Indian Union Budget 2025 includes a Fund of Funds for Startups (FFS) which amounts to ₹10,000 crore. The initiative, announced by Minister Nirmala Sitharaman, marks a paradigm shift towards innovation and entrepreneurship within India, strengthening the startup ecosystem in the country. This fund is expected to assist in all phases of a startup’s lifecycle from early to seed to expansion. The government has already recognised over 150,000 startups which showcases India as a major player in the world of startups.
Key Highlights
| Feature | Details |
|---|
| Fund Name | Fund of Funds for Startups (FFS) |
| Announced By | Finance Minister Nirmala Sitharaman |
| Total Fund Corpus | ₹10,000 crore |
| Managing Body | DPIIT & SIDBI |
| Startup Support | Early-stage, seed, and growth-stage startups |
| Objective | Boost domestic capital and reduce foreign dependence |
Encouraging Startup Growth
The FFS scheme was launched in 2016 and has been instrumental in aiding the funding of Indian startups. The fresh ₹10,000 crore corpus will increase capital supply and encourage Indian venture capital funds.
The increased participation of local investors in these start-ups will enable India to wean itself away from foreign capital while establishing its footprint in innovation across the globe.
Startup India: A Decade of Growth
The Startup India Action Plan started back in 2016 and its existence has contributed vigorously to the expansion of the “Startup” ecosystem within India. In particular, it has resulted in:
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An increase in investment from within the country into the startup space.
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Creation of more innovation-led companies.
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Enhanced government support through financial and policy handouts.
By removing barriers to capital and promoting investment within the country, the Indian government is looking to boost India's ranking as a worldwide innovation powerhouse.
Conclusion
The fund of funds with a budget of ₹10,000 crores in 2025 will provide essential funding to startups in seed and growth stages. This step focuses on increasing capital access, reducing constraints and enhancing internal investments which supports India’s aspiration to build a global startup ecosystem.
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