The Union Budget 2025 has introduced innovative policies to boost economic growth, empower rural communities, and promote innovation. These reforms are intended to lay a solid foundation for India's ambitions to lead the world in technology, entrepreneurship, and inclusive development.
Boosting Startups with a Rs 10,000 Crore Fund of Funds
The announcement of a Rs 10,000 crore Fund of Funds marks a significant milestone for India's startup ecosystem, which remains critical to economic transformation.
"The ₹10,000 crore Fund of Funds is a big step forward for India's startup scene. Besides increasing support for early-stage businesses, it also indicates how confident the government is in the Indian startup ecosystem's capacity for expansion. At YourNest, we believe that access to capital is key to fostering innovation, and this fund will give Indian business owners more opportunities to expand globally. We are excited to see how this program accelerates the expansion of startups, especially in deeptech and innovation-driven industries”, said Girish Hirde, Global Delivery Head at InfoVision.
"In light of the Budget 2025 announcements, I am excited about the substantial changes in the income tax structure. Exempting individuals earning up to ₹12 lakh from income tax is a transformative move for the middle class, providing significant financial relief and encouraging increased consumption in the economy. This initiative not only eases the burden on families but also creates a favourable environment for economic growth. Additionally, the ₹10,000 crore Fund of Funds for startups and extended 100% tax deductions under Section 80-IAC will fuel entrepreneurship and job creation. I commend the government for prioritizing the middle class and startups and look forward to witnessing the positive effects of these reforms in our communities”, Adrija Agarwal, Vice president and Business Developer, Sattva Group.
Building Up National Deep Tech and AI Capabilities
The emphasis on innovation-driven industries, such as deeptech, is expected to accelerate startup growth. The government's commitment to fostering innovation is demonstrated by the establishment of Centers of Excellence for AI in Education, a Rs 10,000 crore investment in deep tech and research projects, and the 10,000 fellowships available under the PM Research Fellowship Scheme.
"We appreciate the Union Budget 2025 announcement and believe that it balances that aspirational, futuristic growth with overall infrastructure development in the nation. The announcement of a Deeptech Fund of Funds to support technological advancements, while providing 10,000 Fellowships for tech research in IITs and IISc, under the PM Research Fellowship Scheme, is going to play a pivotal role in building national capabilities in the field of Deeptech & research. This, coupled with the establishment of Centre of Excellence for AI in Education, established with an outlay of INR 500 CR will prove to be another significant boost for indigenous capabilities and prowess. At InfoVision, we commend these developments and look forward to supporting India’s evolution as a global leader in Deeptech & AI.-- said Girish Hirde, Global Delivery Head at InfoVision
Empowering Rural India: Bridging the Financial Gaps for Women and MSMEs
The budget prioritizes rural empowerment, particularly for women entrepreneurs and self-help group (SHG) members, through the implementation of a 'Grameen Credit Score' framework. This initiative will allow financial institutions to more effectively assess creditworthiness, even for people with no formal credit histories.
"The Union Budget 2025 brings a significant shift in empowering rural India, particularly women entrepreneurs and SHG members. With the introduction of the 'Grameen Credit Score' framework, financial institutions will now be able to assess creditworthiness more effectively, even for individuals without formal credit histories. Coupled with the launch of customized credit cards for micro enterprises with a ₹5 lakh limit, and the issuance of 10 lakh such cards in the first year, these measures will provide much-needed financial support to the heart of India’s economy. MSMEs, which contribute nearly 30% to India's GDP and employ more than 11 crore people, will now have the means to expand, driving growth in sectors vital to our GDP. These initiatives will strengthen the SHG model, empower women-led businesses to thrive, and bolster the economic fabric of rural India, advancing Naari Pragati and creating lasting financial independence. In addition, the creation of a High-Level Committee for Regulatory Reforms to review regulations, certifications, licenses, and permissions will strengthen trust-based economic governance and create a more conducive environment for NBFCs to operate efficiently and expand their reach, further fueling financial inclusion”, Dr. HP Singh, CMD, Satin Creditcare Network Limited
The Bottom Line
Union Budget 2025 balances aspirational growth and inclusive development, positioning India to lead the world in entrepreneurship, innovation, and technology. A new era of economic growth and prosperity for all is ushered in by the government's support of startups, rural empowerment, and technological advancements.
