The government also announced a five-year period of incorporation extension for start-ups for tax benefits, till April 1, 2030
Hyderabad: The expansion of the Fund of Funds for Start-ups (FFS), announced in the Union Budget on Saturday, is expected to boost innovation, support job creation, and strengthen the startup ecosystem.
Speaking to Deccan Chronicle, Sundeep Kumar Makthala, chairman and founder of TConsult, said the additional contribution from the government is a huge boost for start-ups.
“By increasing grants and the availability of funds, more start-ups will have access to the much-needed capital, which will help them scale operations and develop products and services”, he added.
The Budget has also proposed a scheme for first-time entrepreneurs, focusing on women and individuals from SC and ST communities and offering term loans of up to Rs.2 crore each and online capacity-building programmes.
The government has also allocated Rs.20,000 crore to implement private sector-driven research, development and innovation initiative, announced in the July 2024 budget.
The government also announced a five-year period of incorporation extension for start-ups for tax benefits, till April 1, 2030.
P. Chandrakanth, a tech-based startup’s CEO, said “We are very happy from the government initiatives. This greatly reduces our financial problems. The Deep Tech Fund of Funds initiative will help firms like mine, which are tech-oriented.”
