Boosting Innovation: Government Eyes Bigger Funds for Startups

The Commerce and Industry Ministry plans to seek additional funds for startups in the upcoming 2024-25 Budget. The Ministry's current seed fund scheme, ending in 2025, has been vital in supporting startups. A new scheme and dedicated policy for deep tech startups may also be proposed.


PTI | New Delhi | Updated: 09-06-2024 14:35 IST | Created: 09-06-2024 14:35 IST
Boosting Innovation: Government Eyes Bigger Funds for Startups
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The Commerce and Industry Ministry might request more funds for startups in the forthcoming Budget, scheduled to be announced by the new government in July 2024, an official revealed. This initiative aims to boost innovation across the country.

The current seed fund scheme, introduced in April 2021 with a corpus of Rs 945 crore, is set to conclude in 2025. To maintain momentum, the Ministry is considering a new scheme modeled similarly to continue supporting startups. The scheme provided essential financial assistance for proof of concept, prototype development, product trials, market entry, and commercialization.

Easy access to capital is crucial for entrepreneurs in the early stages of growth, as capital availability often determines the success or failure of startups. Over 1.17 lakh government-registered startups have created more than 12.42 lakh direct jobs, benefiting from various incentives including income tax exemptions. The Ministry is also expected to propose a dedicated policy for deep tech startups, which leverage advanced scientific and technological breakthroughs to address significant societal issues in India.

(This story has not been edited by Devdiscourse staff and is auto-generated from a syndicated feed.)

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