Startups demand angel tax elimination, incentives on investments in budget

Startups in India have high expectations from this year’s upcoming Union Budget. Early-age startups hope for the removal of angel taxes, while health tech startups expect increased funding for the sector.

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Startups function as engines of economic growth, playing a crucial role in generating new jobs, ideas, products, and services.

As of December 2023, the Department for Promotion of Industry and Internal Trade (DPIIT) had recognised 1,17,254 startups. These startups have reportedly created over 12.42 lakh direct jobs, significantly impacting the economy.

Eklavya Gupta, CEO and Co-founder of Recur Club, stated, “We are confident that India’s business credit landscape is on the brink of a major digital overhaul. FinTechs are at the forefront of this change, deploying innovative technologies and utilising in-depth data analytics to streamline and expand credit access.” He added, “While the current allocation of Rs 10,000 crore is an excellent initial step, realising the full capabilities of India’s SME and startup ecosystem will necessitate greater investment, especially in credit guarantee schemes.”