New Fund of Funds Scheme to Boost Manufacturing and Tech Startups

The Indian government has introduced a Rs 10,000 crore Fund of Funds Scheme designed to support startups, emphasize manufacturing and high-tech sectors, and offer long-term funding solutions. Consultations with AIFs and key stakeholders are underway as part of expanding the startup investment ecosystem.

The Indian government has announced a significant Rs 10,000 crore Fund of Funds Scheme aimed at bolstering the manufacturing and high-tech sectors. This initiative, introduced in the recent Budget, seeks to address the funding needs of startups, particularly those in high-end technology and public service delivery.

According to DPIIT Secretary Amardeep Singh Bhatia, this new scheme is distinct from previous efforts and aims to broaden the country's alternate investment fund ecosystem. The initial series of the fund catalyzed over Rs 21,700 crore in investments across more than 1,180 startups.

The government plans to extend the scheme's duration to 14-15 years to meet the requirements of sectors with longer gestation periods. Joint Secretary Sanjiv highlighted the ambition to mobilize twenty times the fund size, distinguishing this series from its predecessor.