Union budget announces a venture capital fund of US$ 119.5 million (Rs. 1,000 crore) to expand the space economy by 5 times in the next 10 years

In the Union Budget for FY25, Union Minister of Finance and Corporate Affairs Ms. Nirmala Sitharaman, announced several initiatives to advance digitalisation and technology adoption across the economy. She highlighted the successful application of technology over the past decade to boost productivity and reduce inequality. Public and private investments in digital infrastructure have notably improved access to resources such as education, health, and services for all citizens.

Key measures include enhancing data governance by utilizing sectoral databases and technology tools. The budget proposes reducing the Customs duty on mobile phones, mobile PCBA, and mobile chargers to 15% to benefit consumers, following significant domestic production and export growth. Additionally, to foster value addition in the domestic electronics sector, the government will remove Customs duties on oxygen-free copper for resistor manufacturing and exempt certain parts for connectors. To encourage domestic telecom equipment manufacturing, the Customs duty on PCBA will increase from 10% to 15%. The budget also proposes developing Digital Public Infrastructure (DPI) applications across various sectors, including credit, e-commerce, and urban governance. Furthermore, a venture capital fund of US$ 119.5 million (Rs. 1,000 crore) will be established to expand the space economy by 5 times over the next decade.

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