Indore: Startups and technology firms see the proposals in the Union Budget 2025 as transformative for the sector, injecting fresh liquidity and cultivating innovation in the ecosystem.
The government’s robust initiative for m AI Centres of Excellence, digital infrastructure and skill development is anticipated to strengthen the startup ecosystem and assist in cultivating an industry-ready talent pool.
Industry leaders welcomed the announcement of a new round of the Fund of Funds for startups scheme with a Rs 10,000 crore corpus.
Sawan Laddha, secretary, Invest Indore said, “The 2025-26 Budget is a game-changer for Startups and MSMEs, demonstrating the government’s strong commitment to fostering entrepreneurship and innovation. The launch of a new Rs 10,000 crore Fund of Funds for startups, in addition to the existing Rs 91,000 crore commitment, will ensure ample capital availability.”
Industry players said, the introduction of Rs 20 crore unsecured loans for startups and Rs 10 crore loans for MSMEs will provide much-needed liquidity and flexibility to the industry.
“This budget sends a strong, positive message, that India is ready to become a global hub for startups and MSMEs. For all entrepreneurs, this is the moment to scale, innovate and lead the world from India,” said Laddha.
The Finance Minister Nirmala Sitharaman on February 1 announced proposal to extend the deadline for the period of incorporation of startups by five years until April 1, 2030.
The extension will allow startups recognised by the Department for Promotion of Industry and Internal Trade (DPIIT) to avail tax benefits under Section 80-IAC of the Income Tax Act, 1961.
“Budding entrepreneurs and startups rely heavily on equity funding and the initiative by the central government will enhance the availability of funds and financially empower the firms. These measures will fuel consumption, innovation and long-term growth to the sector,” said Rupesh Goyal, an entrepreneur.
