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Union Minister Dr Jitendra Singh expressed satisfaction over the Union Budget 2024-25. He highlighted the bold and innovative proposals aimed at boosting startups and the startup ecosystem. He described the budget as exceptional and empowering, with measures that will have a significant impact on employment, skilling, MSMEs, and the middle class, ensuring a brighter future for all sectors of society.
These include planning a fivefold increase over the next decade. Additionally, a Rs 1,000 crore (approx. US$ 120 million) Venture Fund for Space Startups has been earmarked, further strengthening India’s startup ecosystem.
The Union Budget 2024-25 abolished the Angel Tax for investors, a move he believes will significantly boost the Indian startup ecosystem. Employment and skilling receive a major boost through the Prime Minister’s package of five schemes, designed to provide innovative initiatives for employment and skilling opportunities for 4.1 crore youth over five years. The first scheme under the PM’s package will offer one month’s wage to all new workforce entrants.
The fifth scheme focuses on providing internship and apprenticeship opportunities to youth in the top 500 companies, aiming to benefit 1 crore youth over five years. This initiative is part of a broader effort to promote a culture of skilling and apprenticeships.
Nearly 20 lakh youth will be skilled over five years through various initiatives, including the upgrade of 1,000 Industrial Training Institutes (ITIs) in collaboration with state governments and industry. This effort will enhance skill development through a hub-and-spoke model.
The Model Skill Loan Scheme will be revised to facilitate guaranteed loans up to Rs 7.5 lakh (approx. US$ 9,000), aiding approximately 25,000 students annually. Additionally, the limit of Mudra loans will be increased to Rs 20 lakh (approx. US$ 24,000) from the current Rs 10 lakh (approx. US$ 12,000) for those who have successfully repaid previous loans under the ‘Tarun’ category, promoting entrepreneurship.
The budget also announces the setting up of Bharat Small Reactors in partnership with the private sector and collaboration in the research and development of Bharat Small Modular Reactors, recognising the role of nuclear energy in ensuring energy security.
A significant allocation of Rs 1 lakh crore (approx. US$ 12 billion) has been made for the Anusandhan National Research Foundation (NRF) to spur private sector-driven research and innovation on a commercial scale. Additionally, a venture capital fund of Rs 1,000 crore (approx. US$ 120 million) will be established to expand the space economy fivefold in the next decade.
The allocation to the Department of Scientific and Industrial Research (DSIR) has been increased from Rs 5,746.51 crore (approx. US$ 690 million) in 2023-24 to Rs 6,323.41 crore (approx. US$ 760 million) in 2024-25, marking a 10.03% increase. Of this, Rs 6,265.80 crore (approx. US$ 750 million) has been earmarked for the Council of Scientific and Industrial Research (CSIR). Dr Singh also highlighted the allocation of more than Rs 3 lakh crore (approx. US$ 36 billion) for women’s welfare schemes, promoting women-led development.
The budget introduces several initiatives aimed at boosting employment, skilling, and MSMEs. Among these are three key schemes specifically designed as ‘Employment Linked Incentives’. A new centrally sponsored fourth scheme was announced. This initiative, in collaboration with state governments and industry, aims to skill 20 lakh youth over a five-year period.
Additionally, 1,000 Industrial Training Institutes (ITIs) will be upgraded in a hub-and-spoke arrangement with a strong focus on outcome orientation, ensuring that the skilling programs meet industry needs and enhance employability.
These measures, part of a broader strategy to bolster economic growth and support various segments of society, underscore the government’s commitment to creating a robust and inclusive economy.
