Government Unveils New ₹10,000 Crore Fund to Boost Startups in Tech and AI

New Initiative to Support Emerging Entrepreneurs

New Delhi: The Ministry of Commerce and Industry is set to allocate a significant portion of the newly announced ₹10,000 crore Fund of Funds Scheme (FFS) to support emerging entrepreneurs, particularly in sectors like advanced technology, artificial intelligence, and machinery development, according to an official statement.

This initiative was introduced in the recent Budget, marking a continuation of a similar scheme launched in 2016.

The official noted, "A substantial amount of this ₹10,000 crore fund will be directed towards new-age technology, AI, and machine building."

The previous scheme aimed to stimulate venture capital investments and was implemented by the Small Industries Development Bank of India (SIDBI), which provides funding to AIFs registered with the Securities and Exchange Board of India (SEBI) that, in turn, invest in startups.

SIDBI is anticipated to oversee the management of this second scheme as well, the official added.

To foster a robust ecosystem for innovation and startup growth, the government initiated the Startup India program on January 16, 2016.

According to the eligibility criteria set by the government, entities recognized as 'startups' under the Startup India initiative have surpassed 150,000 across more than 55 sectors.

These startups can benefit from various tax and non-tax incentives outlined in the Startup India action plan.