India is making a strong push into deep technology. Union Minister Piyush Goyal recently announced the second edition of the Fund of Funds (FoF) with a ₹10,000 crore allocation at Startup Mahakumbh 2025 in New Delhi. This initiative underscores the government’s commitment to fostering innovation and supporting startups in AI, data analytics, and other deeptech sectors.
A Strategic Boost for DeepTech Innovation
Goyal emphasized that the government’s role is to facilitate, not regulate, the startup ecosystem. He directed SIDBI to prioritize smaller startups when disbursing FoF funds. Additionally, he proposed establishing one centre in every state to guide entrepreneurs in developing new ideas.
This strategy aims to increase accessibility and support for early-stage ventures. The fund specifically targets startups working on cutting-edge technologies. By providing financial backing, it bridges the funding gap that often limits growth in deeptech sectors, ultimately strengthening India’s global competitiveness.
Grant-Based Funding to Empower Founders
Moreover, Goyal encouraged a shift towards grant-based funding models. This approach allows founders to retain more equity in their companies. He stated:
“Allow founders to enjoy their equity. If they succeed, let them claw it back.”
This method reduces financial pressure on startups and encourages more entrepreneurs to enter deeptech, where R&D costs are typically high.
Strengthening Regional Innovation Hubs
The government also aims to decentralize support across India. By establishing state-level centres, regional talent gains access to mentorship and resources. As a result, startups from diverse backgrounds will have better opportunities to thrive.
Enhancing Research and Development Infrastructure
Complementing the FoF, the government plans the Anusandhan National Research Foundation (NRF) with a ₹1 lakh crore corpus. This initiative promotes collaboration between the public, private, and academic sectors to drive research and innovation.
In parallel, ₹2,000 crore has been allocated specifically for AI startups, recognizing the sector’s transformative potential. Efficient deployment of these funds will be crucial to provide timely support for startups.
The Road Ahead
Despite these initiatives, experts stress the importance of streamlined application processes and transparent fund allocation. Effective coordination between funding agencies and startups is essential to avoid delays and maximize the impact of government support.
As India positions itself as a global deeptech leader, the success of these programs will depend on sustained commitment and active participation from all stakeholders. The government’s proactive measures signal a promising future for India’s deeptech ecosystem.
Conclusion
The ₹10,000 crore Fund of Funds and the Anusandhan NRF mark significant steps toward India’s deeptech ambitions. By fostering innovation and providing crucial resources, the government is laying the groundwork for a startup ecosystem capable of competing globally.
