Continue on TOI App
Open App
OPEN APP

Budget 2025: Govt announces Rs 10,000 crore fund of funds to boost startups

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.

Tired of too many ads?go ad free now

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.
Get real-time updates on Budget 2025 and Income Tax Slabs on Times of India. Watch the full Budget 2025 speech video.
About the Author

TOI Business Desk

The TOI Business Desk is a vigilant and dedicated team of journal... Read More

Start a Conversation

Post comment
Continue Reading
Follow Us On Social Media
end of article
More Trending Stories
Visual Stories
More Visual Stories
UP NEXT
Do Not Sell Or Share My Personal Information