wordpress blog stats
Connect with us

Hi, what are you looking for?

Budget 2014: Rs 10,000 Cr Startup fund, Rural entrepreneurship, Bankruptcy framework & more

There was a significant focus on startups in this year’s budget, with the finance minister Arun Jaitley proposing several measures to promote entrepreneurship in the country. 

While the specific details of these initiatives are yet to be known, here’s a list of measures announced by Jaitley in his budget speech earlier today:

₹10,000 crore Startup fund: Proposal to establish a ₹10,000 crore fund to attract private capital by providing equity, quasi equity, soft loans and other risk capital for startups.

Rural Entrepreneurship: A proposal to setup a “Startup Village Entrepreneurship programme” to encourage rural youth to take up local entrepreneurship programs. An initial sum of ₹100 crore has been provided for this programme.

– Special focus will be on supporting software product startups. There is no clarity on what this means to startups but it is part of a pan-India programmed dubbed as “Digital India” which will ensure broadband connectivity at village level, improved access to services through IT enabled platforms and increased indigenous production of IT hardware and software for exports and better domestic availability. A sum of ₹500 crore is being provided for this programmme.

Advertisement. Scroll to continue reading.

– A ₹200 crore fund has been proposed to establish a technology centre network which will promote innovation, entrepreneurship and and agro-industry.

Entrepreneur friendly legal bankruptcy framework will be developed for SMEs to enable easy exit. While there are no specifics on this yet, we feel this is a good move, since it will enable more entrepreneurs to experiment with their ideas and shut shop if it doesn’t work.

– A nationwide “District level Incubation and Accelerator Programme” would be taken up for incubation of new ideas and providing necessary support to accelerate entrepreneurship.

– A sum of ₹200 crore has been set aside to provide credit enhancement facility to young start up entrepreneurs from Scheduled Castes who aspire to be part of the neo-middle class. This will be operationalised through a scheme by IFCI.

– FDI in Insurance is being increased to 49%. This will benefit companies like policybazaar.com, which was affected by the 26% limit for online aggregators.

– No FDI in e-commerce yet. More on that here

Advertisement. Scroll to continue reading.

– The definition of MSME will be reviewed to provide for a higher capital ceiling.

Our Budget 2014-15 coverage

Budget 2014-15 Live: The Digital Industry updates: Rs 10,000 Crore Startup fund, FDI In Insurance, E-commerce platforms
Online and Mobile advertising back under service tax regime in India
No FDI in E-commerce yet 
Indian Govt looking to setup virtual classrooms & online courses

Written By

MediaNama’s mission is to help build a digital ecosystem which is open, fair, global and competitive.



Due to the scale of regulatory and technical challenges, transparency reporting under the IT Rules has gotten off to a rocky start.


Here are possible reasons why Indians are not generating significant IAP revenues despite our download share crossing 30%.


This article addresses the legal and practical ambiguities in understanding the complex crypto ecosystem in India.


It is widely argued that the PDP Bill report seeks to discard the intermediary status of social media platforms but that may not be...


Looking at the definition of health data, it is difficult to verify whether health IDs are covered by the Bill.

You May Also Like


Google has released a Google Travel Trends Report which states that branded budget hotel search queries grew 179% year over year (YOY) in India, in...


135 job openings in over 60 companies are listed at our free Digital and Mobile Job Board: If you’re looking for a job, or...


Rajesh Kumar* doesn’t have many enemies in life. But, Uber, for which he drives a cab everyday, is starting to look like one, he...


By Aroon Deep and Aditya Chunduru You’re reading it here first: Twitter has complied with government requests to censor 52 tweets that mostly criticised...

MediaNama is the premier source of information and analysis on Technology Policy in India. More about MediaNama, and contact information, here.

© 2008-2021 Mixed Bag Media Pvt. Ltd. Developed By PixelVJ

Subscribe to our daily newsletter
Your email address:*
Please enter all required fields Click to hide
Correct invalid entries Click to hide

© 2008-2021 Mixed Bag Media Pvt. Ltd. Developed By PixelVJ