New Delhi, July 23, 2024 — Finance Minister Nirmala Sitharaman unveiled the Union Budget 2024-2025 today, highlighting several measures aimed at bolstering India’s startup ecosystem and fostering innovation-driven growth.
Key Highlights for Startups:
- Innovation and Research: The budget emphasizes innovation with increased funding and support for research and development. Specific initiatives include grants and incentives for startups engaged in cutting-edge technologies.
- Capital Access: To enhance access to capital, the budget proposes easing regulations and enhancing the availability of venture capital for startups. This includes reforms to facilitate easier exit mechanisms and listing norms.
- Tax Incentives: Startups are set to benefit from revised tax structures aimed at reducing the compliance burden and promoting investment. Tax holidays and exemptions on capital gains are among the measures announced to encourage entrepreneurship.
- Skill Development: The budget allocates resources for upskilling and reskilling programs tailored for startups and technology-driven enterprises. This aims to equip the workforce with the necessary skills to thrive in a digital economy.
- Infrastructure Support: Infrastructure development includes the establishment of startup hubs and incubation centers across the country. These hubs will provide essential support services and facilities to nurture early-stage startups.
- Export Promotion: Startups focused on export-oriented activities will benefit from initiatives aimed at easing regulatory hurdles and providing financial support through schemes like the E-Commerce Export Hubs.
- Digital Economy: The budget outlines measures to strengthen the digital ecosystem, including incentives for startups leveraging digital technologies such as AI, blockchain, and IoT. This includes funding for pilot projects and innovation labs.
- Sectoral Focus: Specific sectors such as healthcare, education technology (EdTech), agritech, and fintech receive targeted support through dedicated funding and regulatory reforms to spur innovation and growth.
With these measures, the Union Budget 2024-2025 reaffirms the government’s commitment to nurturing a vibrant startup ecosystem in India. By focusing on innovation, capital access, and supportive infrastructure, the budget aims to propel startups towards sustainable growth and global competitiveness.
