Union Commerce and Industry Minister Piyush Goyal on Saturday announced a major move to strengthen India’s deep-tech startup ecosystem by allocating a significant portion of the newly approved ₹10,000 crore second Fund of Funds for seed funding. The initiative is aimed at nurturing early-stage startups working in AI, robotics, biotech, quantum computing, and other emerging sectors.
Managed by the Small Industries Development Bank of India (SIDBI), the fund will see a disbursement of ₹2,000 crore in the current financial year, supporting startups with long gestation periods and high capital requirements—challenges that typically deter traditional investors.
While addressing entrepreneurs at the Startup Mahakumbh 2025, Goyal emphasized that this initiative is part of the government’s larger vision to promote indigenous innovation, satisfy national strategic needs, and help India become a global leader in technology and innovation.
“We want to help develop emerging technologies such as AI, robotics, quantum computing, machine learning, precision manufacturing, and biotech,” Goyal said.
To support this vision beyond funding, Goyal announced the launch of a dedicated Startup India Desk within the Ministry of Commerce. The desk will function as a central helpline—accessible via a four-digit toll-free number in multiple regional languages—to address the concerns of budding entrepreneurs and invite policy suggestions directly from the startup community.
Goyal also instructed SIDBI to establish at least one startup support centre in every Indian state, offering shared infrastructure and basic facilities to early-stage ventures to help them scale sustainably.
The new initiative builds upon the success of the first Fund of Funds introduced in 2016, which backed over 125 Alternative Investment Funds (AIFs) and enabled funding to more than 720 startups across sectors. With this second phase, the government aims to move beyond ecosystem development and focus on deep-tech innovations that can propel India into the ranks of leading global tech economies.
“We’re mobilising patient capital so our startups can innovate for India and the world,” Goyal said, while also urging domestic investors to place greater trust in Indian startups.