Finance Minister Nirmala Sitharaman announced a Rs 10,000 crore fund in the Union Budget 2025 to support the Indian startup ecosystem. The Fund of Funds for Startups (FFS) will assist emerging businesses financially. Last week, at least 30 startups raised $248.87 million in funding.
This shows the thriving nature of India’s startup landscape. The Department for Promotion of Industry and Internal Trade (DPIIT) will manage the distribution of these funds. The initiative aligns with the Small Industries Development Bank of India’s (SIDBI) goals of promoting small and medium-sized enterprises.
The Fund of Funds is a more considerable effort to encourage domestic investment in the startup ecosystem.
Fund to bolster Indian startups
The government’s commitment under the 14th and 15th Finance Commission cycles ensures ongoing support for startups.
The announcement comes a decade after the launch of the Startup India initiative on January 16, 2016. The initiative has successfully accelerated the growth of Indian startups and contributed to the country’s economic dynamism. The new financial push is expected further to enhance the capabilities and global reach of Indian startups.
Industry experts are optimistic about the impact of the initiative. It comes at a time when startups are becoming an increasingly important part of the Indian economy. The allocated funds aim to support startups from inception through to scale-up stages.
The Rs 10,000 crore fund of funds is a significant step by the government to foster innovation, create jobs, and drive economic growth through the thriving startup ecosystem.