AUGUST 20249serves as a MSME clusters where the MSMEs can get enhanced funding and external loans to kick-start & bolster their new ventures.Naveen Tewari, Founder & CEO of InMobi Group, responds to the Union Budget-"I wholeheartedly congratulate the government on presenting a visionary and forward-looking budget. The comprehensive focus on MSMEs, technology innovation, and skilling programs reflects a deep understanding of the current and future needs of our nation. The last ten years, we focused on building infrastructure and ensuring last mile connectivity. The next ten have to be about improving access, skilling and supporting small businesses. The public investment in DPI and incentivizing states to digitalize mark significant strides towards becoming a knowledge economy and ushering in India's techade. Additionally, the improved data governance measures and easing of Safe Harbor and transfer pricing assessments will enhance ease of doing business, fostering a robust ecosystem for innovation and growth.We particularly commend the focus on women, youth, farmers, and the underprivileged, aligning with our mission to leverage technology for inclusive development and making it a force for good. This budget not only addresses immediate economic challenges but also sets a strong foundation for sustainable development, making India a global leader in technology and digital transformation. We at InMobi, are truly excited about the opportunities this budget presents and are committed to leveraging these initiatives and supporting the government to drive growth, innovation, and inclusive development leaving the planet better than we found it."Reduction in Corporate TaxAs expected and requested by all communities in the startups and investor ecosystem in India, in the union budget 2024-25, Finance Minister Nirmala Sitharaman abolished the angel tax for all categories of investors under section 56(2) VII B of the Income Tax Act. This has evoked ray of hope among startupreneurs. Sitharaman also noted that the corporate tax on foreign firms will decreased to 35 percent. For reference, the Angel Tax for startups was first launched by the former finance minister Pranab Mukherjee under the regime of UPA-II to examine the dryness of funds in the market. Mayuresh Raut, Managing Partner, Seafund put across her view on Union Budget 2024,"This was an albatross that hindered much needed capital to be deployed to deserving founders. Removal of this dreaded tax will give a huge fillip to startups in the country and free up investors to focus on the investments without having anxiety on how to deal with their implications. A few other things that work well for deep tech focused funds like us. The rooftop solar policy, the pumped storage policy and research and development for small & modular nuclear reactors, Bharat small reactors, R&D for small modular reactors, R&D for new technology in nuclear form a neat troika to alter the energy map of India. Especially on the nuclear side, it positions India to replicate the renaissance that nuclear is experiencing in the US".Boosting the Country's Space SectorThe space-tech startups got green flag from Finance Minister, she informed that the government of India will launch a venture capital fund worth over Rs.1000 crore to amplify the space sector of India. This momentous funding initiative signifies the government's target of fueling the growth flame in the space sector and economy through nurturing inventive startups and research based activities into the ground. The fund is expected to stimulate advancements in space technology, enhance India's position in the global space industry, and encourage private sector participation in space exploration and commercialization. The funding initiative is projected to motivate the investments, stimulate the participation of private players in the space tech and intensify India's global rank in space sector.Anil Joshi, Managing Partner, Unicorn India Ventures, expresses his excitement for the upcoming change, "The 1000 crore fund of funds for space tech is testimonial to India's capability in coming up with breakthrough solutions at low cost. This will certainly help space tech companies to look for much needed early stage capital to get started. This will certainly help mobilize over Rs.4000 Cr, great move. Angel Tax abolishment was long pending, glad that Hon. FM has heard industry voices and has finally abolished it. This will certainly help in expansion of angel investment in India and will take away a lot of burden from the minds of everyone on tax notice for tax paid investment. This will also free up a lot of domestic capital and improve the funding sentiment in a strong way".SC COLUMN
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