Jaipriya K S, Content Writer, siliconindia

Most expected Union Budget 2025 is a few days away. More than any other vertical, the budget is eagerly foreseen by the Indian startup community as it holds an immense impact on Indian startups. India is standing only after the US and China in the global startup scene by securing its position as the world’s 3rd largest startup ecosystem with over 159,000 registered startups. By identifying the rising scale of startups in numbers as well as growth in recent years, the Indian government’s emphasis on the country to empower it as a global startup hub has been central. During last year's budget, the abolition of the Angel tax was a major milestone for investors and startups. In such a case, the upcoming union budget is going to be a pivotal session for startups. So let’s explore the expectations from startups on Union Budget 2025 focusing on contributing to overall economic development.

Hoping to witness the best Startup-rise!

Simplified regulations and measures: One of the key expectations of startups is a simplified and streamlined tax structure such as revised corporate tax rates, loss considerations, and, extended tax holidays. The present compliance burden is a major challenge for budding early-stage startups. Especially in the areas of cross-border payments to enable unified global trade, startups, and MSMEs are looking forward to simplified transaction processes that allow Indian startups to sell and launch their products and services without complicated compliance and red tape regulations. A well-streamlined and simplified tax regime would cut down the operational costs for startups and enable them to focus on core innovations.

Robust Infrastructure development: Startups are widely looking forward government to announce considerable investments for infrastructure development focusing on startups. Developing startup hubs with cutting-edge facilities, co-working spaces help desks, and access to essential services can suggestively reduce operational costs and create a nurturing environment for growth and innovation. Mainly, an improved infrastructure system will attract more domestic and global investors, and empower aspiring entrepreneurs with need financial support.

Fostering Public-private partnerships: In the realm of commercialization and innovation, strong public-private partnerships are vital. Incentives for research and development focusing on emerging technologies and support for PPPs can greatly accelerate development and fortify the position of India as a global startup hub. Startups are overseeing that the government should boost collaborations between newly started firms and established industrial players to foster technological developments and leverage competitive solutions.

Leela Kaza, Founder & Co-CEO of Bounteous x Accolite says, “This budget is a chance to expand innovation hubs in smaller cities, foster public-private partnerships, and enhance access to advanced infrastructure.”