Budget 2014: Startups get 10,000 cr outlay to encourage entrepreneurship

Finance Minister Jaitley paid special attention to India’s burgeoning startup space. Apart from setting aside funds for startups, the minister earmarked special sums for innovators and entrepreneurs from backward classes.

Here’s what Jaitley has announced for startups in Budget 2014:

Admitting that promotion of entrepreneurship and startup companies remains a challenge, Jaitley announced a Rs 10,000 cr fund to act as catalyst to provide equity, risk capitals for startups.

Jaitley set aside Rs 200 crore to encourage startups by youth from scheduled castes and tribes.

Rs 200 crore has also been allocated for a rural startup village.

Bankruptcy framework, nationwide acceleration and incubation programs will be set up to assist entrepreneurs and startups.

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The FM also made allocations for industrial corridors to help manufacturing.

There is more. A central network is announced to promote innovation at an outlay of Rs 200 crore.

MSMEs are the backbone of the economy, Jaitley said. He then announced Rs 10,000 crore corpus specially for venture capital funding for MSMEs.

He proposed revival of MSMEs through a committee to examine and report in three months.