Budget 2024 | IAN Group Leads the Way: Angel Tax Abolished—A New Era for Indian Startups
We are thrilled to share a groundbreaking update from today’s Indian budget—the abolition of Angel Tax. IAN Group has been at the forefront of this advocacy from day one, and Finance Minister Nirmala Sitharaman’s announcement marks a significant victory for India’s startup ecosystem. This historic change is set to enhance innovation, attract investments, and address industry challenges amid the 2023 funding slump.
For more details, you can read the full announcement here.
Our co-founder, Dr. Saurabh Srivastava, has shared his thoughts on this monumental change:
“Abolishing Angel Tax is the single biggest gift that the Finance Minister could have given to Indian startups. Kudos to all who made it happen, especially DPIIT, which led it from the front. This will completely transform the startup landscape and the ecosystem will now see explosive growth, moving from a hundred thousand to a million startups in the next 5 years. Both domestic and foreign investors would now see no financial barriers and more freedom to support Indian start-ups and investments in innovative startups will explode, leading to economic growth and massive employment, while solving India’s many challenges in healthcare, agriculture, education, environment, etc. This will now unleash Indian startups to conquer the world.
I was part of a Government Committee on Creating a Vibrant Entrepreneurial Ecosystem when, paradoxically, the Angel Tax was introduced in 2012. Since then IAN has worked tirelessly to have this tax revoked, along with others. I have lost count of the number of meetings at all levels of government that Padmaja and I have done over the years, the various recommendations put forward, etc. But just when we were losing hope, the government has delivered.”
Venture capital investors believe that abolishing the Angel Tax will encourage more Indian startups to move back to India and boost innovation in the country’s rapidly growing startup ecosystem.
This is a momentous occasion for all of us, and we look forward to the unprecedented growth and opportunities this change will bring to our ecosystem.
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