Boosting Innovation: Government Unveils Second Tranche of Startup India Fund

On Friday, the Indian government approved the second tranche of the Startup India Fund of Funds Scheme, introducing a significant Rs 10,000 crore corpus. Prime Minister Narendra Modi, in a social media announcement, emphasized its role in encouraging early stages of startups and deep-tech research.

Modi's first day at his new office, Seva Teerth, signaled a renewed focus on empowering the disadvantaged, farmers, and youth. Major decisions included endorsing the expanded Startup India Fund of Funds, promising substantial support for entrepreneurial ventures.

The Fund of Funds, first created in 2016, has already catalyzed venture capital investments effectively. The new tranche, allocated in the Union Budget for 2025-26, is anticipated to further incentivize over 2 lakh recognized startups under the Startup India initiative.