10,000 crore startup fund and more in Union Budget 2014
The year 2014 has already shown signs of a matured startup ecosystem in India with great investments and M&A's taking place in first half of the year. In addition to it, today Finance Minister Arun Jaitley has presented the most favorable budget for startups till date in the August house.
Before getting on to read the budget, the finance minister mentioned that his predecessor has set a tough task ahead of him with a fiscal deficit of over 4% and continuous low GDP for last two years.
Here are the highlights of Union Budget 2014 and what it's offering for startups and SME's :
- 10,000 crore startup fund for new businesses
- National accelerators & incubators for startups to be setup
- 100 crore agri-infra fund
- Definition of SME to be revised for high capital ceiling
- Rs. 100 Crore for Startup Village entrepreneurship for rural population
- Rs. 200 Crores for scheduled caste entrepreneurs
- Rs. 100 crore for setting up virtual classroom for online courses
- Direct Taxes : no tax rates change but increase in non-taxable personal income limit by INR 50000 i.e. from 2L to 2.5 L
- Young Leaders Programme to be set up with an investment of INR 100 crores
- Digital India programme to provide broadband connectivity in rural areas to increase government transparency
- Rs. 500 crores to set up software services in rural areas
- Funds to stimulate biotech in India
- INR 1000 crores for rail connectivity in North-East
- 500 cr for water reforms in Delhi and construction of Renuka Dam
- Setting aside INR 12 Lakh crore for non planned expenditure covering all essential activities (including fertizer subsidies and capital expenditure of armed forces)
- A national centre for Himalayan studies to be set up Uttarakhand
- 100 crores – NE organic farming
- 200 crores for upgrading stadiums
The post will be updated regularly.
Related reads: IT initiatives from the Rail Budget 2014-15