The Union Budget 2025 provides a major boost to India’s startup ecosystem, focusing on innovation, entrepreneurship, and infrastructure. Key highlights include a ₹10,000 crore Fund of Funds for startups, dedicated deep-tech funding, increased tax exemptions to boost consumer spending, and an ₹11.21 trillion capital expenditure plan for infrastructure. Fiscal discipline at a 4.4% deficit reassures investors. However, efficient fund deployment, deep-tech talent retention, AI regulations, and higher R&D investment are critical for success. If executed well, these reforms could position India as the world’s second-largest startup ecosystem, challenging China’s dominance in the coming decade.