Commerce Ministry To Request Increased Funds For Startups In 2024-25 Budget
The seed fund, launched in April 2021, was allocated over four years to support eligible startups through incubators nationwide
The Commerce and Industry Ministry is expected to seek increased funding for startups in the upcoming Budget, which will be announced by the new government in July, according to media reports.
The current seed fund scheme, launched in April 2021 with a corpus of Rs 945 crore, is set to conclude in 2025. According to media reports, the ministry is considering proposing a new scheme with a similar structure to continue providing financial assistance to startups for proof of concept, prototype development, product trials, market-entry, and commercialisation.
The seed fund was allocated over four years to support eligible startups through incubators nationwide. Access to capital is crucial for entrepreneurs in the early stages of their ventures, often determining the success or failure of startups with promising business ideas.
Additionally, the ministry is anticipated to propose a dedicated policy for deep tech startups. Deep technology, which is based on advanced scientific and technological breakthroughs, has the potential to address some of India's most significant societal challenges due to its disruptive nature.
The previous government placed a strong emphasis on promoting startups, launching the Startup India initiative on January 16, 2016. This initiative included an action plan with 19 items focusing on areas such as simplification and support, funding and incentives, and industry-academia partnerships and incubation, all aimed at creating a dynamic startup ecosystem in the country.
