Business

Govt To Channel ₹10,000 Crore Startup Fund Towards AI, Tech, And Machine-Building Sectors

The Ministry of Commerce and Industry has decided to allocate a significant portion of the newly announced ₹10,000 crore Fund of Funds Scheme (FFS) to support budding entrepreneurs in emerging sectors such as artificial intelligence (AI), new-age technology, and machine building, a senior government official confirmed on Monday.

“We are going to dedicate a lot of this ₹10,000 crore Fund of Funds largely for the new-age tech, AI, and machine building,” the official said, underlining the government’s push to back high-growth and innovation-driven industries.

This new corpus, announced in the Union Budget, is the second edition of the FFS initiative.

The government launched the first ₹10,000 crore scheme in 2016 to catalyze venture capital investments in Indian startups.

SIDBI To Manage Second Fund As Well

Just like the original scheme, the Small Industries Development Bank of India (SIDBI) is expected to manage the new fund.

Under the existing framework, SIDBI provides capital to Securities and Exchange Board of India (SEBI)-registered Alternative Investment Funds (AIFs), which then invest in eligible startups.

By utilizing this indirect investment route, the government aims to maximize outreach and impact across India’s rapidly growing startup ecosystem.

Strengthening The Startup Ecosystem

The Fund of Funds initiative forms a key pillar of the larger Startup India program, which the government launched on January 16, 2016, to foster innovation, generate employment, and enhance the ease of doing business for emerging ventures.

Also Read: India’s Luxury Housing Sales Surge 28% In Q1 2025; Led By Delhi-NCR And Mumbai

To date, the Department for Promotion of Industry and Internal Trade (DPIIT) has officially recognized over 1.5 lakh startups spanning more than 55 sectors.

These startups enjoy a range of tax and non-tax benefits, including exemptions, rebates, and easier access to government funding and procurement opportunities.

Looking Ahead: Innovation-Led Growth

With the fresh infusion of ₹10,000 crore, the government is signaling a clear intent to nurture innovation-led growth and maintain India’s momentum as one of the world’s leading startup hubs.

Officials believe that prioritizing sectors like AI and machine building will not only create high-value jobs but also bolster India’s standing in global technology and manufacturing landscapes.

Richa Kaushik

Recent Posts

Bullet Discovery At Hyderabad Metro Sparks Police Investigation

A 9 mm bullet was found in a commuter’s bag at Hyderabad’s Moosapet Metro Station,…

1 hour ago

Neurosurgeon Reveals Everyday Habits That Gradually Harm Brain Health

Neurosurgeon Dr Richard Veyna warns that poor sleep, stress, inactivity, and sugary diets can harm…

3 hours ago

Amazon Diwali Sale: Last-Minute Smartphone Deals You Can Grab Before October 20

Amazon Diwali sale ends October 20; grab last-minute deals on Samsung, Apple, OnePlus, Realme, and…

3 hours ago

Government Extends GSTR-3B Filing Deadline By Five Days Owing To Festive Season

The government has extended the GSTR-3B filing deadline to 25 October 2025, giving taxpayers extra…

4 hours ago

Disrespectful And Insensitive: BJP Slams Akhilesh Yadav For Questioning Diwali Expenditure

The BJP on Sunday slammed Akhilesh Yadav for questioning Diwali diya spending, calling his remarks…

4 hours ago

Virat Kohli Returns To International Cricket; Claims Peak Fitness After Hiatus

Virat Kohli returns to international cricket for India’s ODI series in Australia, asserting peak fitness…

6 hours ago