Union Budget 2025: Start-ups Get a Fresh ₹10,000 Crore Corpus, Tax Benefits

The Union Budget 2025 announced a renewed ₹10,000 crore Fund of Funds (FoF) to support Indian startups, expanding its scope to include sectors like AI, robotics, and clean energy. 

The initial FoF launched in 2016 mobilized ₹91,000 crore in investments. Finance Minister Nirmala Sitharaman also extended the eligibility period for tax benefits under Section 80-IAC of the Income Tax Act by five years.

This allows startups incorporated until April 1, 2030, to avail of incentives like a three-year tax holiday and exemptions from capital gains tax. This move aims to provide crucial growth capital for early-stage and deep-tech ventures.