Union Budget 2025: Startups Welcome ₹10,000 Crore Fund Boost
Finance Minister Nirmala Sitharaman, in her record eighth Budget presentation on February 1, 2025, introduced an additional ₹10,000 crore allocation to the Fund of Funds for Startups. The move is aimed at addressing funding challenges, fostering entrepreneurial growth, and reinforcing India’s position as a global startup hub.
Here’s how industry leaders from the startup ecosystem responded:
Ashish Agarwal – Co-Founder, Enzyme Office Spaces
“The additional ₹10,000 crore infusion into the Fund of Funds signals the government’s strong commitment to India’s startup ecosystem. With funding commitments already surpassing ₹9 lakh crore, this initiative ensures a steady flow of capital, enabling new-age startups to scale and innovate.”
Saurabh Tyagi – Co-Founder & CEO, PropChk
“In a landscape where startups are increasingly looking for domestic funding options, this expansion of the Fund of Funds is a game-changer. It bridges a critical gap, particularly benefiting deep-tech and emerging-sector startups that require sustained financial backing to thrive.”
Kishor Fogla – Founder, Yellow Slice
“With over ₹9 lakh crore in commitments, the enhanced Fund of Funds will attract more private investment into cutting-edge technologies. This initiative will not only expand India’s startup ecosystem but also boost investor confidence and position India as a key global player in innovation.”
Sahil Arya – Co-Founder & Director, Fat Tiger
“The government’s focus on widening access to startup funding through a ₹10,000 crore expansion is a step in the right direction. It ensures that emerging businesses have the necessary financial support to compete on a global scale and drive economic progress.”
Aditya Jangid, Managing Director, AdCounty Media
“A commitment to improving India’s technological capacity is reflected in the government’s plan to develop a Deeptech Fund of Funds. With the creation of this innovative funding provision, India will be able to support some of the world’s best breakthroughs across a wide range of emerging technologies. The PM Research Fellowship Scheme under which 10,000 fellowships will be provided, especially to IITs and the IISc, is a smart move to enhance the nature of research in India. Committing to nurturing tech talent by offering scholarships over the next five years will foster a new generation of researchers and innovators. The combination of subsidizing the fund for financial support and the fellowships for human capital advancement for the nation puts India in a strong position in the world technology market.”
Kishor Fogla, Founder of Yellow Slice
“The creation of a separate Deeptech Fund of Funds is a game-changer for India’s technology sector development. This will spur investment into critical areas like AI, quantum computing, and advanced materials. The decision to grant 10,000 fellowships at IITs, IISCs, and other premier institutions shows an appreciation of the research ecosystem. The program funding scholarship for five years will ensure continuous development of technological expertise. This mix of institutional research support and individual funding is the right recipe for fostering technological development and improving India’s position in the global technology market.”
Hariom Seth, Founder, Tagglabs
“Without a doubt, the budget’s focus on deeptech funding through the specialized Fund of Funds illustrates a deeper requirement of this sphere. This initiative will specifically target the financing of the high-risk – high return investments into new technologies. The promised 10,000 fellowships to be provided at the IITs and the IISc under the PM Research Fellowship Scheme is an encouraging sign in terms of advanced technology research. The five year scholarship scheme will ensure a consistent & reliable supply of tech innovators. These actions pinpoint the blended investment model of strengthening the technology base of India by providing support at the institutional level as well as nurturing talent at the individual level.”
The Union Budget 2025 reinforces India’s commitment to fostering innovation, entrepreneurship, and long-term growth, ensuring that startups continue to play a pivotal role in the country’s economic trajectory.
