Government to give the bulk of Rs. 10,000 crore (US$ 1.16 billion) startup fund to Artificial Intelligence, tech sectors: Official

The Ministry of Commerce and Industry will allocate a significant portion of the second Rs. 10,000 crore (US$ 1.16 billion) Fund of Funds Scheme (FFS) to support budding entrepreneurs, particularly in sectors like new-age technology, artificial intelligence (AI), and machine building, as per an official statement. Announced in the latest Budget, this new FFS aims to promote innovation and foster the growth of startups in emerging industries. A similar scheme was launched in 2016 with the objective of catalysing venture capital investments. 

The 2016 scheme, operationalised by the Small Industries Development Bank of India (SIDBI), provided capital to the Securities and Exchange Board of India (SEBI)-registered Alternative Investment Funds (AIFs), which then invested in startups. SIDBI is expected to manage this second FFS as well. The government's Startup India initiative, launched on January 16, 2016, aims to build a robust ecosystem for nurturing innovation and promoting startups. Over 1,50,000 entities across more than 55 industries have been recognised as startups under this initiative, making them eligible for tax and non-tax incentives provided by the government. 

Disclaimer: This information has been collected through secondary research and IBEF is not responsible for any errors in the same.