Nirmala Sitharaman announces major initiatives for startups and AI development
The government is also planning to introduce a national framework for global capability centres, developing IT hubs in Tier-2 cities
Visakhapatnam: The finance minister announced three major initiatives in the sector of start-ups, IT and AI technology. She announced that Rs 10,000 crore has been allocated to support start-ups, financial support for 10,000 fellowships at institutions like IITs and IISc and the establishment of a centre of excellence in AI for education with a Rs 500 crore outlay.
Nirmala Sitharaman also announced that the government has extended the tax exemption period to five years for start-ups that incorporated before April 1, 2030. Further, a new Deep Tech Fund of Funds will be launched to support next-generation AI start-ups.
The government is also planning to introduce a national framework for global capability centres, developing IT hubs in Tier-2 cities.
Commenting on these developments, Professor P. Mallikarjuna, Dean of Trans-Disciplinary Research at Andhra University, told Deccan Chronicle that though the Rs 10,000 crore allocation to support start-ups looks promising, it needs additional strengthening, particularly in deep tech and infrastructure.
“While Tier-2 cities are already developing, we need to prioritise Tier-2 cities," he said.
While sharing his experience as a mentor for start-ups like Taramandal (space technology) and Technorema (EV and medical instrumentation), he highlighted challenges where his team had travelled to Hyderabad to access a 3D printer and emphasised the need for better infrastructure.
Ravi Eswarapu, CEO of an incubation hub, said the Central government has identified 27 focus sectors under the Atmanirbhar scheme, which will provide low-cost loans.
He emphasised the extension of Section 80-IAC benefits until April 1, 2030, calling it a major advantage for start-ups.
He said the introduction of a deep tech fund of funds is another highlight, which he believes will catalyse growth in emerging sectors like semiconductors, artificial intelligence and other next-generation technologies.
He said, “We need to create a long-term pipeline for children at the school level, as it shouldn’t be seen as an option for career choice.”
He emphasised that social entrepreneurship would receive a boost from these initiatives. With reference to Visakhapatnam, he said the defence, railways and food are the top three priorities in the Budget, indicating a significant increase in funding for the city.
