In the 2025 Union Budget, Finance Minister Nirmala Sitharaman announced an additional ₹10,000 crore infusion into Alternate Investment Funds (AIFs), which already received the same amount from the government. AIFs support high-risk startups seeking investments from wealthy individuals. A new Fund of Funds for deep tech firms is also being considered. The tax benefit under Section 80-IAC for startups, allowing a three-year profit tax exemption, will be extended by five years. Additionally, loan availability for startups will increase from ₹10 crore to ₹20 crore, with a reduced guarantee fee of 1% for loans in 27 priority sectors.

Read the full article here