Tech startup incubator T-Hub CEO Mahankali Srinivas Rao welcomed the Union Budget 2024-25 proposal to abolish angel tax for all classes of investors and setting up of a ₹1,000 crore venture capital fund to expand space economy.
A pivotal move, it is bound to create a more supportive environment for angel investments, benefitting start-ups and paving way for India to become a global innovation hub, he said on the proposed abolition of the angel tax that was introduced about 12 years ago. Mr. Rao said the Budget marks a significant milestone for Indian start-up ecosystem, with initiatives that will undeniably foster innovation and growth. The ₹1,000 crore venture capital fund is another forward-thinking initiative and the investment will propel growth in the space economy by supporting innovative start-ups and ground-breaking research, positioning India at the forefront of space technology and exploration.
The government’s decision to operationalise the Anusandhan National Research Fund and a financing pool of ₹1 lakh crore to spur private sector-driven research and innovation will be a game-changer. The fund will power basic research and prototype development, driving commercial-scale innovation and enabling start-ups to bring cutting-edge solutions to the market, he said in a release.
On the cards
The proposal removing Angel Tax was anticipated and a welcome move for start-ups Indian School of Business (ISB) professor Bhagwan Chowdhry said. “The Union Budget did not offer big surprises, but a positive way of looking at it is that a few good initiatives that we expected came through. A focus on job growth by providing incentives to the private sector is welcome... focus on skilling is also essential,” he said in a release.
