SEARCH

    Saved articles

    You have not yet added any article to your bookmarks!

    Browse articles
    Select News Languages

    GDPR Compliance

    We use cookies to ensure you get the best experience on our website. By continuing to use our site, you accept our use of cookies, Privacy Policies, and Terms of Service.

    What the Recent Budget Will Mean for Emerging Businesses Across India

    3 days ago

    What the Recent Budget Will Mean for Emerging Businesses Across India

    India’s 2025–26 Union Budget has rolled out a number of transformative measures designed to supercharge the growth of emerging businesses—from nimble startups to scaling MSMEs. Here’s how these developments can reshape the future of entrepreneurship across the country.

    1. More Capital, Easier Access

    • A fresh ₹10,000 crore Fund of Funds (FoF) has been announced to support innovation and expand funding avenues for startups.

    • The Credit Guarantee Scheme for startups has been enhanced—from ₹10 crore to ₹20 crore—making bank credit more accessible.

    • MSMEs also benefit: the credit guarantee cover for micro and small enterprises has doubled—from ₹5 crore to ₹10 crore—unlocking an additional ₹1.5 lakh crore in credit over five years.

    2. Tax Relief & Longer Benefit Periods

    • The startup tax holiday under Section 80-IAC has been extended by five years—applying to businesses incorporated until April 1, 2030.

    • Startups also gain from an extended loss carry-forward period, offering greater financial runway to grow before turning profit.

    • Corporate tax cuts and simplified GST compliance further ease financial burdens.

    3. Emerging Technology, AI, and R&D Get a Boost

    • A Deep Tech Fund of Funds is on the radar to nurture high-risk, high-reward sectors like AI, robotics, agritech, and clean energy.

    • ₹500 crore has been allocated to establish three AI Centres of Excellence, aimed at catalyzing interdisciplinary innovation.

    • More broadly, ₹20,000 crore has been earmarked for accelerating private-sector-driven R&D and innovation, enhancing India’s long-term competitiveness.

    4. Inclusivity, Fairness & Financial Access

    • The budget introduces a scheme for first-time entrepreneurs—especially women and SC/ST individuals—offering loans up to ₹2 crore over five years, supporting up to 5 lakh such entrepreneurs.

    • Additionally, customized credit cards (₹5 lakh limit) for registered micro-enterprises and exports-focused term loans of up to ₹20 crore enhance liquidity and growth potential.

    5. Backing Exports and Infrastructure

    • A massive ₹25,000 crore Export Promotion Mission (EPM) has been launched, with programs aimed at offsetting global tariff pressures and enhancing export competitiveness.

    • Infrastructure support extends to plug-and-play industrial parks, logistics hubs, and e-commerce export zones—great for manufacturing and export-ready startups.

    6. Quick Highlights for Emerging Businesses

    Focus Area                     Key Benefit
    Funding                         ₹10,000 Cr FoF + enhanced credit guarantees
    Tax Relief                       Extended startup holiday, easier GST & tax compliance
    Innovation Support       Deep-tech fund exploration, AI Centres, R&D allocation
    Inclusive Access             Loans for underrepresented entrepreneurs, micro-credit cards
    Exports & Logistics        ₹25,000 Cr export push, infrastructure backing

    In Summary

    The 2025–26 Budget represents a comprehensive push toward enabling emerging businesses across India to innovate, expand, and thrive. From deep-tech startups to grassroots MSMEs and women entrepreneurs, the new provisions aim to address capital access, regulatory bottlenecks, and digital transformation—all while propelling India toward its $5 trillion GDP ambition.

    Click here to Read more
    Prev Article
    From Street to Screen: How Indian Local Governance Impacts National Infrastructure Projects
    Next Article
    Maharashtra Approves ₹75,000 Crore Infrastructure Package

    Related Top News Updates:

    Comments (0)

      Leave a Comment