New Delhi: Union Minister for Finance & Corporate Affairs Nirmala Sitharaman chairs the eighth pre-budget consultation in New Delhi, on Jan. 6, 2025.

With Budget FY2025-26 scheduled to be presented on February 1, here is a look at some of the recently launched schemes, older schemes with significantly reduced funding, schemes under the Production Linked Incentive (PLI) umbrella, and those promoting electric mobility in India.

Table 1 shows a select list of recently launched schemes and their allocations.

It includes the scheme for installing solar rooftops which was launched in 2024 and allocated ₹6,250 crore in FY25(BE). Other schemes are the Rashtriya Gram Swaraj Abhiyan to re-imagine panchayati raj institutions, the scheme to upgrade Industrial Training Institute (ITIs) and the controversial PM Vishwakarma scheme, which aims to nurture the guru-shishya parampara or family-based practice of traditional skills. Schemes with the goal of promoting AI in India such as the INDIA AI mission and Centres of Excellence for AI are also a part of the list.

Table 2 shows a select list of older schemes, allocations for which have significantly reduced over the years.

Major schemes include the Regional Connectivity Scheme, from unserved and underserved airports, and the Smart Cities Mission to enhance the quality of life in 100 cities. The promotion of the digital payments scheme did not get any allocation in the last Budget. Other schemes include Digital India and Startup India.

Table 3 shows the complete list of schemes which come under the Production-Linked Incentive (PLI) umbrella.

The largest of them is the successful electronics and IT hardware scheme, with the most recent allocation touching ₹6,200 crore. 

Table 4 shows the list of schemes which promote electric mobility, with the FAME scheme being the biggest in terms of allocations.

Source: Union Budget documents

New Delhi: Union Minister for Finance & Corporate Affairs Nirmala Sitharaman chairs the eighth pre-budget consultation in New Delhi, on Jan. 6, 2025.

With Budget FY2025-26 scheduled to be presented on February 1, here is a look at some of the recently launched schemes, older schemes with significantly reduced funding, schemes under the Production Linked Incentive (PLI) umbrella, and those promoting electric mobility in India.

Table 1 shows a select list of recently launched schemes and their allocations.

It includes the scheme for installing solar rooftops which was launched in 2024 and allocated ₹6,250 crore in FY25(BE). Other schemes are the Rashtriya Gram Swaraj Abhiyan to re-imagine panchayati raj institutions, the scheme to upgrade Industrial Training Institute (ITIs) and the controversial PM Vishwakarma scheme, which aims to nurture the guru-shishya parampara or family-based practice of traditional skills. Schemes with the goal of promoting AI in India such as the INDIA AI mission and Centres of Excellence for AI are also a part of the list.

Table 2 shows a select list of older schemes, allocations for which have significantly reduced over the years.

Major schemes include the Regional Connectivity Scheme, from unserved and underserved airports, and the Smart Cities Mission to enhance the quality of life in 100 cities. The promotion of the digital payments scheme did not get any allocation in the last Budget. Other schemes include Digital India and Startup India.

Table 3 shows the complete list of schemes which come under the Production-Linked Incentive (PLI) umbrella.

The largest of them is the successful electronics and IT hardware scheme, with the most recent allocation touching ₹6,200 crore. 

Table 4 shows the list of schemes which promote electric mobility, with the FAME scheme being the biggest in terms of allocations.

Source: Union Budget documents

Image used for representation purpose only.

Although the Interim Budget for 2024-25 did not propose any changes in existing taxation, startups are offered certain tax benefits by way of extension of exemptions.

According to the Budget document, certain tax benefits to startups and investments made by sovereign wealth or pension funds as also tax exemption on certain income of some International Financial Services Centre (IFSC) units are expiring on March 31, 2024.

However, Finance Minister Nirmala Sitharaman proposed to extend the exemption expiry date by a year to March 31, 2025, to provide continuity in taxation and trigger growth in the sector.

This gesture along with initiatives such as the PM Mudra Yojana, Fund of Funds, Startup India, and Startup Credit Guarantee schemes highlighted the government’s proactive stance in supporting entrepreneurial aspirations and generating employment for the youth, according to industry players.

‘Fostering robust ecosystem’

The Budget’s emphasis on the growth and global competitiveness of startups and MSMEs reflects the government’s steadfast commitment to fostering a robust ecosystem. Adequate finances, relevant technologies, and targeted training showcase a comprehensive approach towards empowering MSMEs, according to K.R. Sekar, Partner, Deloitte India.

“As we anticipate the positive impact of these measures, the next full budget will likely unveil more concrete steps in this direction, further shaping the landscape for startups and MSMEs and the broader economy,” Mr. Sekar said.

Sandeep Agrawal, Director and Co-founder, at TeamLease Regtech, a compliance management firm, was of the opinion that it was about receiving support from all fronts — technology, research and development, and financial assistance.

“The vision of allowing entrepreneurs to compete globally is a commendable one. Digital Payments Index has been an instrumental tool in the formalisation of the economy and giving the underbanked and unbanked access to credit and financial services,” Agrawal said.

According to the Finance Minister, under the PM Mudra Yojana, the government has sanctioned 43 crore loans aggregating to ₹22.5 lakh crore for entrepreneurial aspirations of the youth.

“The Budget exhibited a well-balanced and truly promoted development of the startup ecosystem, the youth and the country. The implementation of PM Mudra Yojana, the Startup India, and the Startup Credit Guarantee schemes signifies a concerted effort to facilitate the youth a seamless initiation of entrepreneurial journey,” said Darshil Shah, Founder and Director, TreadBinary, an IT startup.