Revamping India's Startup Landscape: New Funding Guidelines in the Pipeline

The Indian government is preparing advanced guidelines to operationalize the second phase of the startup Fund of Funds scheme, aimed at strengthening the ecosystem with a focus on deep tech sectors. Initiated in 2016 with Rs 10,000 crore, the scheme propels entrepreneurship by enabling startups to take calculated risks.

Commerce and Industry Minister Piyush Goyal announced on Friday that guidelines for the second phase of the Fund of Funds scheme for startups are nearing completion. This scheme, vital to fortifying the startup ecosystem, was initiated in 2016 with a seed capital allocation of Rs 10,000 crore.

After the success of the first tranche, another Rs 10,000 crore was sanctioned in the recent Union Budget. The government aims to channel a substantial fraction of this fund into deep tech and high-tech sectors such as defence, space, and aerospace, to further foster youth entrepreneurship.

As the program prepares to operationalize, the draft guidelines await cabinet approval. This development coincides with the 10th anniversary of the Startup India initiative, which has recognized over 2 lakh entities, providing them with incentives under the Startup India action plan, as noted by the Department for Promotion of Industry and Internal Trade (DPIIT).

(With inputs from agencies.)