In a move to further strengthen India’s startup ecosystem, Finance Minister Nirmala Sitharaman announced a new ₹10,000 crore corpus under the Startup India initiative while presenting the Budget 2025-26. This initiative aims to provide critical funding support for emerging businesses and expand on the ₹91,000 crore already committed under the Startup India Fund of Funds (FoF).
The new fund is expected to enhance financing opportunities for startups across various sectors, ensuring they have the resources to innovate and scale. Managed by the Small Industries Development Bank of India (SIDBI), the Startup India FoF has already deployed ₹11,147.70 crore, supporting numerous venture capital firms, including Blume Ventures, Kae Capital, Stellaris Venture Partners, and Sorin Investments. By expanding the fund, the government aims to attract more private investment, boost entrepreneurship, and drive economic growth.
Since its launch in 2016, the Startup India initiative has played a crucial role in fostering innovation, simplifying regulatory processes, and improving access to capital. The fresh infusion of ₹10,000 crore will further strengthen this foundation, providing more startups with financial backing to scale their operations. This move is expected to benefit startups in sectors such as artificial intelligence, green energy, fintech, deep tech, and healthcare, aligning with India’s broader vision of becoming a global leader in innovation.
By supporting venture capital funding through SIDBI, the initiative ensures that early-stage and high-growth startups receive the necessary financial assistance. The government’s decision to expand the fund comes at a time when startups continue to be a major driver of economic progress, job creation, and technological advancement in India. The infusion of funds will not only provide direct capital support but also help build a stronger investor ecosystem, encouraging more institutional and private investments in startups.
Additionally, this initiative aligns with the government’s broader economic strategy to promote self-reliance, enhance digital transformation, and create sustainable business models. As startups play a pivotal role in India’s long-term economic strategy, ensuring access to adequate funding will be crucial in maintaining growth momentum and global competitiveness.
While the announcement is a positive step, its impact will largely depend on effective implementation, fund allocation, and seamless execution. Ensuring that startups can easily access these funds without bureaucratic delays will be key to maximizing the initiative’s success. Transparency in fund disbursement and collaboration with industry stakeholders will further strengthen the ecosystem.
With this announcement, the government reinforces its commitment to making India a leading startup hub. By injecting fresh capital into the ecosystem, it is empowering entrepreneurs to build innovative solutions, create employment, and drive the next phase of economic transformation. The expansion of the Startup India initiative signals a strong push toward fostering entrepreneurship, positioning India at the forefront of global innovation and business growth.
