Angel Tax Abolition, Boost For MSMEs, and More: How Modi Govt 3.0 is Striving for Ease of Doing Business

As the Modi government 3.0 marks its first 100 days in power during its third consecutive term, various ministries have highlighted significant achievements aimed at improving the ease of doing business in India. From tax relief to fostering innovation, the government has taken several steps to create a more conducive environment for Indian entrepreneurs and businesses.

One of the most notable moves was the abolition of the 31% Angel Tax, which had been a burden on startups since 2012. In her Union Budget 2024 speech, Finance Minister Nirmala Sitharaman announced the removal of this tax for all classes of investors. “This is aimed at bolstering India’s startup ecosystem, fostering entrepreneurial spirit, and supporting innovation,” she said.

The government also reduced corporate tax for foreign companies from 40% to 35%, making India more competitive on the global stage and an attractive destination for investment.

To further boost innovation, a ₹1,000 crore venture capital fund is being established to support startups in the space sector, helping position India as a leader in the global space economy. The GENESIS (Gen-Next Support for Innovation Startups) program was also approved, with a focus on nurturing startups in Tier-II and Tier-III cities.

Under the National Industrial Corridor Development Program, 12 industrial nodes will be created to provide state-of-the-art facilities for investors, enhancing ease of doing business.

For the MSME sector, the MUDRA loan limit was increased from ₹10 lakh to ₹20 lakh, benefitting traders who have successfully repaid their previous loans. Additionally, the launch of a Credit Guarantee Scheme allows MSMEs to secure loans without collateral, making it easier for them to invest in machinery and expand their operations.

The government is also focused on MSMEs’ access to global markets by developing e-commerce export hubs in PPP (Public-Private Partnership) mode. These hubs will provide export services, helping MSMEs and traditional artisans tap into international opportunities.

Disclaimer: The information provided in this article is based on reports and updates from various sources. Every effort has been made to ensure accuracy and reliability. Readers are encouraged to verify the details independently.