Empowering Startups for India's Growth

In a significant move to bolster India's startup ecosystem, the Finance Minister has announced an additional Rs 10,000 crore allocation to the fund of funds (FoF) dedicated to startups. This initiative underscores the government's recognition of startups as pivotal to India's economic growth, with a special focus on deeptech startups. The impact of emerging technologies, especially AI, on the global stage has made this focus particularly timely.

Budget 2025 Highlights

Among the key highlights of Budget 2025, the extension of the tax holiday scheme for startups until March 2030 stands out. This scheme allows startups to claim a three-year tax holiday within their first ten years of operations, a move that Padmaja Ruparel, co-founder of IAN Group, praises as a testament to the government's commitment to long-term growth and innovation.

Deeptech and Beyond

Prashanth Prakash of Accel highlights the potential of the deeptech FoF to accelerate advancements in critical technologies such as AI, quantum computing, and semiconductor research. This initiative aligns with India's vision to lead on the global innovation curve, ensuring that homegrown startups can compete internationally. Additionally, the grant of 10,000 fellowships under the PM Research Fellowship Scheme to support research at IITs and IISc is expected to contribute significantly to the growth of the deeptech ecosystem.

Strengthening India's Position

Nasscom has lauded the Budget for its measures to advance technology and speed up skill development, including a Rs 20,000 crore allocation for private-sector-led R&D and the establishment of 50,000 Atal Tinkering Labs in government schools. These steps are crucial for strengthening India's position as a global hub of deeptech innovation and a digital talent nation.