₹10,000 Crore Fund to Boost Startups in Budget 2025-26

The Union Budget 2025-26 has introduced a ₹10,000 crore fund to support emerging entrepreneurs and startups across India. This initiative, under the "Fund of Funds" (FoF) scheme, aims to increase investments, improve financial accessibility, and enhance business growth.

Key Highlights of the Startup Boost
1.    Expansion of the "Fund of Funds" Scheme
o    The FoF initiative, originally launched in 2016 with an initial ₹10,000 crore, has now been extended with an additional ₹10,000 crore to help startups scale and expand.
o    So far, ₹9,100 crore has already been allocated to startups under the scheme.
2.    Extended Tax Exemptions for Startups
o    Startups registered before April 1, 2030, will now qualify for tax exemptions, extending the previous deadline from April 1, 2025.
o    Eligible startups will receive a 3-year tax holiday within the first 10 years of establishment.
3.    Financial and Policy Support
o    Startups will now have easier access to venture capital and financial backing, helping them secure necessary investments.
o    The government will continue policy and regulatory support to ensure long-term sustainability.
Expected Benefits for Startups
•    Better Financial Liquidity: Startups will have improved access to working capital, enabling them to innovate and expand.
•    Increased Business Stability: Government backing will provide a more stable environment for entrepreneurial growth.
•    Growth in Domestic and International Markets: Startups that meet the criteria set by the Internal Trade Ministry will gain official recognition and benefit from global trade opportunities.