Commerce Ministry Considers Seeking More Start-Up Funds In Upcoming Budget

New Delhi, Jun 10 (KNN) The Ministry of Commerce and Industry is evaluating the possibility of requesting additional funds to support start-ups in the forthcoming Union Budget for the fiscal year 2024-25, according to a government official. This move is aimed at fostering innovation across the nation.

The new administration is expected to present the Budget in July. The Seed Fund Scheme, launched in April 2021 with a corpus of Rs 945 crore, is set to conclude in 2025.

The ministry may propose a similar initiative to provide financial assistance to start-ups for proof of concept, prototype development, product trials, market entry, and commercialisation.

Officials highlight the critical importance of easy access to capital for entrepreneurs during the early stages of enterprise growth, acknowledging that the availability of funds during this phase can be a make-or-break situation for start-ups with promising business ideas.

Currently, there are over 117,000 government-registered start-ups in the country, which are eligible for income tax and other benefits. These recognised start-ups have reportedly created more than 1.24 million direct employment opportunities.

Additionally, the ministry is expected to propose a dedicated policy framework for deep tech start-ups.

Deep technology refers to innovations rooted in advanced scientific and technological breakthroughs, with the potential to address some of India's most pressing societal challenges due to their disruptive nature.

Promoting start-ups was a key focus area for the previous government, which introduced the Start-up India initiative on January 16, 2016, along with an action plan comprising 19 items spanning simplification and handholding, funding support and incentives, and industry-academia partnerships and incubation. These efforts aimed to cultivate a vibrant start up ecosystem within the country.

(KNN Bureau)