Recently, Finance Minister Nirmala Sitharaman announced the 2024 Budget, focusing on fostering economic growth, supporting innovation, and enhancing infrastructure development. Here are the five key highlights of the budget:
1. Rs 1,000 Crore Fund for Spacetech Startups
One of the standout announcements in this year’s budget is the allocation of Rs 1,000 crore to support space tech startups. This substantial fund is aimed at driving innovation and encouraging private sector participation in space exploration. The initiative is expected to significantly boost India’s spacetech industry, positioning the country as a leader in the global space economy.
2. Abolition of Angel Tax
In a move that promises to stimulate the startup ecosystem, the government has abolished the 30% angel tax on investments. This decision simplifies the process for startups to attract funding and makes it easier for investors to support new ventures. By removing this tax, the budget aims to stimulate economic growth and encourage the development of innovative startups across India.
3. Uniform Long-Term Capital Gains (LTCG) Tax
The budget introduces a standardised LTCG tax rate of 12.5% for financial assets, down from the previous 20% for stocks of unlisted companies. This simplification of the tax structure is designed to make the investment environment more investor-friendly, thereby attracting more capital into the financial markets and fostering a robust investment ecosystem.
4. Focus on Infrastructure Development
Significant investments have been allocated to infrastructure projects, including roads, railways, and urban development. The budget provides ₹11.11 lakh crore for capital expenditure on infrastructure, highlighting the government’s commitment to boosting economic growth and creating job opportunities. This investment in infrastructure is expected to enhance connectivity, support various sectors, and contribute to India’s long-term economic stability.
5. Increased Budget for Ministry of Electronics and Information Technology (MeitY)
The budget for the Ministry of Electronics and Information Technology has been increased by 52%, totaling INR 21,936 crores. This increase aims to benefit deeptech, AI, and semiconductor industries, supporting technological advancements and positioning India as a global tech leader. The substantial funding is expected to drive innovation and foster growth in these critical sectors.
Conclusion
The 2024 Union Budget, as announced by Finance Minister Nirmala Sitharaman, sets a forward-looking agenda aimed at fostering inclusive growth, enhancing infrastructure, and supporting innovation. By focusing on key areas such as spacetech, startup funding, tax simplification, and technological advancement, the budget aims to create a sustainable and inclusive growth trajectory for India. For startups and investors, these measures offer new opportunities and a more conducive environment for growth and innovation.
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