Team Startupcity

The Indian startup ecosystem is eagerly waiting for the Union Budget – 2024. Between the falling graph of funding and subtle gestures of investors, angels and venture capitalists, Startups and entrepreneurs in India are seeking the upcoming Union Budget as a Shimmering Light and expecting a more favorable startup environment with improved tax measures for startups.

As per the media sources, Finance Minister Nirmala Sitharaman-led Union Budget 2024 is probably scheduled to be held on today 23rd July. This budget holds a historic impact as this will be the first Union Budget after Narendra Modi’s Third term. Ahead of the Budget day, the expectations are running high for the startups such as reducing the angel tax and launching various innovative initiatives, schemes to amplify the in-country investments, and simplify the norms in taxations. Through the budget, the Indian Government will review the state of the economy over the past year.

So here in this article, get ready to witness the hopes, expectations, and demands from startups, investors, and entrepreneurs across key sectors and informative insights of industry experts.

“This Budget is an important budget for Amrit Kaal. Today's budget will decide the direction for the next 5 years of our term. This budget will also become a strong foundation of our dream of Viksit Bharat”. - Narendra Modi.

Mini Economic Survey

The economic survey which took place in January said that India will reach a $7 trillion economy by 2030. The report bears the explanation of CEA Nageswaran, who highlighted that it is the fourth year after COVID-19, where the Indian Economy has witnessed progress with 7% growth.

He highlighted that, the inclination towards AI will deeply affect the employment sector, and it will alleviate the cost competitiveness, which will be enjoyed by those countries exporting digital services.

Expectations of Startups from Key Sectors

This union budget will pave the way for the startups to prosper with the policies, initiatives, and supportive schemes by the government. The technology startups in India are getting more excited to witness the Rs.1 trillion worth Deeptech fund for startups as the industry experts have given a hint on proposing this scheme in the upcoming budget.

UNION BUDGET is not just about seeking funding support from the government; it is also about fueling the flames of evolution that have all the power and potentiality to revolutionize the industries and determine economic growth to lead the country towards a BRIGHT FUTURE

If this scheme is implemented successfully, the deeptech startups are likely to get cumulative investments for the research and development sector across the country. Also, the drone startups extend their expectations on bringing PLI schemes for drones, simplifying the regulations, and approval process for drone operations, particularly to improve the urban air mobility solutions.

Agnishwar Jayaprakash, Founder & CEO, Garuda Aerospace says, “In anticipation of Budget 2024, the drone industry hopes for a boost with reduced interest rates on drone loans and a decreased GST for both drone sales and service”.

Despite being the second largest market in the world next to China with 442 million gamers, Gaming industry of India has been struggling with the latest 28 percent blanket GST – Goods and Services Tax for Online gaming. Eyeing this, the startups in the gaming industry are looking forward to an advanced taxation system and long-term clarity on taxes. In addition, Gaming startups are expecting specialized fund allocations for animation, comics, and visual effects focused gaming startups.

“A clarity on the GST will help drive the next phase of growth, provide a conducive business environment, and also revive investor confidence in the sector”, - Roland Landers, Chief Executive Officer, All India Gaming Federation.

Similarly in the mobility sector, startups are projecting an additional financial sum for the Central Government’s flagship EV incentive initiative ‘FAME’ – Faster Adoption and Manufacturing of Electric Vehicles. For its third term, startups are reportedly expecting a huge funding summation of Rs.10, 000 crore approximately. Industrial experts noted that the EV industry is tremendously hoping on incentives and support from the government for extensive innovation.

In the meantime, Edtech startups persisted to escalate their periodic demand to minimize the GST tax on edtech solutions and services. Also the edtech system is requesting the government to craft a strategic GST policy for tax repayments and fund allotments for government accelerator programmes and partnership initiatives to foster the relationship with the Union.