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The Launchpad for Innovation, Startups, and India's Economic Ascent

Budget 2025-26: 

The Launchpad for Innovation, Startups, and India's Economic Ascent

The Hon’ble Finance Minister, while presenting the Budget 2025-26, highlighted the four key engines driving India's transformation towards Viksit Bharat—Agriculture, MSMEs, Investment, and Exports. Among these, the third engine, Investment, takes center stage, channeling resources into human capital, economic expansion, and technological breakthroughs, thus forming the backbone of India's progressive journey.

The Third Engine: 

Investment and Innovation

Atal Tinkering Labs: Igniting Young Minds

A cornerstone of India’s innovation landscape, Atal Tinkering Labs (ATLs)—a flagship initiative under the Atal Innovation Mission (AIM) of NITI Aayog—has been a catalyst for nurturing creativity and problem-solving among young minds since its inception in 2016. These labs provide students with hands-on experience in robotics, 3D printing, artificial intelligence, and emerging technologies, fostering a culture of innovation.

Reaffirming its commitment to empowering one million young innovators, the government has announced the establishment of 50,000 new ATLs in government schools over the next five years. With a fourfold increase in budgetary allocation, the Atal Innovation Mission now boasts a dedicated fund of ₹400 crore for the fiscal year 2025-26, cementing its role in shaping the next generation of technological pioneers.

Research, Development, and Innovation: Paving the Path for Scientific Excellence

With a bold ambition to position India as a global hub for cutting-edge research, the government has earmarked a substantial ₹20,000 crore for private sector-led Research, Development, and Innovation. This marks an extraordinary leap from the 2024-25 Budget Estimate of ₹2,819 crore and the Revised Estimate of ₹2,351 crore, underscoring an aggressive push toward scientific advancements.

The Vigyan Dhara scheme, spearheaded by the Department of Science and Technology, has seen its budget surge to ₹1,425 crore—an exponential rise from ₹330.75 crore in the previous year. Additionally, the Council of Scientific and Industrial Research (CSIR) has been allocated ₹6,600 crore, reinforcing India’s pursuit of self-reliance in cutting-edge technologies. These investments are expected to accelerate private sector involvement in R&D, propelling India toward becoming a technology-driven powerhouse.

Deep Tech Fund of Funds: Supercharging India’s Startup Ecosystem

Recognizing the transformative potential of deep technology, the government has introduced a ₹10,000 crore DeepTech Fund of Funds Scheme (FFS). This strategic initiative expands the Small Industries Development Bank of India (SIDBI) Fund of Funds for Startups, raising the scheme’s total corpus to ₹20,000 crore.

By infusing fresh capital into deep-tech startups, this initiative aims to position India as a global leader in next-generation technologies, fostering innovation in artificial intelligence, quantum computing, biotech, and space-tech. Early-stage startups will gain seamless access to critical funding, paving the way for groundbreaking discoveries and technological breakthroughs.

PM Research Fellowship: Strengthening Higher Education and Scientific Inquiry

India’s push for advanced research and academic excellence receives a significant boost with the expansion of the Prime Minister’s Research Fellowship (PMRF) Scheme under Budget 2025-26. An additional 10,000 fellowships will be granted to scholars pursuing research in premier institutions such as IITs and IISc.

Since its launch in 2018-19, the PMRF scheme has attracted the brightest minds, offering direct Ph.D. admissions with lucrative fellowships ranging from ₹70,000 to ₹80,000 per month. With enhanced financial support and increased opportunities, this initiative is set to foster a new era of scientific excellence, positioning India at the forefront of global research and innovation.

National Gene Bank: Securing India’s Agricultural Heritage

In a historic move to safeguard India’s agricultural legacy, the government has announced the establishment of a National Gene Bank, dedicated to preserving over a million germplasm lines. This initiative will play a crucial role in ensuring food and nutritional security while supporting research and conservation efforts in the agricultural sector.

Nearly three decades after the first Gene Bank was established in 1996 by the Indian Council of Agricultural Research-National Bureau of Plant Genetic Resources (ICAR-NBPGR) in New Delhi, this second institution will expand genetic resource conservation. With 12 regional centers across India, these repositories will be instrumental in advancing crop resilience and securing India’s agricultural future.

National Geospatial Mission: Revolutionizing Urban Planning and Infrastructure

The National Geospatial Mission, introduced in the 2025-26 Budget, is poised to transform urban planning and land management in India. By leveraging the PM Gati Shakti framework, this mission aims to strengthen geospatial infrastructure, enabling efficient planning and execution of large-scale infrastructure projects.

Geospatial technology—integrating real-time location-based data with advanced analytics—has the potential to revolutionize land records management and urban governance. However, with an initial budgetary allocation of ₹100 crore, industry experts have raised concerns about the sufficiency of funds to fully realize the mission’s ambitious objectives.

Conclusion

The Union Budget 2025-26 stands as a beacon of India's aspirations for holistic and sustainable development. With a strategic emphasis on investment, technological innovation, and inclusive growth, the government has set forth a blueprint for a Viksit Bharat—one that is self-reliant, knowledge-driven, and technologically advanced.

From fostering young innovators through Atal Tinkering Labs to supercharging research via deep-tech investments, and from preserving agricultural genetic diversity to digitizing India's intellectual heritage, this budget encapsulates a forward-thinking vision for a prosperous future. As India marches toward its centenary of independence in 2047, these groundbreaking initiatives will shape a nation that thrives on innovation, progress, and shared prosperity for generations to come.