Among the various items on wish lists ahead of the 2025-26 Union Budget, the ones that truly stood out included a continued infrastructure push, the revitalisation of micro, small and medium enterprises (MSMEs), and greater incentives for startups and innovation — especially in the emerging sectors — which could boost employment and spur domestic growth.
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On the startup front, it was only fitting that the finance minister reaffirmed the government’s commitment to fostering innovation as we enter the 10th year of the Startup India programme. After abolishing ‘angel tax’ in 2024, a fresh infusion of Rs 10,000 crore to the fund of funds for startups, building upon the impressive Rs 91,000-crore investment corpus already created, could be hugely beneficial for India’s entrepreneurial ecosystem. The success of previous such investments has shown that when we back innovative Indian entrepreneurs with patient capital, they create solutions that not only serve the country but can be exported globally. This boost will particularly benefit startups working on emerging technologies like artificial intelligence, clean energy and deeptech.
Even as large tech startups strive to achieve problem-solving at scale, there is little denying that MSMEs form the backbone of the Indian economy. The robust focus on MSMEs through enhanced credit guarantee coverage and innovative financing solutions marks a major step towards building a more resilient economy.
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Having worked closely with thousands of hotel owners across India, I have witnessed firsthand how access to formal credit can transform small businesses. The doubling of guaranteed coverage to `10 crore and the introduction of a specialised credit card will unlock working capital for millions of entrepreneurs.
In another major step, while the increase in income tax exemption limit, in a significant relief for the salaried class, will expectedly take centre-stage, the broader measures announced by finance minister Nirmala Sitharaman are equally vital as India works towards realising its mission of becoming a developed nation by 2047,
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