/indianstartupnews/media/media_files/2025/02/01/c6KJ0ifhIEIT5IGDxd5x.jpg)
Union Finance Minister Nirmala Sitharaman is set to present her seventh consecutive Union Budget on Saturday, Feb. 1, marking the second budget of Prime Minister Narendra Modi’s third term in office.
Sitharaman, who first broke with colonial-era tradition in 2019 by replacing the customary Budget briefcase with a traditional “bahi khata,” will once again present the budget in a paperless format, using a tablet.
Expectations run high for the 2025 budget, with many anticipating a renewed focus on infrastructure, social welfare, and economic reforms. This year’s budget also follows Sitharaman’s ongoing push for bold structural changes aimed at spurring investment and employment.
-
Feb 01, 2025 18:46 IST
"MSMEs is a crucial step in fostering financial inclusion and enabling small businesses": Ronak Morbia
"The Union Budget 2025 reinforces India's commitment to infrastructure development through Public-Private Partnerships (PPP), with each ministry proposing three PPP projects and ₹1.5 lakh crore allocated as interest-free loans for capital expenditure. The provision of term loans up to ₹20 crore for MSMEs is a crucial step in fostering financial inclusion and enabling small businesses to scale operations," said Ronak Morbia, Chairman & Managing Director, ArisInfra Solutions Ltd."
-
Feb 01, 2025 15:38 IST
'This budget is a big win for India’s startup ecosystem': Shashvat Nakrani, Founder, BharatPe
"This budget is a big win for India’s startup ecosystem. The ₹10,000 crore Fund of Funds, along with extended tax benefits and regulatory reforms, will provide the much-needed capital and ease of doing business for emerging ventures. The government’s focus on AI skilling and empowering first-time entrepreneurs—especially women and SC/ST founders—will further facilitate inclusivity and provide opportunities in India’s innovation landscape. Moreover, the focus on the 5.7 crore MSMEs, including over one crore registered businesses, is a pivotal step. These businesses employ 7.5 crore people and the enhanced investment and turnover limits for MSMEs will empower them to scale, innovate, and create more employment opportunities for the youth."
-
Feb 01, 2025 13:10 IST
'FoF worth Rs 10,000 crore is strong commitment to cultivate an entrepreneurial ecosystem': Sridhar Parthasarathy
"The government’s announcement of a another Fund of Funds (FoF) worth ₹10,000 crore in the budget is strong commitment to cultivate an entrepreneurial ecosystem and an acknowledgement of Alternative Investment Funds (AIFs) in channeling these resources effectively. While equity funding through AIFs is essential, there is an urgent need for debt financing for startups. The introduction of a credit guarantee will help startups achieve a balanced mix of equity and debt funding, making their growth more sustainable. Additionally, the plan for a new Deep Tech Fund of Funds is a crucial step towards advancing deep tech innovation in India. This signals a clear intent from the govt to position India strongly in the global AI race, which is much needed boost for deep tech startups specially in AI and space tech".
-
Feb 01, 2025 13:08 IST
'This budget creates long-term value in the ecosystem': Ankur Mittal, Co-Founder of Inflection Point Ventures
"Our ask was a better credit platform and framework for startups, and to that extent, this is a welcome step. This will allow them to grow and build sustainable businesses and not be dependent on just equity infusion to grow. Their capacity to attract follow-on growth capital will be further strengthened by the additional cash, which will also help them make important investments in operations, personnel, and technology. This action boosts job creation, accelerates startup growth, and creates long-term value in the ecosystem by resolving financial limitations," said Ankur Mittal, Co-Founder of Inflection Point Ventures.
-
Feb 01, 2025 13:06 IST
'FM has announced a string of boosters for the Indian startup sector': Bruce Keith, Co founder CEO, InvestorAi
"While the Budget started with a big bang quite literally, the Honourable Finance Minister has announced a string of boosters for the Indian startup sector. The extensions to the loan programs make sense in the context of micro enterprises. However, the crucial fund of funds of Rs 10,000 crore will play a key role in boosting domestic capital in the startup sector," says Bruce Keith, Co-founder and CEO, InvestorAi.
"The announcement on deep tech fund, while details are awaited, it should be viewed through the DeepSeek lens of what can be done with relatively small amounts of capital when provided to agile and creative teams. We expect the VC ecosystem to bring velocity and momentum into funding these enterprises. I was especially delighted to hear about the enhancing the “spirit of curiosity and innovation “ with IIT expansions of capacity and centres of excellence for AI education – talent availability is a necessary part of continuing our growth," Keith added.
-
Feb 01, 2025 12:41 IST
'The increase in credit guarantee for startups is much needed': Mayuresh Raut, Managing Partner, Seafund
"The increase in credit guarantee for startups from Rs 10 crore to Rs 20 crore is a much needed demand that has been finally accepted. This will not only enable startups to have access to debt capital it will also help them scale faster with less equity dilution. Hence, it will lead to a virtuous cycle of higher top line, less equity dilution, better valuation and better fundraise. As the budget commenced, the FM highlighted that they would like to see 70% women participation in economy building, thus, the addition to credit guarantee will ensure a timely boost as more women entrepreneurs is the need for our ecosystem"
"With regards to the earlier 3 Centers of Excellence, this along with Krishi Dhan Dhanya program will bring the best of AI practices to the agri-tech startups ecosystem and breed further innovation. Our view is that this requires large patient capital, but aligns us with the renaissance and renewed interest in nuclear energy that is happening all over the world, led by the US. Definitely opens the sector to private investors. Push for data centres consuming huge powers will need nuclear power which will further fuel our AI aspirations."
-
Feb 01, 2025 12:40 IST
'Govt realises the future innovation is the heart of economic growth': Majumdar from Unicorn India Ventures
"Given that deeptech is being seen as an area for growth at the national level, with a China +1 macro and creation of the PLI/DLI schemes of the government, this is a great step. The Government has created this FoF for deeptech to enable funds to invest in deeptech and back highly innovative startups that can put India in a competitive global AI race," said Bhaskar Majumdar, Managing Partner, Unicorn India Ventures.
"Hand in hand, in continuation of the R&D fund of last year, the Government has enhanced the same for enterprises to enable technology innovation. This shows that the Govt realises the future innovation is the heart of economic growth as the global wars are fought around AI and Semiconductors," Majumdar added.
-
Feb 01, 2025 12:39 IST
Govt to forgo Rs 1 lakh crore in direct taxes
The Indian government is expected to forgo around Rs 1 lakh crore on direct taxes and Rs 2,600 crore on indirect taxes on account of changes in tax rates.
-
Feb 01, 2025 12:33 IST
'Higher customs duty on flat panels to boost Make in India': FM Sitharaman
During the Budget 2025 announcement on Saturday, February 1, Finance Minister Nirmala Sitharaman proposed several changes to customs duties to support the Make in India initiative.
She proposed increasing the basic customs duty on interactive flat panel displays from 10% to 20% while reducing the duty on open cells and other components to 5%.
Additionally, she suggested boosting the domestic manufacture of open cells for LCD and LED televisions by exempting them from customs duty altogether. This move follows an earlier reduction of the customs duty on these items from 5% to 2.5%.
-
Feb 01, 2025 12:31 IST
'Big relief for taxpayers!': Adhil Shetty, CEO of Bankbazaar.com
Adhil Shetty, CEO of Bankbazaar.com, said: "Big relief for taxpayers! Under the new tax regime, income up to ₹12 lakh will now be tax-free, significantly reducing the financial burden on the middle class. This bold move enhances disposable income, encourages spending, and promotes economic growth. By simplifying taxation and easing compliance, the government reinforces its commitment to a taxpayer-friendly system. This reform not only benefits salaried individuals but also supports businesses and investments, driving overall prosperity. With a focus on financial empowerment and ease of living, this tax relief is a major step toward a more inclusive and growth-oriented economy."
-
Feb 01, 2025 12:31 IST
Income Tax Exemption Limits
2005: Rs 1 lakh
2012: Rs 2 lakhs
2014: Rs 2.5 lakhs
2019: Rs 5 lakhs
2023: Rs 7 lakhs
2025: Rs 12 lakhs
With this, the Indian government will forgo around Rs 1 lakh crore on direct taxes and Rs 2,600 crore on indirect taxes on account of changes in tax rates.
-
Feb 01, 2025 12:29 IST
'The renewal of the Rs 10,000 crore commitment to the Fund of Funds is significant step for startup ecosystem': FM
“The renewal of the ₹10,000 crore commitment to the Fund of Funds for AIFs is a significant step forward for the Indian startup and investment ecosystem. The initial Rs 10,000 crore commitment catalyzed Rs 91,000 crore in investments, and I fully expect this fresh infusion to attract an additional Rs 1 lakh to Rs 1.5 lakh crore in capital. This initiative will provide much-needed growth capital to early-stage startups, further strengthening India’s position as a global innovation hub. We are supremely excited about this development and look forward to actively participating in this next wave of investment momentum.”
-
Feb 01, 2025 12:26 IST
'New income tax bill will be simple to understand': FM Sitharaman
On direct tax proposals, FM Nirmala Sitharaman said, “I am happy to inform, for new income tax, we will carry forward the spirit of ‘nyay’, the new bill will be clear and direct in text… it will be simple to understand for taxpayers, leading to reduced litigation.”
“I propose to introduce the New Income Tax Bill next week,” Sitharaman said.
-
Feb 01, 2025 12:20 IST
'No income tax up to Rs 12 lakh': FM Nirmala Sitharaman
During the Budget 2025 announcement, Finance Minister Nirmala Sitharaman stated that under the new tax regime, individuals earning up to Rs 12 lakh (or up to Rs 12.75 lakh for salaried taxpayers with a standard deduction of Rs 75,000) will not have to pay any income tax.
She explained that these reforms are specially designed to ease the tax burden on the middle class, leaving more money in their hands and thereby boosting household consumption, savings, and investment.
Sitharaman further noted that the revised tax slabs and rates have been structured to benefit all taxpayers. -
Feb 01, 2025 12:12 IST
'National Geospatial Mission to be launched': FM Sitharaman
The government will launch the National Geospatial Mission to develop essential geospatial infrastructure and comprehensive data.
By leveraging the PM Gati Shakti initiative, the mission aims to modernize land records, enhance urban planning, and support the design of efficient infrastructure projects across the country.
-
Feb 01, 2025 12:03 IST
10,000 fellowships to be provided in next five years: FM Sitharaman
10,000 fellowships to be provided under the PM Research Fellowship scheme in next five years, for technological research in IITs and IISc.
-
Feb 01, 2025 12:01 IST
Focused on promoting innovation in partnership with private sector: Sitharaman
The government is making a major push in research, development, and innovation by investing ₹20,000 crore in a private-sector-driven initiative, as announced in the July Budget.
The investment is aimed at driving breakthroughs in technology and science. As part of the initiative, a Deep Tech Fund of Funds will be explored to support next-generation startups, ensuring that cutting-edge ideas receive the necessary funding and support.
In addition, to secure the future of food and nutritional security, a second gene bank will be established, which will house 10 lakh germplasm lines. This gene bank will play a critical role in preserving genetic diversity and supporting advancements in agriculture.
Investing in Research, Development and Innovation
— PIB India (@PIB_India) February 1, 2025
₹ 20,000 crore for private-sector driven Research, Development and Innovation initiative announced in the July Budget#ViksitBharatBudget2025 #Budget2025 #UnionBudget2025
(1/4) pic.twitter.com/wGPNZTi4do -
Feb 01, 2025 11:52 IST
Budget 2025: New classification criteria for MSMEs
The government has revised the classification criteria for MSMEs to help them grow and create more job opportunities for youth. Under the new guidelines, the investment limit is increased by 2.5 times and the turnover limits are doubled.
For micro-enterprises, the investment limit rises from Rs 1 crore to Rs 2.5 crore, and the turnover limit from ₹5 crore to Rs 10 crore.
Small enterprises will now have an investment limit of Rs 25 crore instead of Rs 10 crore, with the turnover limit increasing from Rs 50 crore to Rs 100 crore.
Medium enterprises see their investment limit grow from Rs 50 crore to Rs 125 crore, while the turnover limit increases from Rs 250 crore to Rs 500 crore.
Presently, India has over 1 crore registered MSMEs, employing about 7.5 crore people, and these businesses contribute 45% to exports and 36% to manufacturing.
-
Feb 01, 2025 11:48 IST
'Indian govt to expand capacities IITs': FM Sitharaman
Finance Minister Nirmala Sitharaman announced plans to expand the capacity of the Indian Institute of Technology in Patna as part of a broader initiative to increase infrastructure across IITs. This expansion will allow an additional 6,500 students to be accommodated across five IITs.
She highlighted that over the past ten years, 23 IITs have collectively exceeded a student capacity of 1.35 lakh.
Reflecting on the focus on innovation, she stated, “I had announced three excellence centres in AI for agriculture in 2023. Now a centre of excellence for education will be set up with an outlay of 500 crores…”
-
Feb 01, 2025 11:38 IST
FM Nirmala Sitharaman announces new Fund of Funds for startups
Finance Minister Nirmala Sitharaman announced that the government will set up a fresh corpus of Rs 10,000 crore for the Startup India initiative.
This new fund of funds, which comes with an expanded scope, adds to the existing commitment of Rs 91,000 crore already received by the Startup FoF.
Managed by the Small Industries Development Bank of India (SIDBI), the scheme has supported venture capital firms such as Blume Ventures, Kae Capital, Stellaris Venture Partners, and Sorin Investments, and has deployed Rs 11,147.70 crore by SIDBI so far.
-
Feb 01, 2025 11:28 IST
'Credit guarantee to be enhanced': FM Sitharaman
During her budget speech, Finance Minister Nirmala Sitharaman announced new measures to make it easier for MSMEs to get loans. She explained that the credit guarantee cover for MSMEs will be significantly increased.
For micro and small enterprises, the credit limit will be raised from Rs 5 crore to Rs 10 crore, which will add an extra Rs 1.5 lakh crore of credit over the next five years.
For startups, the limit will increase from Rs 10 crore to Rs 20 crore, and the guarantee fee for loans in 27 key sectors will be reduced to just 1%.
Additionally, customized credit cards will be introduced for micro-enterprises registered on the Udyam Portal, with each card having a limit of Rs 5 lakh, and 10 lakh of these cards will be issued in the first year.
Making it Easier for MSMEs to get Loans
— Ministry of Finance (@FinMinIndia) February 1, 2025
Credit guarantee cover for MSMEs to be significantly enhanced
Customized Credit Cards for Micro Enterprises to be introduced#ViksitBharatBudget2025 #Budget2025 #UnionBudget2025 pic.twitter.com/mLJTmKKnPt -
Feb 01, 2025 11:22 IST
MSMEs are the 2nd engine: FM Sitharaman
More than one crore registered MSMEs now contribute 37% to manufacturing and account for 45% of exports, helping to make India a global manufacturing hub, according to FM Sitharaman.
To support these businesses, the government is raising the limits for MSME classification—the investment limit will be increased by 2.5 times, and the turnover limit will be doubled.
As Finance Minister Nirmala Sitharaman explained, "This will give them the confidence to grow and generate employment for our youth."
-
Feb 01, 2025 11:15 IST
India is fastest-growing economy among all major economies in the world: FM Sitharaman
FM Nirmala Sitharaman said India's economy is the fastest-growing among all major global economies.
“Our development track record of the past 10 years and structural reforms have drawn global attention. Confidence in India’s capability and potential has only grown in this period. We see the next five years as a unique opportunity to realize ‘Sabka Vikas’, stimulating balanced growth of all regions,” Nirmala Sitharaman said.
-
Feb 01, 2025 11:02 IST
Nirmala Sitharaman begins presenting budget
Union Finance Minister Nirmala Sitharaman begins presenting her record 8th consecutive budget in Parliament, New Delhi.
FM Sitharaman said the latest budget is focused on accelerating the growth of the country.
-
Feb 01, 2025 10:53 IST
Union Cabinet approves Budget proposal
During a meeting held in Parliament ahead of the budget presentation, the Union Cabinet officially approved the Union Budget 2025-26 proposal. Finance Minister Nirmala Sitharaman is expected to begin presenting the budget at 11 a.m.