BHUBANESWAR: The startups have much to cheer about the announcements made by Union Finance minister Nirmala Sitharaman on Tuesday.
Addressing a long-standing demand, she introduced significant reforms, including abolition of angel tax for all investors, to support small businesses and foster innovation. The tax introduced in 2012 was imposed on funding raised by privately-held companies, including startups, if their valuation exceeded the fair market value, to curb money laundering.
Executive chairman of Startup Odisha Omkar Rai said these measures reflect the government’s commitment to fostering a more vibrant and inclusive economic environment.
“The abolition of the angel tax for all classes of startup investors could be a game-changer for the startup ecosystem. It would ensure much-needed risk capital investments and sustained financial flow to the startup ecosystem,” he said.
The enhancement of the MUDRA loan limit from Rs 10 lakh to Rs 20 lakh would provide greater financial support to micro and small enterprises, helping them scale up their operations and contribute more effectively to economic growth by creating wealth and jobs, Rai observed.
With provisions like the revised model skill loan scheme, focus on skilling 20 lakh individuals, and modernising 1,000 industrial training institutes, the budget ensures that the industries get the skilled manpower that is intricately aligned with their requirements.
“These initiatives will empower businesses, drive innovation and strengthen India’s position in the global market,” said serial entrepreneur Sakyasingha Mahapatra.