Start, Build, ScaleĀ ā¢Ā 4m
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 ā¹10,000 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 ā¹10 crore to ā¹20 crore, with a reduced guarantee fee for loans in 27 focus sectors. ⢠Credit Cards for Micro Enterprises: Customized credit cards with a ā¹5 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 ā¹2 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 ā¹5 crore to ā¹10 crore, generating an additional ā¹1.5 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 āMake in India,ā 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 ā¹12 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 Indiaās startup ecosystem, boost innovation, and create more investment opportunities while providing tax relief and financial support to entrepreneurs.
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