Commerce Ministry To Likely Propose More Funds To Boost Start-up Culture In Next Budget

Currently, there are more than 1.17 lakh start-ups in the country registered with the government. These businesses remain eligible for income tax and to avail other benefits

The Commerce and Industry Ministry could be looking for more funds for start-ups in the upcoming Budget, an official said. The Budget, lined up to be revealed by the new government around July for 2024-25, could look into a push for innovation in the country.

The seed fund scheme is set to expire in 2025. Announced in April 2021 with a corpus of Rs 945 crore, the fund was launched to help provide financial assistance to new businesses for proof of concept, prototype development, product trials, commercialisation, and market entry.

According to a report by PTI, the official said that the ministry could look into recommending a new scheme on similar lines. The fund was divided into four years to help provide seed funding to the start-ups via incubators across the country. 

The report cited another official and noted that entrepreneurs need easy access to capital in the beginning stages of growth of their business as the funds needed at this point play a crucial make or break role in the new enterprises. 

Currently, there are more than 1.17 lakh start-ups in the country registered with the government. These businesses remain eligible for income tax and to avail other benefits. These recognised new units have reportedly generated more than 12.42 lakh direct jobs.

Further, the ministry is also looking into setting up a policy dedicated for deep tech start-ups. Deep technology means innovations based on advanced scientific and technological breakthroughs. These ideas could be the answer to the country’s most pressing societal problems owing to their disruptive nature.

The earlier government also paid special attention to developing the start-up culture in the country. The Startup India initiative, launched in January 2016, was meant to help foster a vibrant start-up ecosystem in India. The scheme was set up along with an action plan for the new businesses including incentives. This plan included 19 action items spread across stages, like funding support, incentives, incubation, industry-academia partnerships, etc.