Post-Budget Perspective: The Policies Introduced Will Boost Deeptech, Hardware Startups
The budget puts a strong emphasis on sustainability and clean energy adoption. Schemes like Viability Gap Funding for wind energy, incentives for e-vehicles and charging infrastructure will accelerate the transition to EVs and spur innovation in this space. The outlay for the National Green Hydrogen Mission has been increased substantially to drive the adoption of green fuels.
These policies will boost deeptech and hardware startups working in the domains of energy and sustainability.
Changes in FDI policy to promote foreign investment via bilateral treaties and extension of tax benefits will make India an attractive investment destination for global capital and sovereign wealth funds. This augurs well for capital-intensive deeptech startups requiring long-term patient capital.
Further, the proposal to work with States to expedite the development of iconic tourist centers presents opportunities for agritech and rural startups to enable local entrepreneurship.
On the social front, it is heartening to see extensive allocations towards women empowerment spanning finances, skills and health. 30 crore MUDRA loans to women entrepreneurs exhibits the government’s commitment to foster women leadership.
With higher enrollment in STEM courses, there is tremendous potential for women founders in technology. As an investor, I look forward to seeing more women-led startups, especially in deeptech, catalyzed by these policies.
The budget makes agriculture a key priority with comprehensive schemes for dairy development, oilseeds production, aquaculture productivity and food processing.
The substantial increase in allocation for the PM Formalisation of Micro Food Processing scheme will incentivize agritech and food processing startups. Growth in this sector will boost rural incomes creating positive ripple effects across the economy.
Overall, the budget sets the stage for sunrise sectors critical for India’s Amrit Kaal with a sharp focus on sustainability, healthcare access, gender inclusion and agricultural development.
The government’s unwavering support for innovation and risk-taking combined with long-term patient capital for deeptech will unleash entrepreneurship and spur the startup economy towards USD 1.5 trillion GDP by 2047.
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