In a major push to strengthen India’s startup ecosystem, the Ministry of Commerce and Industry has earmarked a significant portion of its new ₹10,000 crore Fund of Funds to support ventures in cutting-edge sectors like artificial intelligence (AI), machine building, and emerging technologies.
The initiative, introduced in the recent Union Budget, seeks to accelerate innovation, foster entrepreneurship, and fuel the growth of next-generation startups in high-tech domains.
“We are planning to allocate a large chunk of this fund specifically for new-age technologies like AI and machine building,” a senior official confirmed.
SIDBI to Oversee Fund Distribution
The fund will be managed by the Small Industries Development Bank of India (SIDBI). Following a similar model launched in 2016, SIDBI will route the capital through SEBI-registered Alternative Investment Funds (AIFs). These AIFs will, in turn, invest in promising startups across India.
Expanding the Startup India Vision
This move aligns with the broader Startup India mission, launched on January 16, 2016, which aims to create a robust and inclusive environment for entrepreneurship. So far, over 1.5 lakh startups spanning 55+ sectors have been officially recognized under the initiative, gaining access to tax benefits, funding support, and regulatory incentives.
The fresh infusion of capital is expected to energize India’s position as a global innovation hub, especially in high-tech manufacturing and artificial intelligence.
