The Government of India has started a new revolution in the startup world by expanding the scope of its Rs 10,000 crore ‘Startup Fund of Funds’ (FoF 2.0). Now the focus will shift from ‘Quick Commerce’ and ‘Delivery Apps’ to deep tech areas like AI, Semiconductor, Defense Tech, EV, Climate Tech and Space. The main vision of the government is to make India not just a consumer market but a global player in high-tech manufacturing, so that we can sell modern technology to the world.
This fund is being managed by SIDBI (Small Industries Development Bank of India). According to reports, this Rs 10,000 crore investment by the government has a ‘multiplier effect’. It aims to attract additional capital from the private sector (Private VCs), taking the total investment to Rs 40,000 to Rs 50,000 crore. Now government support will be available only to those funds which invest a major part of their capital in deep-tech startups.
Also read: Know the meaning of these 10 words, you will start understanding business news.
foreign chip holiday
India is currently largely dependent on imports for semiconductors and high-end electronics. FoF 2.0 will become a means to eliminate this dependency. Startups engaged in Artificial Intelligence and chip manufacturing will be given funding as ‘Priority Sector’. Its objective is to transform India from a ‘services economy’ to a ‘product nation’, where we can produce our own chips and satellites.
Defense and clean energy
Considering the current global situation, the government now wants to be self-reliant in Defense Tech. Therefore, special incentives are being given to startups working on anti-drone systems, cyber security and advanced weapons. Also, to achieve the net-zero target of 2070, Climate Tech and EV (Electric Vehicle) startups, which are manufacturing battery cells in India, will get great help from this fund.
Also read: From software to factory, why is India’s business model changing?
Made in India Hardware
Under the new vision of DPIIT, startups will no longer be limited to making just software or apps. The government is now providing huge support and investment facilities for hardware manufacturing. This means that in the coming times, Indian startups will not only code for the world, but will also manufacture advanced engineering and complex hardware products in India.
Comments are closed.