Synopsis
Members of the Startup Policy Forum have hailed the Union Budget as a transformative catalyst for India's economy and startup ecosystem, highlighting key measures that support innovation, consumption, and inclusion.Key Takeaways
- Union Budget is a transformative catalyst for startups.
- Tax relief and enhanced credit access for MSMEs.
- Increased credit guarantee cover for startups.
- Commitments exceeding Rs 91,000 crore for AIFs.
- Government support fosters new business opportunities.
New Delhi, Feb 3 (NationPress) The Union Budget is a “transformative catalyst” for India’s economy and startup landscape, stated members of the Startup Policy Forum (SPF) on Monday.
This Budget features several significant measures including tax relief for the middle class, improved credit access for MSMEs, and a dedicated fund of funds for startups.
Startup founders emphasized that the Budget’s bold initiatives will spur innovation, enhance consumption, and foster inclusion, positioning India as a global economic leader in the 21st century.
“Revised income tax thresholds could lead to a substantial increase in Gen Z spending,” remarked Kunal Shah, Founder of CRED.
Lalit Keshre, Co-founder and CEO of Groww, noted that the updated tax structure will allow the middle class to retain more income, enabling retail investors to invest more in wealth creation.
“This will further enhance the financialization of savings, as retail investors strive to build long-term financial security,” Keshre added.
Startup leaders are optimistic that the government’s backing will generate new prospects for businesses and investors, making India an even more appealing destination for startups.
With over 1.59 lakh startups recognized by the Department for Promotion of Industry and Internal Trade (DPIIT), India has firmly positioned itself as the third-largest startup ecosystem globally.
For startups, the credit guarantee limit will be increased from Rs 10 crore to Rs 20 crore, with the guarantee fee adjusted to 1 percent for loans in 27 focus sectors crucial for Atmanirbhar Bharat.
The Alternate Investment Funds (AIFs) for startups have garnered commitments exceeding Rs 91,000 crore, supported by the Fund of Funds, which includes a government contribution of Rs 10,000 crore.
Ritesh Agarwal, Founder and Group CEO of OYO, stated, “We need to see beyond the Rs 10,000 crore figure - what’s truly exciting isn’t just the capital, but the confidence it brings.”
“Building for India entails empowering both the AI researcher and the small-town entrepreneur. That’s how we cultivate an innovation economy, not merely a startup economy,” he remarked.
Aloke Bajpai, Group CEO of ixigo, expressed satisfaction as the government continues to prioritize the UDAN scheme to improve regional air connectivity, benefitting travelers from tier 2 and 3 cities.
