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The Budget 2025-26 introduces several key benefits and changes related to startups and businesses, focusing on MSMEs, innovation, investment, and taxation. Here are the major highlights: 1. Startup & MSME Support • Fund of Funds for Startups: A new ₹10,000 crore Fund of Funds will be established to provide capital to startups. • Credit Guarantee for Startups: The guarantee cover for startup loans has been increased from ₹10 crore to ₹20 crore, with a reduced guarantee fee for loans in 27 focus sectors. • Credit Cards for Micro Enterprises: Customized credit cards with a ₹5 lakh limit will be introduced for micro enterprises registered on the Udyam portal. • MSME Classification Revision: Investment and turnover limits for MSMEs will be increased to help them scale up. • First-Time Entrepreneur Scheme: Loans of up to ₹2 crore will be provided to 5 lakh first-time entrepreneurs, especially women and SC/ST entrepreneurs. • Enhanced Credit Availability: Credit availability for micro and small enterprises will increase from ₹5 crore to ₹10 crore, generating an additional ₹1.5 lakh crore in the next five years. 2. Investment & Innovation • Deep Tech Fund of Funds: A new fund will be set up to support startups in emerging technologies. • PM Research Fellowship: 10,000 fellowships will be granted for advanced research in IITs and IISc with enhanced financial support. • National Manufacturing Mission: To further “Make in India,” this mission will provide policy support, execution roadmaps, and a monitoring framework for industries. • Clean Tech Manufacturing: Support for solar PV cells, EV batteries, wind turbines, electrolyzers, and other green technology manufacturing. 3. Taxation & Financial Sector Reforms • Tax Relief for Startups: The period of incorporation for tax benefits has been extended by five years, now covering startups incorporated before April 1, 2030. • Personal Income Tax Relief: No tax up to ₹12 lakh income under the new tax regime, benefiting the middle class and boosting disposable income. • FDI in Insurance: The foreign direct investment (FDI) limit for insurance companies has been raised to 100% to attract more capital. • Simplification of KYC: A revamped Central KYC Registry will be introduced in 2025. 4. Export & Global Trade Support • Export Promotion Mission: A new initiative will help MSMEs and businesses integrate into global supply chains. • BharatTradeNet: A digital public infrastructure platform for international trade documentation and financing. • Support for Integration with Global Supply Chains: Focus sectors will receive targeted policy support. • National Framework for Global Capability Centers (GCCs): A policy to attract GCCs in tier-2 cities. These measures aim to strengthen India’s startup ecosystem, boost innovation, and create more investment opportunities while providing tax relief and financial support to entrepreneurs.