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Bugdet 2025 Photograph: (Bugdet 2025)
The Budget 2025 provides ₹10,000 crore for enhanced assistance for start-ups and fast-tracking business opportunities for women. Union Finance Minister Nirmala Sitharaman also proposed significant reforms in the budget for 2025 to promote startup growth in India and support systems for women entrepreneurs.
₹10,000 Crore Fund-of-Funds for Startups
The government's new ₹10,000 crores fund-of-funds (FoF) is designed to provide further financial support to drive entrepreneurial activities throughout Indian startups. As per the FM, the existing alternative investment fund had witnessed a remarkable growth rate in its development.
“The alternate investment fund for startups has received commitments of more than ₹91,000 crore. These are supported by the fund of funds set up with the government of India's contribution of ₹10,000 crore.”
Building on this momentum, she announced:
“Now, a new fund of funds with expanded scope and a fresh contribution of another ₹10,000 crore will be set up.”
What is a Fund-of-Funds (FoF)?
A fund-of-funds operates as a fund umbrella by directing investment capital into diverse venture capital and private equity funds. The risk reduction methods through this approach enable broader market effects that lead to innovative job creation and industry development. The existing FoF initiative has shown vital funding support for new business ventures although the fresh funding will strengthen its momentum.
Easier Credit Access for Startups
Startups will gain better availability of credit as their main funding source following this announcement. The financial support initiative introduced by Sitharaman enables 27 critical sectors within the
‘Atmanirbhar Bharat’ framework to obtain loans worth between ₹10 crore and ₹20 crore with reduced guarantee fees set at 1%. The government wants to establish India as an international entrepreneurial center while promoting domestic independence through this initiative.
₹2 Crore Loans for SC/ST Women Entrepreneurs
The FM introduced a special entrepreneurial scheme to benefit five lakh women who belong to the SC/ST communities. As a product of the Stand Up India program the initiative extends term loans up to ₹2 crore during the next five years to first-time women business owners.
“This will provide term loans up to ₹2 crore during the next five years,” Sitharaman said, emphasizing the government’s commitment to empowering marginalized communities through financial support.
A Budget Focused on Growth & Inclusion
The government remains dedicated to innovation and financial empowerment and inclusive economic growth as demonstrated by Budget 2025. The infusion of new funding for startups and specialized backings for female entrepreneurs follows India's enduring plan to build an economically self-reliant nation.
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