India introduced a brand new $1.15 billion Fund of Funds for startups on Saturday whereas unveiling sweeping regulatory reforms and an bold nuclear power program, as New Delhi seeks to spice up tech innovation and clear power on the earth’s fifth-largest economic system.
Finance Minister Nirmala Sitharaman, presenting the federal finances for 2025-26, stated the fund builds on earlier startup funding packages which have already deployed greater than $1 billion from alternate funding funds. The brand new fund can have an “expanded scope” in comparison with earlier initiatives, although particular focus areas weren’t detailed within the finances.
She additionally outlined plans for a Excessive-Degree Committee for Regulatory Reforms that may overview all non-financial sector laws, certifications, licenses and permissions inside a yr. The initiative goals to strengthen “trust-based financial governance” and ease compliance burdens for startups and know-how firms, she stated.
New Delhi will discover making a separate Deep Tech Fund of Funds to catalyze next-generation startups engaged on superior applied sciences, a part of a broader push to strengthen India’s place in rising tech sectors.
These measures come as India’s startup ecosystem emerges as a big jobs creator and a supply of pleasure for the nation, whose broader economic system is projected to develop between 6.3% and 6.8% within the coming yr. The federal government is betting on innovation and entrepreneurship to assist obtain its longer-term objective of 8% development wanted to create sufficient jobs for its younger inhabitants.
“The primary fund accomplished a number of years in the past gave an enormous fillip to the Indian enterprise capital business,” stated Sanjeev Bikhchandani, a high-profile investor who’s among the many earliest backers of Zomato and Policybazaar. “Dozens of Indian VC funds received arrange offering danger capital to tons of of startups. India wants home enterprise capital.”
The federal government additionally introduced a $2.3 billion Nuclear Vitality Mission aimed toward growing at the very least 5 indigenous small modular reactors by 2033. This system is a part of India’s objective to realize 100 gigawatts of nuclear power capability by 2047, with deliberate amendments to the Atomic Vitality Act to allow non-public sector participation.
“We’re decided to make sure that our laws sustain with technological improvements and international coverage developments,” Sitharaman stated in her finances speech, saying plans to decriminalize greater than 100 provisions throughout varied legal guidelines by way of a brand new Jan Vishwas Invoice 2.0.
The federal government additionally prolonged tax advantages for startups by 5 years, permitting firms included earlier than April 2030 to say sure deductions. For startups in 27 sectors deemed essential for India’s self-reliance objectives, the federal government diminished assure charges to 1% whereas doubling their credit score assure restrict to $230,000.
A brand new scheme concentrating on 500,000 first-time entrepreneurs, significantly ladies and people from scheduled castes and tribes, will present time period loans as much as $24,000 over the subsequent 5 years. This system builds on classes from the present Stand-Up India scheme, the minister stated, aiming to broaden the startup ecosystem’s attain.
To spice up innovation in electronics manufacturing, a key focus space for tech startups, the federal government launched a presumptive taxation scheme for non-residents concerned in establishing manufacturing services. The finances additionally proposes “BharatTradeNet,” a unified platform for commerce documentation and financing options that would profit fintech startups.
