The Union Minister for Finance & Corporate Affairs, Nirmala Sitharaman proposed to create a corpus of Rs 1 Lakh Crore to boost private investment in sunrise technologies, while presenting the Interim Budget 2024-25 in Parliament today.
The corpus will be established with a 50 year interest free loan. It will provide long-term financing or refinancing with long tenors and low or nil interest rates.
Minister Sitharaman also proposed a new scheme to be launched for strengthening deep-tech technologies for defence purposes and expediting ‘atmanirbharta’.
Deep tech encompasses a spectrum of cutting-edge technologies such as artificial intelligence, machine learning, blockchain, and biotechnology, among others. It refers to those startups whose business model is based on high tech innovation in engineering, or significant scientific advances.
Pointing out that new age technologies and data are changing the lives of people and businesses, the Finance Minister said that they are also enabling new economic opportunities and facilitating provision of high-quality services at affordable prices for all, including those at ‘bottom of the pyramid’.
“We appreciate the thoughtful budget announcements for India, marking a significant step towards financial inclusivity and innovation. The allocation of ₹1 lakh crore for long-term, interest-free loans not only fuels innovation but also promotes accessibility to funds, fostering private sector research in emerging areas. The focus on deep tech startups in the defence sector and the extension of tax benefits until March 2025 for startups, sovereign wealth, and pension funds signify a government committed to supporting growth and resilience. The prolonged tax benefits indicate a steady commitment to creating a conducive environment for startup development and sustainable investments. Overall, the budget underscores a strategic approach towards long-term economic resilience and innovation,” said Bipin Preet Singh, Co-founder and CEO, MobiKwik.
Finance Minister Sitharaman in her Budget speech highlighted ‘innovation’ as the foundation of development and said that this would be a golden era for our tech-savvy youth.
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She said that for our tech savvy youth, this will be a golden era and there is a need to have programmes that combine the powers of our youth and technology.
“This will encourage the private sector to scale up research and innovation significantly in sunrise domains. We need to have programmes that combine the powers of our youth and technology,” the Finance Minister stated.
“The government announces a golden era for tech-savvy enterprises, setting a corpus of Rs. 1 lakh crore with a 50-year interest-free loan for long-term financing/refinancing. This strategic financial initiative, featuring low to nil interest rates, aims to scale up the private sector’s research and development efforts significantly in sunrise domains. Notably, this infusion is set to fortify deep tech technologies,” said Siddhesh Mehta, Research Analyst, Samco Securities.
Stressing that Research and Innovation will catalyze India’s growth, generate employment and lead to development, Nirmala Sitharaman said that Prime Minister Lal Bahadur Shastri gave the slogan of “Jai Jawan Jai Kisan” and Prime Minister Atal Behari Vajpayee made that “Jai Jawan Jai Kisan Jai Vigyan”.
“Prime Minister Modi has furthered that to “Jai Jawan Jai Kisan Jai Vigyan and Jai Anusandhan”, as innovation is the foundation of development,” she stated.
GIFT IFSC to create gateway for Global Capital
Union Finance Minister Nirmala Sitharaman said that the digital public infrastructure (DPI), a new ‘factor of production’ in the 21st century, is instrumental in formalisation of the economy.
She said that strengthening of the financial sector has helped in making savings, credit and investments more efficient.
The Finance Minister further added that GIFT-IFSC and the unified regulatory authority, IFSCA (International Financial Services Centres Authority) are creating a robust gateway for global capital and financial services for the economy.
“Digital infrastructure and technology emerge as pivotal factors of production, expanding beyond traditional elements. The focus on strengthening the financial sector, including support for GIFT City to attract foreign investments, sets the stage for economic resilience,” said Vikas Gupta, CEO & Chief Investment Strategist at OmniScience Capital.
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The Union Finance Minister said that with sanctioning of 43 crore loans aggregating to Rs 22.5 lakh crore under PM Mudra Yojana, entrepreneurial aspirations of our youth has been unlocked.
“Besides that, Fund of Funds, Start Up India, and Start Up Credit Guarantee schemes are assisting our youth and they are also becoming rozgardata”, she added.
Stating that opportunities for India at the global level are expanding, Minister Sitharaman said, “India is showing solutions through innovation and entrepreneurship of its people.”
Empowering the Youth
The Minister stressed that our prosperity depends on adequately equipping and empowering the youth.
“The Government stands committed to strengthening and expanding the economy with high growth and to create conditions for people to realise their aspirations,” she stated.
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While highlighting the success of Skill India Mission, Minister Sitharaman informed that under the mission 1.4 crore youth have been trained, 54 lakh youth were upskilled and reskilled, and 3000 new ITIs were established.
She further informed that the recently launched PM Vishwakarma Yojana provides end-to- end support to artisans and craftspeople engaged in 18 trades.
