Startup news and updates: Daily roundup (February 1, 2025)

YourStory presents the daily news roundup from the Indian startup ecosystem and beyond. Here's the roundup for Saturday, February 1, 2025.

Saturday February 01, 2025 , 3 min Read

Latest news

FM announces new tax reforms; benefits for incomes up to Rs 12 LPA

There’s finally something to cheer for India’s vast middle class. In an effort to boost consumption and reduce the salaried population’s tax burden, Finance Minister Nirmala Sitharaman announced a slew of new tax reforms in the FY26 Union Budget presented today.

In one of the most notable changes, those earning up to Rs 12 lakh per annum (LPA) need not pay any income tax under the new tax regime from the next financial year (FY26).

This will effectively be applicable to those with a net income of Rs 12.75 Lakh, as the new regime offers a standard deduction of Rs 75,000, announced the FM adding that this will significantly increase people’s disposable incomes and boost consumption.

Union Budget 2025 announces provisions to boost clean tech manufacturing

The Union Budget 2025 shed light on India’s climate goals with the Finance Minister Nirmala Sitharaman announcing provisions to encourage manufacturing of clean technology in the country.

The FM said steps will be taken to improve domestic value addition in the clean technology sector and build India’s ecosystem for solar photovoltaic cells, electric vehicle batteries, motors and controllers, and wind turbines, among others.

These announcements come amidst India’s goals to achieve 50% of its installed electricity capacity from non-fossil fuels by 2030, alongside a 45% reduction in emissions intensity compared to 2005 levels.

Rs 10,000 crore Fund of Funds for startups in Budget 2025

The Finance Minister has said that the government plans to launch a new Rs 10,000 crore Fund of Funds to support startups, providing a significant boost to entrepreneurship in India, which currently ranks as the world's third-largest startup ecosystem.

“The Alternative Investment Fund (AIFs) for startups have received commitments of more than Rs 91,000 crore. These are supported by the fund of funds set up with the Government of India’s support of Rs 10,000 crore. Now, a new fund of funds with an expanded scope and a fresh contribution of another Rs 10,000 crore will be set up,” said Sitharaman during her Budget Speech on February 1.

The FM’s decision to launch a new FFS comes amid a growing emphasis on mobilising domestic capital for startup investments, particularly in the face of rapidly changing global macroeconomic conditions.