– Jeenendra Bhandari
As India prepares for the Union Budget 2025, the startup ecosystem is brimming with expectations. The startup sector, an engine for innovation, job creation, and economic transformation, is hoping for policies that foster an environment conducive to growth, sustainability, and global competitiveness.
Among the key priorities, one is expanding support for private incubators and accelerators. These platforms play a crucial role in nurturing early-stage startups by providing them with mentorship, resources, and a robust network. Government-backed initiatives to boost these private ventures can help create an even more conducive environment for the launch and growth of businesses, particularly in underserved regions. Additionally, reducing the high costs associated with setting up technology infrastructure will be critical in helping startups access and scale cutting-edge tools without prohibitive costs. Given the importance of emerging technologies like AI, blockchain, and IoT, initiatives that encourage enterprise adoption of these technologies will enhance productivity and push the boundaries of innovation.
Public-private partnerships will also be a key area of focus. These collaborations can help create synergies between the government and the private sector, driving innovation in sectors like healthtech, edtech, agritech, and fintech. By streamlining processes and encouraging joint ventures, the government can position itself as an active enabler of startup growth, ensuring startups receive the resources they need to innovate and expand. Furthermore, initiatives focused on promoting grassroots innovation will help build an inclusive innovation ecosystem, particularly in rural areas, where untapped potential exists.
Access to resources is another crucial consideration. In order for startups to thrive, they need not only financial backing but also access to cutting-edge technologies and talent. Policies that create easy access to venture capital, provide incentives for talent development, and improve the quality of research and development can further strengthen the ecosystem.
Moreover, extending tax benefits and simplifying compliance processes will be instrumental in reducing the burden on early-stage companies. Measures such as tax rebates, funding support for R&D, and a reduction in regulatory red tape can help startups scale more efficiently. Improving access to credit is also vital for startups aiming to grow beyond the initial stages, as many face difficulties in securing funding from traditional financial institutions.
Ultimately, the 2025 Union Budget presents a unique opportunity to shape a robust innovation ecosystem. By empowering entrepreneurs and providing them with the necessary tools to scale sustainably, India can solidify its position as a global hub for startups and technology-driven growth.
The author is chairman, Jito Incubation and Innovation Foundation (JIIF)
