Budget 2025: Govt announces Rs 10,000-crore scheme to fuel startups & innovation

By easing financial constraints, the government aims to empower startups to scale faster, innovate fearlessly, and create high-impact employment opportunities

by e4m Staff
Published: Feb 1, 2025 4:33 PM | 1 min read

Finance Minister Nirmala Sitharaman announced a Rs 10,000-crore 'Funds of Funds' initiative for India's startup ecosystem in the Union Budget 2025 presented on Saturday. The fund will encourage entrepreneurs, drive innovation and accelerate growth for Indian startups across sectors. It will also make India attractive to budding entrepreneurs, create job opportunities and position India as the global hub for innovation and powerhouse for startups.

The government is also looking at improving entrepreneurs’ access to credit. The provision of loans between Rs 10 crore and Rs 20 crore, with a reduced 1% guarantee fee will empower entrepreneurs with seamless access to capital. These loans will focus on 27 key sectors critical to the government’s ‘Atmanirbhar Bharat’ vision of fuelling self-reliance, across industries.

With fewer financial roadblocks, startups can now scale at an unprecedented pace, bringing groundbreaking and innovative ideas to life.

Adding to this momentum, Sitharaman announced a transformative scheme aimed at first-time women entrepreneurs from marginalised communities. This initiative will provide them with the resources and funding necessary to build thriving, sustainable businesses, breaking barriers and accelerating the Indian economy.

With this comprehensive financial and structural support, Indian startups are set to enter a golden era of growth. Backed by government initiatives and funding, they can now focus on expansion, invest in R&D and explore new markets.