Women entrepreneurship, Angel Tax abolition to boost startups: Eco Survey

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Women are key beneficiaries of initiatives designed to foster entrepreneurship in India; 73,151 startups with at least one woman director recognised under Startup India
Women entrepreneurship, Angel Tax abolition to boost startups: Eco Survey
The Economic Survey says ₹3,107.11 crore has been invested in 149 women-led startups through AIFs. Credits: Amit Sharma

The Economic Survey states that the two biggest measures -- the abolition of the Angel Tax and the fostering of women entrepreneurship -- will give a much-needed boost to the startup ecosystem in India. The Economic Survey 2024-25, which was tabled in Parliament ahead of Budget 2025 today, says the abolition of the Angel Tax on investments made by investors in startups is expected to boost the country’s global innovation and entrepreneurial competitiveness.

"Expanding the scope of safe harbour rules and streamlining transfer pricing assessment procedures are expected to make the country’s transfer pricing regime more attractive and competitive, boost IT exports, and ease business for Global Capability Centres and the IT services industry," states the Economic Survey 2024-25.

Other reforms include the abolition of the 2% equalisation levy, reduction in tax deduction at source on payment made by e-commerce operators to e-commerce participants, relief from GST on data centre exports, reduction of the rate of tax collection at source to be collected by e-commerce operators, etc.

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Additionally, women have been key beneficiaries of various initiatives designed to foster entrepreneurship in India. "As of 31 October 2024, a total number of 73,151 startups with at least one woman director have been recognised under the Startup India Initiative. This represents nearly half of the 1,52,139 start-ups supported by the government. ₹3,107.11 crore has been invested in 149 women-led startups through Alternative Investment Funds (AIFs)."

Since its inception in April 2021, the Start-up India Seed Fund Scheme (SISFS) has approved ₹227.12 crore in funding for 1,278 women-led startups. Credit Guarantee Scheme for startups (CGSS) has guaranteed ₹24.6 crore in loans for women-led ventures. The Survey says: "These programmes offer women entrepreneurs financial support, training, and mentorship, empowering them to start and scale their businesses."

Initiatives such as Mudra Yojana, Skill India, Start-Up India, and Stand-Up India have played a pivotal role in fostering entrepreneurship, providing skill training, and supporting individuals in creating self-reliant and sustainable livelihoods. "This ecosystem of support reflects the growing emphasis on empowering individuals to chart their professional paths."

Additionally, the Survey says the Indian IT/ ITeS industry has a leading position globally and it is a significant contributor to the growth of exports. According to NASSCOM Strategic Review Report 2024, India’s tech industry demonstrated extraordinary resilience in FY24, amid macro pressures and geopolitical tensions. The industry has estimated revenues of $254 billion, marking a 3.8 per cent YoY growth in FY24 (excluding e-commerce). Tech exports reached nearly $200 billion, reflecting a growth of 3.3%, while the domestic market is expected to expand by 5.9 per cent, crossing $54 billion in FY24.

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