Budget 2024: Here's why start-ups and VCs are feeling underwhelmed 

During her interim Budget speech on Thursday, Finance Minister Nirmala Sitharaman highlighted the positive impact of government initiatives such as start-up credit guarantees and the Small Industries Development Bank of India (SIDBI) fund of funds scheme in generating employment opportunities for the country's youth. Referring to these measures as "rozgardata," she emphasized their role in supporting the younger generation.

The Fund of Funds Scheme (FFS), established in 2016 with a corpus of Rs 10,000 crore, aims to boost the Indian startup ecosystem and facilitate access to domestic capital. The scheme channels capital to SEBI-registered daughter funds, which, in turn, invest in growing Indian startups through equity and equity-linked instruments.

However, some stakeholders in the startup ecosystem expressed concerns about the lack of concrete measures for start-ups, founders, and investors in the interim budget. Yagnesh Sanjharka, Founder and CFO of 100X.VC, noted that while the budget highlighted past achievements and macro measures like EV adoption and infrastructure development, there was a missed opportunity to outline specific initiatives and incentives for fostering innovation and entrepreneurship. Sanjharka expressed hope for a more targeted and supportive approach in the upcoming year.

Kajal Malik, Co-founder and CBO at PickMyWork, acknowledged the Interim Budget's limited focus on startup-specific policies but expressed hope for policy reforms to invigorate angel and foreign investments. Malik highlighted the government's commitment with the allocation of a INR 1 lakh crore corpus for interest-free loans and the extension of tax benefits for another year, affirming support for the crucial role startups play in the economy.

Industry players praised the government's commitment to comprehensive and inclusive development through initiatives like PM Mudra Yojana, Fund of Funds, Startup India, and Startup Credit Guarantee Schemes. Madhusudan Ekambaram, Co-founder and CEO of KreditBee, commended the visionary approach and expressed optimism about the proposed measures in the forthcoming Budget 2024. These measures, including tax reductions, specialized support for developing industries, and increased infrastructure spending, are seen as encouraging signs for the future, reflecting a collective effort towards sustainability, growth, and innovation within India's dynamic startup ecosystem.

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