Finance Minister Nirmala Sitharaman, in her record eighth Budget presentation on February 1, 2025, unveiled the Union Budget 2025, introducing an additional ₹10,000 crore to the Fund of Funds for Startups. This move aims to strengthen India’s startup ecosystem, foster entrepreneurship, and drive economic growth.
Here’s how key voices from the startup community reacted to the announcement:
The below things to add before this :
The revised tax regime seeks to simplify tax compliance while ensuring fairness in the system. Vivek Agarwal, Global Policy Expert at the Tony Blair Institute for Global Change, emphasized that clarity in taxation boosts trust and voluntary compliance. The new tax slabs offer a progressive structure:
· 0-4 lakh rupees – Nil tax
· 4-8 lakh rupees – 5% tax
· 8-12 lakh rupees – 10% tax
· 12-16 lakh rupees – 15% tax
· 16-20 lakh rupees – 20% tax
· 20-24 lakh rupees – 25% tax
· Above 24 lakh rupees – 30% tax
For salaried taxpayers, the standard deduction of Rs 75,000 extends the exemption limit to Rs 12.75 lakh, offering greater relief to the working middle class.
Here’s how key voices from the startup community reacted to the announcement:
The Union Budget 2025-26 prioritizes inclusive growth, focusing on "Garib, Youth, Annadata, and Nari" (poor, youth, farmers, and women). It strengthens four key growth drivers—Agriculture, MSMEs, Investment, and Exports—while boosting middle-class consumption and ensuring fiscal prudence, enhancing India's global credibility. The budget outlines its macro-economic impact and evaluates 21 major sectors, each rated based on the expected influence of policy announcements. This vision positions India for sustainable and resilient progress.
Dr. Jaijit Bhattacharya ,President, Centre for Digital Economy Policy Research
The union budget 2025-26 carries forward the push towards Ease of Doing Business, while promoting Agriculture, MSME, Healthcare. The one big announcement is the reduction of direct tax rates and making it nil for income up to 12 lacs. This will lead to significantly increased consumption, and therefore increase in indirect taxes. Also, the budget has a series of critical initiatives impacting investments into the economy, both foreign and domestic. Sticking to the downward glide path of fiscal deficit and targeting 4.4% will help keep inflation at check while instilling further confidence in investors. The initiatives on the Ease of Doing Business, especially moving towards a trust based governance, will help further unshackle up the entrepreneurial spirits of the country. Continued focus on building large industries such as Ship Building, Energy, Nuclear power, etc, would help lift the MSMEs and propel the economy. These are obviously multi-year initiatives but provides a good indication of the intent of the government in various sectors. Personally, I would have like to see some budgetary allocation on reducing pollution, especially air pollution. Overall, this is a budget in continuity, making life easier for people and businesses, supporting the vulnerable sections of the society and helping in building investor confidence
India will prioritize boosting middle-class spending power, promoting inclusive development, and encouraging private investment to drive economic growth, Finance Minister Nirmala Sitharaman announced while presenting the 2025-26 Budget on Saturday. The budget also includes key measures for the poor, youth, farmers, and women, along with transformative tax reforms. One of the most significant announcements is the NIL income tax for earnings up to ₹12 lakh per annum, marking a major relief for taxpayers and strengthening financial security for the middle class.
Mr. Ravi Mittal, Founder and CEO of QuackQuack
Ms. Roshni Aslam, Co-founder & CEO of GoSats
Ashish Agarwal – Co-Founder, Enzyme Office Spaces
"The government’s decision to infuse an additional ₹10,000 crore into the Fund of Funds underscores its unwavering commitment to India's thriving startup ecosystem. With the existing FoF having already secured funding commitments exceeding ₹9 lakh crore, this fresh capital will ensure continued support for new-age startups, unlocking new opportunities for innovation and growth."
Saurabh Tyagi – Co-Founder & CEO, PropChk
"For startups actively seeking domestic funding, this expansion of the Fund of Funds is a welcome boost. The move is particularly crucial for deep-tech startups and emerging sectors, as it helps bridge a significant funding gap and fosters sustainable growth."
Kishor Fogla – Founder, Yellow Slice
"Private investments in cutting-edge technologies will gain momentum with this fund expansion. The extended range of funding, backed by over ₹9 lakh crore in commitments, will solidify India's position as a global startup hub and catalyze a new wave of entrepreneurial ventures."
Sahil Arya – Co-Founder & Director, Fat Tiger
"The government's focus on widening access to funding, with a substantial ₹10,000 crore infusion, reflects the evolving nature of startup financing. This shift will not only nurture the next generation of entrepreneurs but also refine funding mechanisms to better support India's dynamic startup landscape."
Bruce Keith – Co-founder & CEO, InvestorAi
"The Fund of Funds is a major step in strengthening India’s startup ecosystem, particularly in boosting domestic capital for innovation. While we await further details on the Deep Tech Fund, this move aligns well with India's growing ambition in AI and frontier technologies. I’m also excited to see the government’s commitment to fostering AI talent through IIT expansions and Centers of Excellence."
Sridhar Parthasarathy – Co-founder & General Partner, Bluehill.VC
"The ₹10,000 crore Fund of Funds underscores the government’s commitment to fostering entrepreneurship and deep-tech startups. While Alternative Investment Funds (AIFs) will play a crucial role in channeling these funds, there is an urgent need for debt financing for startups. The proposed credit guarantee scheme is a much-needed step that will help startups balance equity and debt funding, making their growth more sustainable."
Ankur Mittal – Co-founder, Inflection Point Ventures
"Startups need access to better credit frameworks, and the budget addresses this challenge. Strengthening credit access will reduce dependency on equity funding, allowing startups to build sustainable business models. The additional infusion of capital will also enhance their ability to attract further investments in operations, hiring, and technology development, ultimately driving long-term economic impact."
Dinesh Arjun – CEO & Co-founder, Raptee.HV
"Innovation is at the core of a developed economy, and India’s Viksit Bharat vision rightly focuses on deep-tech investments. The government’s commitment to AI, coupled with the Deep Tech Fund, will strengthen India’s industrial ecosystem. For the EV sector, the exemption on Li-Ion batteries and capital goods is a critical boost, reducing battery costs and accelerating electric vehicle adoption across the country."
Pankit Desai – Co-founder & CEO, Sequretek
"The establishment of AI Centers of Excellence (CoEs) represents a landmark moment—AI is no longer a peripheral discussion but a key part of the government’s economic strategy. The budget’s deep-tech funding commitments acknowledge the high-risk, high-reward nature of AI innovation. Additionally, the 5-year extension of the startup incorporation period and tax relief measures will ease financial pressure on early-stage startups, allowing them more time to scale and achieve profitability."
Swapna Bapat, Vice President & Managing Director, India and SAARC, Palo Alto Networks
Sunil Gupta, Co-founder, CEO & MD, Yotta Data Services
“The Union Budget 2024 reinforces India’s ambition to emerge as a global technology powerhouse by driving AI, deep tech, and cutting-edge research. The ₹500 crore investment outlay for three Centres of Excellence for AI in education is a big step towards making AI-led learning mainstream. This will not only help in upskilling the AI talent pool in India and preparing the youth for the jobs of the future but also democratize access to high-quality education by enabling AI-driven solutions such as real-time language translation and personalized learning pathways. This is especially critical in a country where millions of students receive their education in their native languages and aspire to careers in sectors that primarily operate in these languages.
Additionally, measures like the Deeptech Fund of Funds and the 10,000 fellowships for tech research at IITs and IIScs under the PM Research Fellowship Scheme will help bridge the gap between education and employability while creating a robust pipeline for homegrown AI-led technological breakthroughs. By integrating AI into education at scale, India is not only addressing existing challenges in the education system but also equipping students with the digital and analytical skills necessary for the modern economy.
Just as the IT boom positioned India as a global tech hub, this budget lays the foundation for long-term AI leadership by prioritizing talent development. By fostering AI-driven learning, removing financial and linguistic barriers, and enabling large-scale skill-building, India is not just preparing for the future but actively shaping it—taking a decisive step toward global digital leadership.”
Ms. Praveena Rai, MD & CEO, MCX
"The 2025 Budget presents a pragmatic approach to startup growth. The new ₹10,000 crore Fund of Funds, combined with streamlined business registration processes, shows that we're moving beyond mere funding to creating an enabling environment for innovation. The emphasis on credit access, particularly the 1% guarantee fee for loans up to ₹20 crore in 27 key sectors, could be transformative for startups working on capital-intensive solutions in manufacturing, deep tech, and other strategic sectors. This is crucial as we see a shift from pure digital plays to more complex, innovation-driven ventures. However, the real test lies in implementation. While compliance reduction is a step in the right direction, startups need a more fundamental ease of doing business - faster fund deployment, clearer regulatory frameworks, and simpler tax structures. These are critical for early-stage ventures where time and resources are always at a premium. As we look ahead, these measures could help India move beyond being just a large startup hub to becoming a global innovation powerhouse.," -- Ganesh Raju, Founder, Turbostart Global.
Mr. Ashish P. Dhakan, Managing Director & CEO -Prama Hikvision India Pvt. Ltd.
We welcome the progressive Union Budget 2025-2026, which has a future roadmap to steady reforms. It has a booster dose for India’s technology ecosystem. This is a growth-oriented budget with significant relief for the middle class. The Union Budget has sparked interest in the video security industry and its key stakeholders. The key announcements and provisions relevant to the video security industry are getting positive feedback.
The budget proposes establishing a Centre of Excellence in Artificial Intelligence for education, with an outlay of ₹500 crore. This initiative could have positive implications for AI-powered video security solutions. The Union Budget aims to boost domestic semiconductor manufacturing through incentives and investments. This could lead to advancements in video security technology, such as improved camera sensors and processing capabilities. The budget proposes exempting customs duties on critical minerals, including lithium-ion battery scrap, which could benefit the manufacturing of security devices. The budget plans to expand broadband connectivity to rural schools and health centers, which could create new opportunities for video security solutions in these areas. The incentives for ‘Make-in-India’ initiatives can help the electronic security industry to expand and grow further.
Jyoti Sharma, CEO, Nasscom Foundation
“The 2025 Union Budget reinforces technology's role as a catalyst for inclusive growth, with specific emphasis on digital inclusion, skills development, and empowerment of women, farmers, and marginalized communities, strongly aligning with our mission at nasscom foundation. It is elating to see a strategic emphasis on AI, particularly the establishment of a Centre of Excellence in AI for Education with an allocation of ₹500 crore coupled with further investments in upskilling and reskilling programs, particularly targeting women and rural populations, aligns with our vision and mission of fostering inclusive growth. With allocated funds, initiatives such as dedicated research centers for AI, expanded digital infrastructure, and support for the deep-tech ecosystem, will further fuel growth, innovation, and sustainable development.
At nasscom foundation, we are positive that the Budget will create new avenues for the youth and women, encourage investments in AI for social good, strengthen India’s economic growth trajectory of India and support the government realize the vision of Viksit Bharat 2047. In essence, we look forward to collaborating with the government and other stakeholders to implement these initiatives effectively, ensuring that the benefits reach the grassroots level and contribute to a digitally empowered and inclusive India”
Mr. Kapal Pansari, Managing Director, Rashi Peripherals Limited (RP Tech)
‘’The Union Budget 2025 strengthens India’s commitment to domestic electronics manufacturing and aligns with the vision of 'Make in India' and 'Digital India.' The increase in the tax-free income threshold to ?12 lakh under the new tax regime is a welcome step that will raise disposable incomes, driving higher demand for consumer electronics, IT peripherals, and gaming products—key focus areas for RP Tech. Additionally, the government's support for the electronics industry and rationalization of customs duties on key components will enhance local manufacturing competitiveness, further strengthening India's position as a global electronics hub.
The push to promote Global Capability Centers (GCCs) in Tier-2 cities will accelerate digital adoption and create new opportunities in emerging markets, supporting the broader goals of the 'Digital India' initiative. Policy measures encouraging domestic production of critical electronic components will contribute to a more self-reliant and resilient electronics supply chain. These initiatives collectively will drive the growth of the ICT sector, empower businesses, and ensure that cutting-edge technology reaches every household across the country. Overall this is a progressive budget targeted at inclusive growth."
Rajnish Gupta, Partner, Tax and Economic Policy Group, EY India
“The budget underscores the commitment of the Government of India to promote AI. In addition to the specific proposal namely setting up a Centre of Excellence in Artificial Intelligence for education will be set up with a total outlay of ` 500 crore, announcements with regards to Deep Tech Fund of Funds for next generation start-ups and PM Research Fellowship that will provide ten thousand fellowships for technological research in IITs and IISc will help entrepreneurs and researchers.
The budget announcements have been supplemented by significant announcements of the Government with regard to development of domestic AI models and early availability GPUs and operationalising of AI India data platform. Government of India initiatives together with the recent developments that bring down the cost of AI and availability of open source models augur well for the future of AI in India.”
Karthik Rajaram, Area Vice President and GM, India, Elastic
"The Union Budget 2025 reinforces India’s vision for a strong, secure, and AI-driven digital economy. The AI Centre of Excellence for education with a ₹500 crore outlay and the Deep Tech Fund of Funds, highlights the government’s focus on AI and emerging tech as growth drivers. The emphasis on building a robust Digital Public Infrastructure for international trade and streamlining regulatory frameworks will further help businesses in India to innovate and scale.
Additionally, with India’s AI mission taking shape, investing in AI-driven security solutions will be critical for safeguarding digital infrastructure and ensuring long-term resilience. In alignment with the government’s Viksit Bharat vision, we at Elastic remain committed to helping businesses use the power of Search AI to extract real-time insights, enhance security, and drive efficiency. We look forward to working in close alignment with the government’s vision to drive the next phase of India’s digital transformation".
Subhasis Majumdar - Managing Director - Vertiv
“The Union Budget 2025 marks a transformative milestone in India’s journey towards becoming a global leader in manufacturing, technology, and innovation. We welcome the Government’s renewed focus on manufacturing through the National Manufacturing Mission, a key initiative that positions India to lead on the global stage. By focusing on building domestic capacities, integrating into global supply chains, and forming industry facilitation groups, this mission is set to significantly boost businesses and propel the ‘Make in India’ vision forward. Moreover, the integration of Industry 4.0 will unlock new opportunities by harnessing the immense potential of our youth’s skills and talent, laying the foundation for a more competitive, self-reliant India.
The Budget's commitment to transformative reforms, particularly in the power sector, aligns perfectly with India’s ambition to enhance its global competitiveness. These efforts, coupled with a modern regulatory framework and a continued focus on ease of doing business, are vital to creating an environment where innovation and enterprise can flourish. This is a win for domestic production, a leap toward a greener future, and an essential step in establishing India as a global economic powerhouse.
Furthermore, the strategic investment in skilling, AI, and technological innovation is a testament to India’s commitment to nurturing talent and maintaining its edge in the digital revolution. The establishment of National Centres of Excellence for skilling and the PM Research Fellowship scheme for IITs and IISc will ensure India remains at the forefront of global advancements in AI and deep tech. As we move forward, this budget sets the stage for a more dynamic, inclusive, and innovation-driven India—ready to lead the world in the digital and technological age.”
Ashok Chandak, President IESAThe allocation of ₹2,000 crore for the AI Mission is a practical and promising step towards establishing India’s leadership in artificial intelligence. With the GPU program already decided and 10 players shortlisted, we are positioned to make significant advancements. As global discussions on AI dominance intensify, establishing AI supremacy will be crucial for India's strategic interests.
Our future initiatives in agriculture, finance, healthcare, defense, and more will increasingly rely on robust AI capabilities. Leveraging India's vast talent pool, we must prioritize the development of large language models (LLMs), distributed computing, algorithms, and practical applications. The planned GPU installations and enhanced data center infrastructure will play a pivotal role in realizing these goals.
Arun Balasubramanian, VP & MD, India & South Asia, UiPath
“The 500-crore budget allocation for establishing a Centre of Excellence (CoE) in Artificial Intelligence (AI) for education will give a much-needed boost to India’s educational and technological ecosystem. We are also glad to see that five National Centres of Excellence for Skilling will be established to pave the way for youth towards global opportunities. This will be beneficial in driving innovation, raising the quality of education and improving employability in the long run.
The announcement of the DeepTech Fund of Funds and 10K fellowships for advanced research at IITs & IISc will be crucial in building a robust R&D ecosystem in India. The government’s proposal for a national guidance framework and boosting infrastructure development will help accelerate GCCs growth in emerging tier 2 cities, thereby increasing employment and boosting urban development.
Given the rapid evolution of technological advancements, the government’s emphasis on regulations is crucial to encourage their ethical and safe use. With these commitments, India will soon truly be Atmanirbhar (self-reliant) and solidify its position as a global leader in technology and innovations.”
Ramanujam Komanduri, Country Manager, Pure Storage India
"The Union Budget 2025 lays a strong foundation for India’s economic and digital future. The ₹100 billion Fund of Funds for start-ups and the removal of the ‘angel tax’ will boost entrepreneurship and investments, strengthening the innovation ecosystem. The expansion of Global Capability Centers in Tier-2 cities and the establishment of five national skilling centers will unlock regional talent and drive employment. With a strong focus on AI, data infrastructure, and sustainability, the budget creates a favorable environment for digital expansion and modernization. As India accelerates its digital transformation, Pure Storage remains committed to enabling enterprises with cutting-edge, efficient, and future-ready data management solutions."
Puneet Gupta, Vice President & Managing Director, NetApp India/SAARC
“The Union Budget 2025 highlights India’s commitment to innovation, skill development, and entrepreneurship, especially in AI and deep tech. The establishment of a Centre of Excellence in AI for education and the expansion of premier institutes like IITs and IISc, showcase India’s forward-thinking approach in preparing our workforce for the future. The integration of AI and digital skills into mainstream education and related investments will ensure better accessibility to technology and infrastructure. With the government’s support to MSMEs aiding AI adoption and promising investments in building the Centres of Excellence and tinkering labs, India’s tech talent and prowess will be set on a high-growth trajectory.
Consequently, deep technologies like AI will see accelerated adoption making it critical for businesses to modernize data management for mission-critical AI workloads. Through our intelligent data infrastructure solutions, NetApp is committed to help businesses, startups, and professionals leverage AI, cloud, and data solutions. With our focus on data-driven innovation, we are well aligned with the Government’s vision to drive economic growth and global impact through technology.”
Deepak NG, Managing Director, Dassault Systemes India
The Union Budget 2025 takes a decisive step in this direction, with a strategic push towards new age cities, advanced manufacturing, and workforce upskilling. By strengthening Public-Private Partnerships and allocating ₹1.5 lakh crore in interest-free loans to states, the government is laying the groundwork for smarter, more connected urban ecosystems that will serve as the backbone of India’s industrial and digital future. This future cannot be built without a strong manufacturing foundation. The National Manufacturing Mission is a significant move toward self-reliance, accelerating clean-tech and smart manufacturing while ensuring India's deeper integration into global supply chains. Investments in EV batteries, solar PV cells, and high-voltage transmission systems will not only drive sustainability but also open new avenues for innovation and economic expansion.
At the core of this transformation is the need to equip India’s youth with future-ready skills. The expansion of Atal Tinkering Labs to 50,000 government schools, coupled with the ₹500 crore Center of Excellence in AI for Education, highlights a long-term commitment to fostering an innovation-driven workforce. By embedding STEM and AI learning early on, India is ensuring that its young minds are prepared to lead in Industry 4.0, bridging the gap between education and real-world applications. When industries, infrastructure, and human potential evolve together, the result is not just economic growth, but a structural shift towards a resilient, technology-driven India. At Dassault Systèmes, we take pride in contributing to this vision by applying our digital expertise to create future-ready cities, empower industries, upskill the youth and help shape the reality of a Viksit Bharat.
A. Gururaj, Managing Director, Optiemus Electronics
“The Union budget has rightfully given impetus on boosting the purchasing power of a large population with Tax relaxation and support to Agriculture and farming community. We firmly believe that with more money in hands farmers' capability to adopt new technologies like Drones significantly improves and helps grow the market faster. For electronics manufacturing, the relaxation in Basic Custom duties for certain components is a positive step and a continuation of earlier policy initiatives and will boost indigenous manufacturing. We welcome the union budget in letter and spirit as both developments positively impact the Optiemus Group. We look forward to continuing to support the growth of our economy with our efforts.”
Vishak Raman, Vice President of Sales, India, SAARC, SEA and ANZ, Fortinet
‘Viksit Bharat’ lays out a clear road map for developing the skills sets of our future workforce to accelerate growth with skilled labour and meaningful employment. The emphasis on scientific thinking is seeded at the school level with the setting up of Fifty thousand Atal Tinkering Labs to cultivate a culture of Innovation among young minds. This goes all the way to funding ten thousand fellowships at IITs and IISc for technology researchers at the highest level. Five National Centres of excellence in skilling with global expertise is a good example of private public partnership to ensure the best of curriculum for manufacturing. We also now have a fourth Centre of Excellence in Artificial Intelligence for education and this investment clearly outlines we need a pool of talent that will help us to exploit the potential of AI in various fields.
We welcome the 50% duty cut on switches for telecom as this will reduce the cost of secure networking for the service providers. The cybersecurity skills gap remains a major concern as we continue to struggle in securing our digital assets. In the area of cybersecurity training and upskilling we at Fortinet are at the forefront of addressing the skills gap and are closely working with CERT-IN and AICTE where one lakh internship is on offer to professionals interested in starting a career in cybersecurity. IT and Technology Expertise will continue to drive economic growth with the Deep Tech Fund of Funds for start-ups supporting first time entrepreneurs to innovate and ideate new business opportunities. The four powerful budget engines chug along very nicely for Agriculture, MSME, Investment and Export growth taking everyone along on this journey of prosperity and resilience.
Budget 2025: A Catalyst for India’s AI and Deep-Tech Growth
With its strong focus on deep-tech financing, AI education, and startup-friendly policies, Union Budget 2025 lays the foundation for India's transformation into a global AI powerhouse. The ₹10,000 crore investment in startup funding and AI initiatives is set to accelerate technological advancements, attract investments, and position India as a leader in the evolving deep-tech landscape.
The Union Budget 2025 reinforces the government's strategic push to make India a global startup powerhouse by enhancing access to capital, fostering innovation, and empowering entrepreneurs across diverse sectors.
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