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Budget 2025: Govt Announces ₹10,000 Crore Fund To Boost Startups

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Alankar Mishra

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Updated: 16-04-2025 at 12:34 PM

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Budget 2025 Startup Funds

Indian Union Budget 2025 includes a Fund of Funds for Startups (FFS) which amounts to ₹10,000 crore. The initiative, announced by Minister Nirmala Sitharaman, marks a paradigm shift towards innovation and entrepreneurship within India, strengthening the startup ecosystem in the country. This fund is expected to assist in all phases of a startup’s lifecycle from early to seed to expansion. The government has already recognised over 150,000 startups which showcases India as a major player in the world of startups.

Key Highlights

FeatureDetails
Fund NameFund of Funds for Startups (FFS)
Announced ByFinance Minister Nirmala Sitharaman
Total Fund Corpus₹10,000 crore
Managing BodyDPIIT & SIDBI
Startup SupportEarly-stage, seed, and growth-stage startups
ObjectiveBoost domestic capital and reduce foreign dependence

Encouraging Startup Growth

The FFS scheme was launched in 2016 and has been instrumental in aiding the funding of Indian startups. The fresh ₹10,000 crore corpus will increase capital supply and encourage Indian venture capital funds.

The increased participation of local investors in these start-ups will enable India to wean itself away from foreign capital while establishing its footprint in innovation across the globe.

Startup India: A Decade of Growth

The Startup India Action Plan started back in 2016 and its existence has contributed vigorously to the expansion of the “Startup” ecosystem within India. In particular, it has resulted in:

  • An increase in investment from within the country into the startup space.

  • Creation of more innovation-led companies.

  • Enhanced government support through financial and policy handouts.

By removing barriers to capital and promoting investment within the country, the Indian government is looking to boost India's ranking as a worldwide innovation powerhouse.

Conclusion

The fund of funds with a budget of ₹10,000 crores in 2025 will provide essential funding to startups in seed and growth stages. This step focuses on increasing capital access, reducing constraints and enhancing internal investments which supports India’s aspiration to build a global startup ecosystem.

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