NEW DELHI: Finance Minister Nirmala Sitharaman on Saturday announced a new round of the Fund of Funds for Startups (FFS) scheme with a Rs 10,000 crore corpus, reaffirming the government’s commitment to fostering innovation and entrepreneurship. The move comes as India continues to expand its startup ecosystem, with over 1.5 lakh startups recognized by the Department for Promotion of Industry and Internal Trade (DPIIT) so far.
A renewed push for startups
The FFS scheme, first launched in 2016, has played a key role in providing capital to startups at various stages—early, seed, and growth—while also reducing dependence on foreign capital. Administered by DPIIT and operated by the Small Industries Development Bank of India (SIDBI), the scheme was initially funded across the 14th and 15th Finance Commission cycles based on progress and fund availability.
Encouraging domestic investment
Sitharaman highlighted that the new fund will not only support emerging entrepreneurs but also catalyze domestic capital infusion. “This initiative has encouraged homegrown venture capital funds, making India a stronger player in the global startup ecosystem,” she said.
Startup India: A decade of growth
The renewed fund aligns with the Startup India action plan, which was first unveiled on January 16, 2016. Since its inception, the initiative has significantly contributed to India’s startup boom, with a sharp increase in domestic funding and innovation-driven enterprises.
By extending financial support and reducing capital constraints, the government aims to accelerate the growth of Indian startups, further strengthening the country’s position as a global innovation hub.