𝗨𝗻𝗶𝗼𝗻 𝗕𝘂𝗱𝗴𝗲𝘁 𝟮𝟬𝟮𝟱: 𝗔 𝗚𝗮𝗺𝗲-𝗖𝗵𝗮𝗻𝗴𝗲𝗿 𝗳𝗼𝗿 𝗦𝘁𝗮𝗿𝘁𝘂𝗽𝘀 𝗼𝗿 𝗝𝘂𝘀𝘁 𝗔𝗻𝗼𝘁𝗵𝗲𝗿 𝗣𝗼𝗹𝗶𝗰𝘆 𝗼𝗻 𝗣𝗮𝗽𝗲𝗿?
A few years ago, I advised a startup founder with a brilliant idea but no funding. Despite being eligible for multiple government schemes, by the time approvals came, his startup was out of the game.
Fast forward to 2025, and the government is making big promises for startups. But are these changes truly transformational, or just old policies in new clothes?
𝗟𝗲𝘁’𝘀 𝗯𝗿𝗲𝗮𝗸 𝗶𝘁 𝗱𝗼𝘄𝗻:
1️⃣ ₹𝟭𝟬,𝟬𝟬𝟬 𝗖𝗿𝗼𝗿𝗲 𝗠𝗼𝗿𝗲 𝗳𝗼𝗿 𝗦𝘁𝗮𝗿𝘁𝘂𝗽𝘀 – 𝗕𝘂𝘁 𝗪𝗵𝗲𝗿𝗲’𝘀 𝘁𝗵𝗲 𝗧𝗿𝗮𝗻𝘀𝗽𝗮𝗿𝗲𝗻𝗰𝘆?
The Fund of Funds for Startups managed by SIDBI gets a ₹10,000 crore boost. Sounds great, right?
🔹𝗥𝗲𝗮𝗹𝗶𝘁𝘆 𝗰𝗵𝗲𝗰𝗸: Many startups face red tape accessing these funds. How will the government ensure they reach early-stage founders efficiently?
2️⃣ 𝗗𝗲𝗲𝗽 𝗧𝗲𝗰𝗵 𝗚𝗲𝘁𝘀 𝗮 𝗗𝗲𝗱𝗶𝗰𝗮𝘁𝗲𝗱 𝗙𝘂𝗻𝗱 – 𝗕𝘂𝘁 𝗜𝘀 𝗜𝗻𝗱𝗶𝗮 𝗥𝗲𝗮𝗱𝘆?
The government is planning a new Fund of Funds exclusively for deep tech startups—AI, biotech, quantum computing, and space tech.
🔹 𝗧𝗵𝗲 𝗵𝗶𝗱𝗱𝗲𝗻 𝗰𝗵𝗮𝗹𝗹𝗲𝗻𝗴𝗲: Deep tech startups need more than money—they need long-term capital. Will this fund offer patient investment or just short-term cycles?
3️⃣ 𝗧𝗮𝘅 𝗛𝗼𝗹𝗶𝗱𝗮𝘆 𝗘𝘅𝘁𝗲𝗻𝗱𝗲𝗱 – 𝗕𝘂𝘁 𝗪𝗶𝗹𝗹 𝗜𝘁 𝗕𝗲𝗻𝗲𝗳𝗶𝘁 𝗠𝗼𝘀𝘁 𝗦𝘁𝗮𝗿𝘁𝘂𝗽𝘀?
Startups will now get 100% tax exemption on profits for up to 3 years (extended for another 5 years) (under Section 80-IAC).
🔹 𝗧𝗵𝗲 𝗖𝗮𝘁𝗰𝗵? 90% of startups aren't profitable early on. GST relaxations or payroll tax incentives would have been a better move—benefits that impact cash flow now, not years down.
4️⃣ 𝗦𝗶𝗺𝗽𝗹𝗶𝗳𝘆𝗶𝗻𝗴 𝗖𝗮𝗽𝗶𝘁𝗮𝗹 𝗚𝗮𝗶𝗻𝘀 𝗧𝗮𝘅 – 𝗔 𝗚𝗮𝗺𝗲 𝗖𝗵𝗮𝗻𝗴𝗲𝗿 𝗳𝗼𝗿 𝗜𝗻𝘃𝗲𝘀𝘁𝗼𝗿𝘀?
The government is streamlining capital gains tax for both Indian & foreign investors.
🔹 𝗪𝗵𝘆 𝘁𝗵𝗶𝘀 𝗺𝗮𝘁𝘁𝗲𝗿𝘀: This move could unlock billions and boost India’s startup ecosystem.
5️⃣ 𝗟𝗼𝗮𝗻 𝗟𝗶𝗺𝗶𝘁𝘀 𝗗𝗼𝘂𝗯𝗹𝗲𝗱 – 𝗕𝘂𝘁 𝗔𝗿𝗲 #𝗦𝘁𝗮𝗿𝘁𝘂𝗽𝘀 𝗦𝘁𝗶𝗹𝗹 𝗥𝗶𝘀𝗸𝘆 𝗳𝗼𝗿 𝗕𝗮𝗻𝗸𝘀?
Startups in 27 key sectors can now get loans up to ₹20 crore, with a lower guarantee fee of just 1%.
🔹 𝗔 𝗵𝗶𝗱𝗱𝗲𝗻 𝘄𝗶𝗻? Lower guarantee fees reduce bank risk, potentially easing loan approvals for bootstrapped startups—but will banks shed their risk-averse mindset?
✅ 𝗠𝗼𝗿𝗲 𝗳𝘂𝗻𝗱𝗶𝗻𝗴, ✅ 𝗕𝗲𝘁𝘁𝗲𝗿 𝗹𝗼𝗮𝗻 𝘁𝗲𝗿𝗺𝘀, ✅ 𝗘𝗮𝘀𝗶𝗲𝗿 𝘁𝗮𝘅 𝗽𝗼𝗹𝗶𝗰𝗶𝗲𝘀—𝗯𝘂𝘁 𝗮𝗿𝗲 𝘁𝗵𝗲𝘀𝗲 𝗲𝗻𝗼𝘂𝗴𝗵 𝘁𝗼 𝘁𝗿𝘂𝗹𝘆 𝗰𝗿𝗲𝗮𝘁𝗲 𝗮 𝘁𝗵𝗿𝗶𝘃𝗶𝗻𝗴 𝘀𝘁𝗮𝗿𝘁𝘂𝗽 𝗰𝘂𝗹𝘁𝘂𝗿𝗲?
Because here’s the truth: Startups don’t fail because of a lack of government schemes—they fail because of difficult execution, access gaps, and red tape.
What’s your take? Will #UnionBudget2025 fuel startup growth, or is it just another policy on paper? Drop your thoughts below! 👇
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