The Ministry of Commerce and Industry will use a large part of the second ₹10,000 crore Fund of Funds Scheme (FFS) to support startups working in new-age technology sectors like artificial intelligence (AI), machine building, and other advanced fields. This was shared by an official recently.
In the recent budget, the government announced this new FFS with a total fund of ₹10,000 crore. A similar scheme was also launched in 2016 to support startup growth.
“We are going to dedicate a lot of this ₹10,000 crore fund of funds largely for the new age tech, AI, and machine building,” the official said.
The 2016 scheme was designed to boost venture capital investment in startups. It was managed by the Small Industries Development Bank of India (SIDBI), which provided capital to SEBI-registered Alternative Investment Funds (AIFs). These AIFs then invested in startups across various sectors. The official added that SIDBI is likely to manage the new scheme as well.
This initiative is part of the government’s broader plan to build a strong startup ecosystem in India. The Startup India initiative, launched on January 16, 2016, was created to support innovation and help new businesses grow.
To be eligible, companies must be officially recognised as ‘startups’ by the department under the Startup India initiative. So far, over 150,000 businesses across more than 55 industries have received this recognition. These startups can get both tax and non-tax benefits under the Startup India action plan.
You might also be interested in: AI shows Americans working in US factories amid Trump’s tariff fight with China
