The Indian government has presented the new budget for the 2025-26 financial year, which includes reforms and programs aimed at boosting technological innovation and clean energy. Finance Minister Nirmala Sitharaman announced that a new Fund of Funds will be established, building on previous startup financing programs. This fund has already secured over $1 billion from alternative investment sectors.
The new fund will cover a broader range of sectors than previous programs, but the specific focus areas have not yet been clarified. According to the minister, a High-Level Regulatory Reform Committee will also be set up to review various regulations, licenses, and permits over the course of a year. The goal is to reduce the burden on startups and technology companies while strengthening economic governance.
India also plans to establish a separate Deep Technology Fund to support next-generation startups working on advanced technologies. This is a significant step toward strengthening India's position in the technology sector.
India's startup ecosystem has seen tremendous growth in recent years, with the country now home to more than 100 unicorn startups. Additionally, India is one of the fastest-growing markets for Silicon Valley giants. The government has announced a five-year extension of tax benefits for startups, and companies established before 2030 will be eligible for certain tax reductions.
The new initiative will focus on supporting 500,000 new entrepreneurs, particularly women and individuals from certain castes and tribes. These entrepreneurs will be eligible for loans of up to $24,000 over five years. Furthermore, tax incentives have been offered to technology startups to boost innovation in India's electronics manufacturing sector.
The budget also introduces "BharatTradeNet," a new platform for trade documents and financing solutions, which could benefit fintech startups.
