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The Union Budget for 2024-2025 reflects the government’s strong commitment to enhancing various high-impact sectors through strategic financial allocations. Key announcements include a Rs 1000 crore venture capital fund for the space sector and the proposal for 12 industrial parks, aimed at expanding India’s space economy. The abolition of the angel tax and significant funding for research and innovation are set to drive technological advancement and economic growth. The highest-ever defence allocation underscores a commitment to national security and self-reliance, collectively highlighting the government’s holistic approach to fostering innovation, supporting startups, and enhancing the country’s global standing across key industries.
Key sector highlights
Space sector boost:
Rs 1000 Crore VC Fund: Aimed at addressing funding challenges faced by space startups.
12 Industrial Parks: Proposed to potentially include the space sector, boosting the space and satellite manufacturing industry.
Research and Innovation:
Rs 1 Lakh Crore Corpus: For R&D and innovation in sunrise sectors.
Anusandhan National Research Fund: Financial support for private sector research.
Defence sector:
Highest-Ever Allocation: Rs 6,21,940.85 crore, representing 12.9% of the total budget.
Domestic Capital Procurement: Rs 1,05,518.43 crore to promote self-reliance in defence manufacturing.
Tax Reforms:
Abolition of Angel Tax: Encouraging more investment and innovation in startups.
Corporate Tax Reduction: From 40% to 35%, attracting foreign investment.
The Union Budget 2024-2025 aims to boost economic growth and promote technological advancements across various sectors. Key measures, such as significant funding for the space sector, defence allocation, tax reforms, and support for research and innovation, collectively foster a supportive environment for startups and established industries alike. These initiatives are poised to enhance India’s global standing and drive sustained economic growth.