• Next Startup Fund of Funds to be dedicated mainly to deep-tech startups
• Rs 1 trillion Anusandhan Fund to support innovation with low-cost, long-term loans
• Aim to make India a global innovation hub and reduce foreign tech dependence

The Indian government will channel its next Startup Fund of Funds almost entirely toward deep-tech ventures, Commerce and Industry Minister Piyush Goyal announced, highlighting India’s shift from a back-office economy to a global innovation powerhouse.

Speaking at an event in New Delhi, Goyal said the initiative will focus on early-stage deep-tech startups, providing them with risk capital so they can grow without selling large portions of equity early on. “We are hoping to dedicate almost the entire second edition of the Startup Fund of Funds to deep-tech investments”, he said.

The minister also outlined plans for the government’s Rs 1 trillion Anusandhan Fund, which will offer long-tenure, low-cost loans to drive research and innovation in cutting-edge fields. “This will enable nearly $100 billion worth of research equivalent to what’s being done in advanced economies”, he added.

Deep tech covers areas such as AI, cybersecurity, clean energy, advanced computing, mobility, agritech, and infrastructure. India’s deep-tech funding has grown from $36 million in 2016 to $677 million in 2023, placing the country among the top 10 globally.

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Goyal stressed that the goal is to build technological self-reliance and reduce dependence on foreign technologies. He credited the Digital India initiative for expanding internet access to nearly 1 billion users and fostering innovation across sectors.

Encouraging innovators and investors, Goyal said, “India is ready to sail and take on global challenges”.