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Finance Minister Nirmala Sitharaman tabled the much anticipated Union Budget for FY 2025-26 on February 1, which also marked a record 8th Budget presentation for the 65-year-old. In a major relief to the middle class, Sitharaman announced that there would not be any tax liability on income upto Rs 12 lakh for salaried persons under the new tax regime and raised the basic exemption from Rs 2.5 lakh to Rs 4 lakh.
Speaking on this front in relation to the future of startups, Swati Bhargava, co-founder of CashKaro and EarnKaro, said, "With the announcement of an additional Rs 10,000 crore for the Fund of Funds for Startups (FoF for Startups) scheme, the government has reinforced its commitment to India’s thriving startup ecosystem. This initiative, now totaling ₹20,000 crore, significantly strengthens the funding landscape for emerging ventures."
"With the FoF for Startups already securing commitments exceeding Rs 9 lakh crore, it’s clear that confidence in India’s startup potential is at an all-time high. This move will accelerate innovation, reduce reliance on foreign capital, and empower homegrown businesses to expand globally," she added.
Expressing her opinion about the tax reforms, she said, "The Union Budget 2025 delivers a major relief to the middle class with the unprecedented increase in the income tax exemption limit to ₹12 lakh—the biggest announcement of the year. This revision, along with the updated tax slabs, will allow individuals to retain more of their earnings, enhance savings, and drive higher investments. By forgoing ₹1 lakh crore in direct taxes, the government has demonstrated a strong commitment to boosting disposable incomes and overall economic growth. These reforms will also accelerate digital savings and financial planning, further strengthening financial inclusion across the country."
Speaking about MSMEs, Rohan Bhargava, co-Founder of CashKaro and EarnKaro, said, "The government’s decision to enhance investment and turnover limits — by 2.5x and 2x, respectively — is a transformative step for India’s MSME sector. With 5.7 crore MSMEs contributing 36 per cent to manufacturing and 45 per cent to exports, this move will empower small businesses to scale, innovate, and drive economic growth."
"By enabling greater access to capital, fostering technological advancements, and creating more employment opportunities, this policy shift strengthens India's position as a global manufacturing hub. Given that MSMEs employ 7.5 crore people, this boost will open new avenues for skilled talent," he further added.
Union Budget 2025 | Nirmala Sitharaman, as Finance Minister, presented her record 8th Union Budget this time. While inflation has burnt a hole in the pockets of 'aam janata', the Modi govt gave income tax relief for those making up to Rs 12 lakh per year in salaried income. Track the latest coverage, live news, in-depth opinions, and analysis only on Deccan Herald. Also follow us on WhatsApp, LinkedIn, X, Facebook, YouTube, and Instagram.