Union Budget 2025 marks a pivotal step towards inclusive growth! With ₹2 Cr term loans and capacity-building for first-time women entrepreneurs and SC & ST entrepreneurs, India is fostering financial empowerment, education, and entrepreneurship. This visionary move strengthens…
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The Indian government has announced a Rs 10,000 crore fund of funds in the Budget 2025 to boost the startup ecosystem in the country. This financial commitment aims to accelerate the growth of Indian startups, which have already seen a vibrant funding environment. In the past week, 30 Indian startups raised $248.87 million.
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The Fund of Funds for Startups (FFS) will be managed by the Small Industries Development Bank of India (SIDBI) under the guidance of the Department for Promotion of Industry and Internal Trade (DPIIT). The initiative is part of the government’s strategy to encourage domestic investment and innovation within the 14th and 15th Finance Commission cycles. Since the launch of Startup India in 2016, the Indian startup ecosystem has grown substantially, contributing to the economy and job creation.
The scheme aims to provide financial support and create a robust innovation and startup infrastructure across various sectors.
Budget 2025 Impact on Credit Cards: Expansion of credit guarantee scheme and new funding options for startups and MSMEshttps://t.co/LwxfHgaulr
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The government is also developing new schemes under its export promotion mission to support Micro, Small, and Medium Enterprises (MSME) exporters.
Boosting India’s startup ecosystem
The schemes will focus on easing access to global markets, providing financial assistance, and offering technical support. They will address challenges faced by MSME exporters, such as high logistical costs and compliance with international trade norms.
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The export promotion mission is part of a broader strategy to enhance the country’s overall export performance and ensure inclusive economic growth.
It will likely include collaborations with international trade bodies, capacity-building workshops, and setting up export facilitation centers. The Pune business community welcomed the Union Budget 2025-26, terming it a strategic step towards strengthening India’s startup ecosystem. They viewed the budget as a forward-looking, balanced approach toward economic growth, innovation, and sustainability.
Milind Kamble, founder of the Dalit Indian Chamber of Commerce and Industry (DICCI), remarked, “We are very happy to welcome this initiative by the Finance Minister to draw lessons from the Startup India scheme to create five lakh women entrepreneurs by empowering them with loans of up to Rs 2 crore for the next five years.”
Niharika Kolte Alekar, founder of Volar Alta, highlighted the encouraging provisions for startups, saying, “The Rs 10,000 crore Fund of Funds and extended tax benefits under Section 80-IAC, combined with an increased outlay under the credit guarantee scheme, will provide much-needed financial relief, enabling startups to focus on scaling and R&D without immediate profitability pressures.”
Vipul Joshi, founder and CEO of Boostmychild, said, “The latest budget is a big step forward for India’s startup ecosystem. With increased support for early-stage startups, tax benefits, and a stronger push for digital infrastructure, it’s clear that the government recognises the role of innovation in shaping the future.”
Nilesh Bajaj, CEO of Vayve Mobility, noted, “A major highlight is the personal Income-Tax relief, which will significantly increase disposable income for the middle class, driving consumer spending across industries, including the electric vehicle (EV) sector. The strong push for startups and innovation, particularly through the Rs 10,000 crore Fund of Funds for startups and the Deep Tech Fund of Funds, will enable developments in EV technology, battery advancements, and renewable energy.”
