03-February-2025: Gopal Srinivasan, Chairman & Managing Director of TVS Capital Funds, lauded the Union Budget 2025 for its balanced and forward-looking approach, emphasising its role in strengthening India’s investment ecosystem through regulatory clarity, deeper capital markets, and expanded capital access for entrepreneurs and investors.
“The Hon’ble Finance Minister has once again delivered a balanced and forward-looking Budget, skilfully addressing diverse economic priorities. Managing the competing demands of various stakeholders—whether foregoing ₹1 lakh crore in personal tax revenue to boost consumption, maintaining fiscal discipline at 4.4%, or ensuring stable borrowing levels to enable lower interest rates—demonstrates a strategic approach to inclusive growth.
For startups and investors, this Budget builds on the July 2024 tax reforms, including LTCG alignment and Angel Tax removal, by providing greater regulatory clarity, deeper capital pools, and stronger business enablers. The capital gains treatment of Category I and II AIF investments is now legally codified, removing ambiguity and ensuring stability. A revamped Central KYC Registry will reduce onboarding time across financial institutions, while the incorporation deadline for tax benefits has been extended by five years, covering startups founded before April 1, 2030. Raising the FDI limit from 74% to 100% will unlock capital and accelerate the government’s ‘Insurance for All’ mission.
Expanding capital access and innovation remains a key focus. The ₹10,000 crore Fund of Funds for Startups strengthens the ₹90,000 crore capital pool created since 2016, ensuring a fresh infusion that will accelerate domestic capital flow for growth-stage startups. A new entrepreneurial scheme for SCs, STs, and first-time founders, inspired by Stand-Up India, will further expand grassroots entrepreneurship. The Deep Tech Fund of Funds will support next-gen startups, complementing the ₹20,000 crore R&D Innovation Initiative. The introduction of SWAMIH Fund 2 for affordable housing, structured as a blended finance facility, will enable the completion of another one lakh homes, building on the success of the first SWAMIH fund. Additionally, the provision for partial credit enhancement for infrastructure bonds will strengthen the corporate bond market, attracting retail investors and deepening capital markets.
As a representative of the Indian Venture Capital Association (IVCA), I sincerely thank the Hon’ble Finance Minister for addressing critical industry requests. This Budget is a major boost for India’s investment ecosystem, ensuring regulatory clarity, deeper capital markets, and greater access to funds for high-impact entrepreneurs,” added Srinivasan.
TVS Capital Funds remains committed to supporting India’s next generation of entrepreneurs and playing a role in the country’s journey towards becoming a $10 trillion economy.