Rs 100-crore corpus for long-term funding of R&D projects gets thumbs up | Medium-Term Budget

Industry insiders welcomed Finance Minister Nirmala Sitharaman’s announcement of a 50-year interest-free loan of Rs 100 crore to fund research and innovation in rising sectors in the long term.

Also Read: Budget 2024 Live Updates | Income Tax Highlights

A Corpus fund, often called an endowment or capital fund, is a collection of funds reserved for a specific organization or purpose.

The initiative aims to promote private sector participation in research and innovation in various priority areas.

A game-changing move

The 50-year interest-free loan is seen as a far-sighted step that will not only provide financial support but also create an environment conducive to long-term research and development initiatives.

Asish Saraf, Vice President and Country Director, Thales India, appreciated the budget’s focus on research and innovation. “This allocation is a game changer. For our tech-savvy youth, this golden age will undoubtedly spur breakthroughs and drive progress.” Anirudh A Damani, Director, Artha India Ventures, said this will inspire entrepreneurship in tier-II and III towns. “The government’s initiative will not only facilitate access to capital but will also encourage institutional investors to look deeper into disruptive startups.”

Also Read | Prime Minister Narendra Modi-led NDA vs Sonia Gandhi-led UPA in 10 years in the Union Budget

Deepak NG, Managing Director, Dassault Systèmes India, highlighted its far-reaching impact. “This will go a long way in creating a thriving ecosystem for tech startups in the country.” CII India@75 Board Chairman Rajan Navani said: “From Startup India, Scale-up India to Research Prioritize India, investing in research should become as cool as investing in startups.”

Himanshu Jain, vice president, Satellite Developers Private Limited, said: “This will create huge demand for commercial real estate and give a huge boost to start-ups.”