Govt to Prioritise New-Age Tech and AI Startups Under INR 10,000 Cr Fund of Funds
SIDBI will continue its role of deploying capital to SEBI-registered Alternative Investment Funds (AIFs), which subsequently invest in eligible startups.
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The commerce and industry ministry is set to channel a significant portion of its second INR 10,000 crore Fund of Funds Scheme (FFS) towards early-stage startups in emerging sectors like new-age technology, artificial intelligence (AI), and machine building, an official revealed.
Announced in the Union Budget, this revamped FFS marks the government’s renewed commitment to nurturing innovation-driven enterprises. Like its predecessor launched in 2016, the new scheme will be managed by the Small Industries Development Bank of India (SIDBI).
SIDBI will continue its role of deploying capital to SEBI-registered Alternative Investment Funds (AIFs), which subsequently invest in eligible startups.
“We are going to dedicate a lot of this INR 10,000 crore fund of funds largely for the new-age tech, AI, and machine building,” the official said, underlining the government’s vision to strengthen India’s position in futuristic technologies.
The move aligns with the broader Startup India initiative, launched in January 2016, which aims to build a robust startup ecosystem in the country. Under this initiative, over 1.5 lakh startups have been officially recognised across more than 55 sectors, making them eligible for a host of tax and non-tax incentives.
By targeting capital towards high-impact sectors, the new fund seeks to unlock innovation, attract private investments, and foster job creation. This step is expected to be a game-changer for deep-tech startups, especially those solving complex industrial and societal challenges.
The commerce and industry ministry is set to channel a significant portion of its second INR 10,000 crore Fund of Funds Scheme (FFS) towards early-stage startups in emerging sectors like new-age technology, artificial intelligence (AI), and machine building, an official revealed.
Announced in the Union Budget, this revamped FFS marks the government’s renewed commitment to nurturing innovation-driven enterprises. Like its predecessor launched in 2016, the new scheme will be managed by the Small Industries Development Bank of India (SIDBI).
SIDBI will continue its role of deploying capital to SEBI-registered Alternative Investment Funds (AIFs), which subsequently invest in eligible startups.
“We are going to dedicate a lot of this INR 10,000 crore fund of funds largely for the new-age tech, AI, and machine building,” the official said, underlining the government’s vision to strengthen India’s position in futuristic technologies.
The move aligns with the broader Startup India initiative, launched in January 2016, which aims to build a robust startup ecosystem in the country. Under this initiative, over 1.5 lakh startups have been officially recognised across more than 55 sectors, making them eligible for a host of tax and non-tax incentives.
By targeting capital towards high-impact sectors, the new fund seeks to unlock innovation, attract private investments, and foster job creation. This step is expected to be a game-changer for deep-tech startups, especially those solving complex industrial and societal challenges.
