Sreejita Talukdar, Content Writer, siliconindia

Our country is going through a dazzling path holding the hands of startup ecosystem which is not only uplifting the global status, but enhancing its overall resources and economic growth. Startups are anchoring this revolutionary growth with their thriving motivation and unmatched innovative skills. India is the 3rd largest startup ecosystem in the world, having 1,22,000 established startup companies with more than 16,000 startups that are on the verge.

Witnessing this remarkable growth of startup ecosystem, PM Narendra Modi started initiatives like Startup Mahakumbh and Viksit Bharat which are the encouraging roadmap for the young visionaries to stay motivated and be aligned with the recent trends and technologies to grow sooner and better without any fear of funding.

PM Narendra Modi is so impressed about the young minds with their headstrong determined attitude. With his strong unfluctuating belief PM Modi highlighted, “The current and upcoming decade is going to be referred as ‘techade’ of India. The government will usher in massive changes to strengthen innovation, entrepreneurship, and the startup ecosystem.”

Union Budget has a penetrating & widespread impact over the whole nation, as it fixes a goal of our values and aspirations by setting perspective priorities and controls the spending

Key Takeaways of Union Budget for Startup Ecosystem

The Union Budget 2024 also reflected same sort of encouraging spirits for the unprecedented growth of young startups. The recent budget was the first budget in the third term of Modi Government and 7th consecutive budget of Nirmala Sitharaman.

•To safeguard the unwavering spirits of the young entrepreneurs and small businesses, Sitharaman repealed the long-awaited Angel Tax on all asset classes alongside she introduced certain financial instruments in the context of long-term capital gains.

•To stimulate the efficient skillfulness of the space tech startups, a Rs.1000 crore Venture Capital Fund was introduced.

•For MSME sector, she has announced to set-up export hubs to facilitate the access of international markets by micro, small, and medium enterprises (MSMEs) and traditional artisans. These hubs will be established through PPP Public-Private-Partnership model.

•In order to fire up the credit, ecommerce, health, law & justice, logistics, MSME service delivery, and urban governance of population-scale digital public infrastructure (DPI) tools will be developed.

•To facilitate loans without collateral or third-party guarantee, there will be Credit guarantee scheme of government.

•TDS was declined to 0.1% from 1%, Corporate Tax rate declined to 35% from 40%.

•Rules of FDI will be liberalized and simplified to attract the attention of more foreign investors.

•This year 3.4% of India's GDP has been allocated for capital expenditure.