Union Commerce Minister Piyush Goyal has announced a significant initiative to support India's DeepTech startup ecosystem with a Rs 10,000 crore Fund of Funds. This move aims to foster the development of cutting-edge technologies such as artificial intelligence (AI), robotics, quantum computing, machine learning, precision manufacturing, biotech, and semiconductor design.
The fund will provide long-term financial support to research-oriented startups, addressing the challenge of securing traditional capital due to the high-risk nature of DeepTech innovations. A substantial allocation will be dedicated to biotechnology, focusing on areas like genomics, synthetic biology, bio-manufacturing, diagnostics, and biopharma. This is crucial for improving public health outcomes and enhancing sustainability in agriculture. A portion of the fund will be reserved for seed funding to help small startups scale their prototypes and conduct trials, bridging the gap in early-stage financing.
The Small Industries Development Bank of India (SIDBI) will manage the disbursement of funds, with Rs 2,000 crore allocated for the first tranche in 2025. Goyal has urged SIDBI to establish at least one support center in every state to provide infrastructure and shared facilities for early-stage entrepreneurs.
A dedicated helpline has been set up within the Startup India initiative to address regulatory issues and provide feedback mechanisms for startups. The government aims to promote indigenous innovation, encouraging startups to develop their own AI models and machines to enhance India's status as a high-quality and high-skill nation.
The Rs 10,000 crore Fund of Funds represents a significant commitment to nurturing India's DeepTech sector. By providing critical financial support and infrastructure, the government aims to position India as a global leader in innovation, fostering growth in key sectors like AI, biotech, and robotics.
