India pledges fresh billion for startups


India announced a new $1.15 billion Fund of Funds for startups on Saturday while unveiling sweeping regulatory reforms and an ambitious nuclear energy program, as New Delhi seeks to boost tech innovation and clean energy in the world’s fifth-largest economy.

Finance Minister Nirmala Sitharaman, presenting the federal budget for 2025-26, said the fund builds on earlier startup funding programs that have already deployed more than $1 billion from alternate investment funds. The new fund will have an “expanded scope” compared to previous initiatives, though specific focus areas weren’t detailed in the budget.

She also outlined plans for a High-Level Committee for Regulatory Reforms that will review all non-financial sector regulations, certifications, licenses and permissions within a year. The initiative aims to strengthen “trust-based economic governance” and ease compliance burdens for startups and technology companies, she said.

New Delhi will explore creating a separate Deep Tech Fund of Funds to catalyze next-generation startups working on advanced technologies, part of a broader push to strengthen India’s position in emerging tech sectors.

These measures come as India’s startup ecosystem emerges as a large jobs creator and a source of pride for the country, whose broader economy is projected to grow between 6.3% and 6.8% in the coming year. The government is betting on innovation and entrepreneurship to help achieve its longer-term goal of 8% growth needed to create adequate jobs for its young population.

India startups have attracted over $100 billion in the past decade from investors including Norges, SoftBank, Sequoia, Accel, Tiger Global, General Catalyst, and General Atlantic. Home to over 100 unicorn startups, India has also cemented its place as perhaps the last great growth market for Silicon Valley giants.

“The first fund done a few years ago gave a huge fillip to the Indian venture capital industry,” said Sanjeev Bikhchandani, a high-profile investor who is among the earliest backers of Zomato and Policybazaar. “Dozens of Indian VC funds got set up providing risk capital to hundreds of startups. India needs domestic venture capital.”

The government also announced a $2.3 billion Nuclear Energy Mission aimed at developing at least five indigenous small modular reactors by 2033. The program is part of India’s goal to achieve 100 gigawatts of nuclear energy capacity by 2047, with planned amendments to the Atomic Energy Act to enable private sector participation.

“We are determined to ensure that our regulations keep up with technological innovations and global policy developments,” Sitharaman said in her budget speech, announcing plans to decriminalize more than 100 provisions across various laws through a new Jan Vishwas Bill 2.0.

The government also extended tax benefits for startups by five years, allowing companies incorporated before April 2030 to claim certain deductions. For startups in 27 sectors deemed crucial for India’s self-reliance goals, the government reduced guarantee fees to 1% while doubling their credit guarantee limit to $230,000.

A new scheme targeting 500,000 first-time entrepreneurs, particularly women and those from scheduled castes and tribes, will provide term loans up to $24,000 over the next five years. The program builds on lessons from the existing Stand-Up India scheme, the minister said, aiming to broaden the startup ecosystem’s reach.

To boost innovation in electronics manufacturing, a key focus area for tech startups, the government introduced a presumptive taxation scheme for non-residents involved in establishing manufacturing facilities. The budget also proposes “BharatTradeNet,” a unified platform for trade documentation and financing solutions that could benefit fintech startups.



Source link

  • Related Posts

    Death of OpenAI whistleblower deemed suicide in new autopsy report

    Suchir Balaji, a former OpenAI employee, was found dead in his San Francisco apartment on Nov. 26; on Friday, the city’s medical examiner ruled his death a suicide, countering suspicions…

    DeepSeek founder Liang Wenfeng is reportedly set to meet with China’s Xi Jinping

    Chinese AI startup DeepSeek founder Liang Wenfeng is reportedly set to meet with China’s top politicians, including Chinese leader Xi Jinping, during a summit that Alibaba founder Jack Ma is…

    You Missed

    Logo For 2025 NFL Draft In Green Bay Revealed – SportsLogos.Net News

    • By admin
    • February 17, 2025
    • 2 views
    Logo For 2025 NFL Draft In Green Bay Revealed – SportsLogos.Net News

    Brooke Scheller – Why Even ‘Moderate’ Drinking Is Harming Your Health

    • By admin
    • February 17, 2025
    • 1 views
    Brooke Scheller – Why Even ‘Moderate’ Drinking Is Harming Your Health

    Getting Started Strong In Avowed And More Gaming Tips

    • By admin
    • February 16, 2025
    • 2 views
    Getting Started Strong In Avowed And More Gaming Tips

    Death of OpenAI whistleblower deemed suicide in new autopsy report

    • By admin
    • February 16, 2025
    • 3 views
    Death of OpenAI whistleblower deemed suicide in new autopsy report

    Why Plant-Based Dairy Alternatives Cannot Compare to Cow’s Milk

    • By admin
    • February 16, 2025
    • 5 views
    Why Plant-Based Dairy Alternatives Cannot Compare to Cow’s Milk

    IRS will lay off thousands of probationary workers as soon as next week — in the middle of tax season

    • By admin
    • February 15, 2025
    • 5 views
    IRS will lay off thousands of probationary workers as soon as next week — in the middle of tax season