The Union Budget 2024-25 has introduced several key measures aimed at fostering growth and development in India’s startup ecosystem. One of the most significant announcements is the abolition of the Angel Tax. This long-awaited move is expected to provide much-needed relief to startups and encourage early-stage investments.
Reduction in tax rates
Another crucial change is the reduction in tax rates for foreign companies. This is anticipated to attract more foreign investment into the Indian startup landscape, creating a more level playing field for domestic startups. The budget also allocated a substantial fund of Rs. 1000 crore specifically for space startups. This move underscores the government’s commitment to promoting emerging technologies and creating a conducive environment for innovation.
Women Empowerment And Skill development
Additionally, the budget’s emphasis on women’s empowerment and skill development is expected to contribute to the overall growth of the economy, including the startup sector. By increasing women’s participation in the workforce, India can harness a vast pool of talent and drive economic progress.
While the increase in Securities Transaction Tax (STT) on futures and options might impact short-term trading activities, the government’s overall focus on creating a stable and investor-friendly environment is a positive step for the startup ecosystem.
Union Budget Impact
Overall, the Union Budget 2024-25 has introduced several measures that are likely to have a positive impact on India’s startup landscape. The abolition of the Angel Tax, reduction in tax rates for foreign companies, and increased focus on emerging sectors like space technology are key highlights of the budget that will benefit startups and investors alike.
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