Startup leaders hail Union Budget as catalyst for growth and innovation
The Union Budget is a “game-changing catalyst” for India’s economy and startup ecosystem, members of the Startup Policy Forum (SPF) said on Monday.
The Budget includes several key provisions such as tax relief for the middle class, enhanced credit access for MSMEs, and a fund of funds for startups.
The startups founders said the Budget’s bold measures will drive innovation, boost consumption, and promote inclusion, positioning India as a global economic powerhouse in the 21st century.
“New income tax limits could cause big jump in Gen Z consumption spends,” Kunal Shah, Founder, CRED said.
According to ?Lalit Keshre, Co-founder and CEO, Groww, the revised tax structure leaves more money in hand for the middle class, empowering retail investors to allocate more towards wealth creation.
“This will further boost financialisation of savings, as retail investors look to build long-term financial security,” Keshre noted.
Startup leaders believed that the government’s support will create new opportunities for businesses and investors, making India an even more attractive hub for startups.
With more than 1.59 lakh startups recognised by the Department for Promotion of Industry and Internal Trade (DPIIT), India has firmly established itself as the third-largest startup ecosystem in the world.
For startups, the credit guarantee cover will be increased from Rs 10 crore to Rs 20 crore, with the guarantee fee being moderated to 1 per cent for loans in 27 focus sectors important for Atmanirbhar Bharat.
The Alternate Investment Funds (AIFs) for startups have received commitments of more than Rs 91,000 crore. These are supported by the Fund of Funds, set up with a government contribution of Rs 10,000 crore.
According to Ritesh Agarwal, Founder and Group CEO, OYO, “We need to look beyond the Rs 10,000 crore headline - what's exciting isn't just the capital, it's the confidence.”
“Building for India means empowering both the AI researcher and the small-town entrepreneur. That's how you create an innovation economy, not just a startup economy,” he mentioned.
Aloke Bajpai, Group CEO, ixigo said that the industry is pleased as the government will continue to prioritise the UDAN scheme to enhance regional air connectivity, benefiting travellers from tier 2 and 3 cities.
