India introduced a brand new $1.15 billion Fund of Funds for startups on Saturday whereas unveiling sweeping regulatory reforms and an formidable nuclear power program, as New Delhi seeks to spice up tech innovation and clear power on this planet’s fifth-largest economic system.
Finance Minister Nirmala Sitharaman, presenting the federal funds for 2025-26, stated the fund builds on earlier startup funding applications which have already deployed greater than $1 billion from alternate funding funds. The brand new fund could have an “expanded scope” in comparison with earlier initiatives, although particular focus areas weren’t detailed within the funds.
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 12 months. 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 delight for the nation, whose broader economic system is projected to develop between 6.3% and 6.8% within the coming 12 months. The federal government is betting on innovation and entrepreneurship to assist obtain its longer-term objective of 8% development wanted to create satisfactory jobs for its younger inhabitants.
India startups have attracted over $100 billion prior to now decade from buyers together with Norges, SoftBank, Sequoia, Accel, Tiger International, Basic Catalyst, and Basic Atlantic. House to over 100 unicorn startups, India has additionally cemented its place as maybe the final nice development marketplace for Silicon Valley giants.
“The primary fund executed a couple 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 obtained arrange offering danger capital to lots of of startups. India wants home enterprise capital.”
The federal government additionally introduced a $2.3 billion Nuclear Power Mission geared toward growing at the 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 Power 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 funds speech, asserting plans to decriminalize greater than 100 provisions throughout numerous legal guidelines via 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 assert sure deductions. For startups in 27 sectors deemed essential for India’s self-reliance targets, the federal government lowered assure charges to 1% whereas doubling their credit score assure restrict to $230,000.
A brand new scheme focusing on 500,000 first-time entrepreneurs, notably ladies and people from scheduled castes and tribes, will present time period loans as much as $24,000 over the following 5 years. This system builds on classes from the prevailing 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 amenities. The funds additionally proposes “BharatTradeNet,” a unified platform for commerce documentation and financing options that would profit fintech startups.
