As Finance Minister Nirmala Sitharaman prepares to unveil Budget 2025, there is a strong consensus among investors and the startup community on the need for reforms that streamline tax compliance and incentivize sectors such as AI, electric vehicles, and music tech.
Stakeholders in the startup ecosystem are also calling for policies that make it easier to access capital and navigate intellectual property issues, all while empowering the growth of India’s dynamic creator economy.
Read the expectations in detail:
Swati Bhargava, Co-Founder, CashKaro and EarnKaro
As we approach Budget 2025, We are anticipating that the government will continue its support for the startup ecosystem through measures like extending tax benefits, including the carry-forward of losses and tax exemptions. This will not only boost innovation but also create employment opportunities.
Targeted support for deep-tech sectors such as artificial intelligence, biotechnology, and renewable energy will be crucial in positioning India as a global innovation hub.
Raja Singh Bhurji, CEO and Incubation Director of The StepUp Ventures
The government’s commitment to accelerating startups has been evident in recent years. The Union Budget 2025-26 is poised to further strengthen India’s startup ecosystem, a vital driver of economic growth and innovation. Key measures, including a focus on emerging technologies like AI, IoT, and quantum computing, can foster a supportive environment for entrepreneurship. Simplifying the tax system and enhancing domestic venture capital competitiveness will attract more investors and fuel growth.
Additionally, easing compliance burdens for early-stage startups will offer much-needed flexibility. We are optimistic that Budget 2025 will bolster the EV ecosystem by increasing incentives under the FAME-II scheme, lowering GST on EV components, and promoting localized manufacturing of batteries and charging infrastructure.
Gaurav Dagaonkar, Co-founder & CEO, Hoopr
Last year’s budget introduced several encouraging measures for the startup ecosystem, such as the extension of tax benefits for startups, a focus on developing digital infrastructure, and the establishment of a ₹1 lakh crore corpus for low-interest loans to startups. Building on this momentum, I am eagerly anticipating the upcoming Union Budget.
For music-tech startups like ours, initiatives that further simplify and strengthen intellectual property regulations, provide access to affordable capital, and incentivize innovation in areas like AI and music technology will be crucial. We need a policy framework that not only supports the growth of India’s ₹10,000 crore creator economy but also fosters responsible innovation and empowers creators to thrive.
I am hopeful that the upcoming budget will continue to create a conducive environment for the music-tech sector to flourish and contribute significantly to India’s economic growth.
Maninder Singh Nayyar, CEO & Founder, CEF Group
The Union Budget 2025 is a crucial opportunity for the Indian startup ecosystem to gain the momentum it needs to thrive. Startups are the backbone of innovation and the right support—be it through extended tax holidays, simplified compliance, or better funding access—can make a world of difference.
For startups in the sustainability space, like ours, the stakes are even higher. These ventures are tackling some of the most pressing challenges of our time, from renewable energy to waste management, and need tailored incentives to scale their impact.
I believe targeted measures for research and development, along with a push for streamlined processes, can unlock immense potential for startups across sectors. If this budget focuses on sustainability and innovation, it won’t just help startups grow—it’ll help build a better future for all.
Sumit Singh, CEO & Co-founder, DashLoc
As the Union Budget 2025 approaches, it is crucial for the government to focus on bolstering the startup ecosystem by reducing regulatory complexities, which often hinder growth. Establishing dedicated IT software parks can provide startups with essential infrastructure and foster innovation.
Additionally, simplifying access to loans through banks and government-backed schemes will ensure that startups can secure funding more efficiently, enabling them to scale and contribute significantly to the economy. These measures will create a conducive environment for startups to thrive and position India as a global leader in innovation.
Kundan Shahi, CEO & Founder, Legal Pay
Budget 2025 presents a crucial chance to strengthen the startup ecosystem, particularly in fintech. Extending the tax holiday under the Startup India initiative or reducing corporate tax rates for startups can provide much-needed financial relief. Encouraging the adoption of advanced technologies like AI and blockchain and supporting digital payment infrastructure will foster innovation. Additionally, simplifying GST compliance and introducing funding-friendly policies will empower startups to scale efficiently. Startups are pivotal to India’s economic progress, and focused measures in this budget can propel their growth and solidify India’s position as a global fintech leader.