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Budget 2025-26: India’s startup ecosystem gets Rs 10,000 crore Fund of Funds

2025-02-01

The Union Budget 2025-26 Announced a establishment of a new Fund of Funds with an additional ?10,000 crore for startups that will provide significant benefits to India's entrepreneurial ecosystem.

Calling it a significant step in strengthening India’s startup ecosystem, Vimal Nadar, Head of Research, Colliers India said, “This fresh infusion, combined with the existing government contribution, will provide much-needed capital support to fuel innovation, scale emerging ventures, and drive entrepreneurship across sectors. Additionally, the introduction of a dedicated scheme for 5 lakh first-time entrepreneurs from women, Scheduled Castes, and Scheduled Tribes is a transformative move towards fostering inclusivity in the startup landscape.”

This step will certainly lead to funding opportunities, innovation, job creation and will further strengthen the startup ecosystem. Arpit Malhotra, MD, Office Services, Colliers India, shared, “Startups, especially early-stage and growth-stage ventures, will have better funding opportunities through Alternative Investment Funds (AIFs). With more financial support, startups can invest in research, product development, and technological advancements.”

“As startups scale up, they will generate employment across various sectors, contributing to economic growth. Encouraging investments in startups will help build a more robust and dynamic ecosystem, fostering entrepreneurship and attracting more investors. Indian startups will be better equipped to compete on a global scale, driving exports and positioning India as a leader in innovation,” he added.