NEW DELHI: The Union Budget 2025 has proposed an addition of ₹10,000 crore to the existing Fund of Funds for Startups (FFS), doubling its total corpus to ₹20,000 crore.
Managed by the Small Industries Development Bank of India (SIDBI), the FFS invests in SEBI-registered Alternative Investment Funds (AIFs), which, in turn, provide capital to startups across various sectors.
Jitendra Kumar, Managing Director of the Biotechnology Industry Research Assistance Council (BIRAC), welcomed the government’s visionary move, stating, “This initiative will significantly enhance access to capital for startups, driving innovation and entrepreneurship across various sectors, including biotechnology.”
DBT-BIRAC operates the Biotechnology Innovation Fund-Accelerating Entrepreneurs (AcE) Fund, a ‘Fund of Funds’ designed to provide risk capital for biotech startups, supporting innovation, research, and product development.
Through Alternative Investment Funds (AIFs), the AcE Fund has mobilized over ₹1,200 crore, with BIRAC/DBT committing ₹150 crore to biotech startups and SMEs.
He further added, “The fund’s expanded corpus will provide crucial support to Alternative Investment Funds (AIFs), enabling the growth of cutting-edge startups and empowering them to scale their impactful solutions.
As a key player in fostering biotech innovation, we look forward to leveraging this opportunity to further fuel the growth of India’s biotech ecosystem, enhancing research, development, and commercialization.”
Akshit Bansal, Founder & CEO of Statiq, elaborated on how these allocations can help the EV industry: “The new ₹10,000 crore infusion into the ‘Fund of Funds for Startups’ is a significant step in accelerating entrepreneurship in the EV space.
Such initiatives will encourage innovation in EV charging infrastructure, making charging more accessible and efficient.”
Statiq is a leading EV charging solutions provider in India, operating over 7,000 chargers across 63+ cities. The company offers AC and DC charging solutions, along with a user-friendly app for locating and booking chargers.
He further added, “The 2025 Union Budget lays a strong foundation for India’s EV sector, with the National Manufacturing Mission providing crucial support for clean-tech industries, including EV batteries and high-voltage transmission equipment. This initiative will strengthen domestic manufacturing, reduce import dependence, and foster a self-reliant EV ecosystem under the ‘Make in India’ vision.”
In the Union Budget 2025, Finance Minister Nirmala Sitharaman also announced the full exemption of Basic Customs Duty (BCD) on critical minerals essential for EV battery manufacturing, including cobalt powder, lithium-ion battery waste and scrap, lead, zinc, and twelve other critical minerals.
Additionally, import duties on essential battery production equipment have been reduced. These steps aim to lower battery manufacturing costs, thereby making electric vehicles more affordable for consumers.
The government has also added 35 goods for EV battery production to the list of exempted capital goods, further supporting domestic manufacturing.
These initiatives align with India’s goal of achieving a 30% market share for EVs by 2030, reflecting the government’s commitment to sustainable transportation and reduced dependence on fossil fuels.
Despite these positive developments, concerns remain about the taxation structure for EV charging infrastructure. Industry experts have been advocating for a reduction in the Goods and Services Tax (GST) on charging infrastructure to match the 5% rate applied to EVs. “A revision in the GST structure for charging infrastructure is still needed. Bringing it in line with the 5% GST on EVs will further catalyze growth. With continued policy support, India is poised to build a robust EV charging network, ensuring seamless adoption of electric mobility across the country,” Bansal emphasized.
The 2025 budget’s focus on clean energy and sustainable transportation aligns with India’s broader goal of achieving a 30% market share for EVs by 2030. With strategic policy interventions and industry collaboration, the country is on a steady path toward an electrified future.
