Union Budget Decoding & Nurturing the Dream of Minicorn to Soon to be Unicorn

About the budget scenario and its impact of startup ecosystem famous startup incubator T-Hub’s CEO Mahankali Srinivas Rao explained, “Budget 2024 marks a significant milestone for the Indian startup ecosystem, with initiatives that will undeniably foster innovation and growth. The abolition of the Angel Tax for all classes of investors is a pivotal move that will create a more supportive environment for angel investments, ultimately benefiting startups and paving the way for India to become a global innovation hub. The establishment of a Rs.1,000 crore venture capital fund dedicated to boosting the space sector is another forward-thinking initiative. This substantial investment will propel growth in the space economy by supporting innovative startups and groundbreaking research, positioning India at the forefront of space technology and exploration.

Moreover, the introduction of the Anusandhan National Research Fund and a financing pool of Rs.1 lakh crore to spur private sector-driven research and innovation is a game-changer. This fund will power basic research and prototype development, driving commercial-scale innovation and enabling startups to bring cutting-edge solutions to the market.”

Anupam Mittal, a famous investor on Shark Tank India and the Founder of People Group, Shaadi.com and more, has highlighted, “The much-dreaded angel tax is officially abolished and startups everywhere are breathing a collective sigh of relief. Further, long-term capital gains tax has been harmonized across private and public companies at 12.5%, making startup investing more attractive."

Bangalore based unicorn manufacturing service provider Zetwerk Co-Founder & CEO Amrit Acharya exclaimed that, “the MSME initiatives taken by the government encompasses a range of measures such as the Credit Guarantee Scheme to facilitate loan approvals, digital footprints for paperless credit evaluation, widened MUDRA scheme limits, expanded TReDS program for augmented working capital, and employment linked incentives designed to accelerate job growth. Besides these efforts, almost 100 cities are now fostering more manufacturing-friendly surroundings through ‘plug and play’ industrial parks”.

About the significant initiatives in Union Budget for improving the quality of education, Renowned Edtech unicorn startup Physics Wallah’s Co-Founder Prateek Maheshwari, said, “I appreciate the Budget 2024 for advancing Viksit Bharat by introducing five new schemes to bridge the skill gap and align course content with industry needs, creating opportunities for EdTech providers. The provision of Rs.10 Lakh loans for students excluded from existing schemes is a positive step towards improving Gross Enrollment Ratios in line with NEP 2020. However, performance-linked funding models, skilling loans, and women-centric policies could further enhance these efforts. Effective budget allocation and coordinated execution among stakeholders are essential for sustained economic growth and maximizing the demographic dividend.”