Keeping in line with Prime Minister Narendra Modi’s narrative, of “Jai Javan Jai Kisan Jai Vigyan and Jai Anusandhan,” Union Finance Minister Nirmala Sitharaman today announced a Rs 1 trillion fund to finance research in technology during her budget presentation. This initiative comes at a crucial time when tech start-ups struggle to secure funding from private equity and venture capital firms.
Here are some of the key announcements that will prove beneficial for our tech-savvy youth:
Rs 1 Trillion innovation fund
The Finance Minister introduced establishing a Rs 1 trillion fund with a fifty-year interest-free loan. This fund called the Powering Innovation, Research & Development (R&D) Anusandhan National Research Fund, is designed to provide long-term financing or refinancing with low or no interest rates. The primary goal is to significantly boost private sector research and innovation, particularly in emerging fields. “For our tech-savvy youth, this will be a golden era,” Sitharaman said in her speech.
Focus on basic research and prototype development
The R&D Anusandhan National Research Fund will support basic research and prototype development, with a substantial financing pool dedicated to encouraging private sector-driven research on a commercial scale. This move is expected to catalyse advancements in technology and innovation, positioning India as a leader in these areas.
Venture capital fund for space economy
The budget also includes a dedicated venture capital fund worth Rs 1,000 crore aimed at multiplying India’s space economy by five times over the next decade. This initiative aligns with the growing importance of space technology and its potential to contribute significantly to both national and global economies. The fund is expected to attract substantial private investments, foster entrepreneurial ventures, and enhance India’s competitive position in the space industry.
Conclusion
The 2024 budget’s emphasis on innovation and research marks a bold step towards ensuring India’s position as a global technology leader. With substantial financial support and strategic initiatives, the country is poised to make significant strides in technology, benefiting both the domestic economy and its position on the international stage. India’s commitment to fostering a robust ecosystem for tech start-ups and research-driven innovations will undoubtedly pave the way for a new era of growth and prosperity.