bolstering the technology and startup ecosystem in India. With a focus on innovation, research, and support for startups, the budget sets the stage for significant advancements in this dynamic sector.

Sourabh Deorah, CEO & Co-founder, AdvantageClub.ai, highlighted the budget’s impact on startups and innovation, “Today’s Budget announcement about abolishing the angel tax for all classes of investors will significantly boost growth and create a more supportive environment for angel investments in startups. This should help reduce the stress in the market for early stage startups. With increased R&D investments, there will be creation of newer industries and more job opportunities that will ultimately benefit the entire startup ecosystem and position India as a global innovation hub. Also, the changes in tax slabs along with increased standard deduction brings much-needed relief to salaried individuals, enhancing their disposable income and overall economic well-being. Additionally, it’s encouraging to see a strong focus on youth empowerment with internship opportunities for 1 crore young people across 500 companies and one-month wage support for all first-time formal job entrants. At AdvantageClub.ai, I have Innovation always advocated for hiring fresh talent. Modi 3.0’s top nine priorities will generate ample opportunities for Indians and transform India for a brighter future.”

Mr. Sumit Gupta, Co-founder, CoinDCX, expressed optimism Innovation about the budget’s support for the tech startup ecosystem, “CoinDCX welcomes the Finance Minister’s announcement in today’s budget regarding the abolition of the Angel tax for all classes of investors. We are confident that this will significantly bolster the Indian tech start-up ecosystem, especially in the Web3 sector. India stands at the forefront of the global Web3 ecosystem with a network of over 1,000 startups spanning diverse sectors. Collectively, these Indian Web3 startups have secured funding exceeding $2.5 billion, reflecting the landscape’s robust growth and investment potential. In 2023, Indian Web3 projects secured approximately $270 million in funding. These figures indicate investors’ interest in the region’s early-stage Web3 innovation. As Web3 becomes more mainstream, investment in Web3 startups is expected to increase. The abolition of the Angel tax will definitely benefit Indian founders, especially those leading early-stage Web3 companies in India. For investors, we had anticipated some relaxation to the taxation framework in this budget. We will continue to push for rationalization of the taxation framework which includes reducing the TDS to 0.01%, allowing setoff of losses on VDA transactions and modifying the 30% tax on capital gains. We have submitted data-backed quantitative analyses on the flight of capital and users, and the potential increase in government revenue should the taxation structure be revised. We are hopeful that the government will consider our requests and that we will see changes in the future.”

Mr. Navneet Ahluwalia, Head of Division, Human Resources & Administration, FUJIFILM India, praised the budget’s emphasis on skilling and innovation, “We applaud the 2024-25 Union Budget for its forward-thinking approach to education, skill development, and promoting women-led development. The introduction of the internship opportunity scheme is commendable, significantly enhancing youth skills and motivation, and bridging the gap between academic learning and real-world application. The substantial allocation for AI-enabled learning demonstrates a strong commitment to innovation, transforming traditional methods and ensuring students are prepared for a tech-driven future. Additionally, several employment schemes are set to boost skill development. Scheme A offers one month’s wage to new workforce entrants across all sectors. Scheme B incentivizes additional employment in manufacturing, directly benefiting employees and employers with EPFO contributions, expected to aid 30 lakh youth. Scheme C covers additional employment in all sectors, with the government reimbursing employers up to Rs 3,000 monthly for two years per additional employee, aiming to create 50 lakh jobs. The Budget’s allocation of over Rs 3 lakh crore for schemes benefiting women and girls underscores the government’s commitment to enhancing women’s roles in economic development. The establishment of working women hostels, collaboration with industries for creches, and women-specific skilling programs promote higher workforce participation. These initiatives ensure a supportive environment for women, fostering empowerment and economic independence. With Rs 1.48 lakh crore dedicated to education, employment, and skilling, the budget reflects a comprehensive approach to building a robust educational infrastructure. This investment will improve education quality, expand learning access, and foster skill development nationwide. By prioritizing skilling and promoting women’s participation, the government is equipping youth and women with the tools needed to succeed in a rapidly evolving job market. Overall, the 2024-25 Union Budget paves the way for a brighter, more skilled future for our youth and a more inclusive, empowered future for women, ensuring they are well-prepared to meet the demands of a dynamic and competitive world.”
The article was curated by Prittle Prattle News as an industry story.
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