Finance Minister Nirmala Sitharaman Union Budget 2026-27 contains several provisions specifically targeting startups, technology companies, and the broader innovation ecosystem. Here is a comprehensive breakdown of every relevant initiative.
Key Takeaways
- Rs 20,000 crore SME Growth Fund announced
- IndiaAI Mission gets Rs 3,000 crore allocation
- Tax holiday for startups extended to 2030
- Deep tech manufacturing incentives introduced
Funding and Credit Initiatives
SME Growth Fund – Rs 20,000 Crore
The SME Growth Fund provides subordinated debt to high-growth startups and SMEs with lower collateral requirements and longer repayment tenures.
Credit Guarantee Expansion
MSME credit guarantee limits enhanced from Rs 5 crore to Rs 10 crore, with collateral-free loans now available up to Rs 5 crore.
Technology and AI Initiatives
IndiaAI Mission – Rs 3,000 Crore
The IndiaAI Mission allocation supports AI compute infrastructure, Large Language Models for Indian languages, and startup incubation.
Tax Benefits
Startup Tax Holiday Extension
The Section 80-IAC tax holiday extended to startups incorporated by March 31, 2030.
Angel Tax Abolition
Complete removal of angel tax on startup investments, addressing a long-standing grievance of the startup community.
Related: India Startup Ecosystem Crosses 630,000 Startups