How is the Government Boosting the Startup Ecosystem with Over Rs 11,606 Crore?
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Synopsis
Discover how the Indian government is investing over Rs 11,606 crore to support startups through three major initiatives. This investment aims to create a thriving ecosystem for innovation and entrepreneurship, ultimately driving economic growth and job creation.
Key Takeaways
- Government's commitment: Rs 9,994 crore pledged to AIFs.
- Startup support: Three major schemes are in place for startups.
- Venture capital boost: FFS aims to catalyze investments.
- Financial assistance: SISFS supports seed-stage startups.
- Loan guarantees: CGSS facilitates collateral-free loans.
New Delhi, July 25 (NationPress) The government announced on Friday a net commitment of Rs 9,994 crore towards 141 Alternative Investment Funds (AIFs) under the Fund of Funds for Startups (FFS) scheme (as of June 30), aiming to create a robust environment for fostering innovation.
Through the ‘Startup India’ initiative, the government is executing three key schemes: FFS, Startup India Seed Fund Scheme (SISFS), and Credit Guarantee Scheme for Startups (CGSS), designed to assist startups at different stages of their development.
The FFS is intended to stimulate venture capital investment and is managed by the Small Industries Development Bank of India (SIDBI), which allocates funds to Securities and Exchange Board of India (SEBI)-registered AIFs that subsequently invest in startups, explained Minister of State for Commerce and Industry Jitin Prasada in a written reply to the Rajya Sabha.
The SISFS offers financial support to seed-stage startups via incubators. Up to now, Rs 945 crore has been sanctioned to 219 selected incubators (as of June 30), according to the minister.
The CGSS, aimed at facilitating collateral-free loans for startups through qualifying financial institutions, is managed by the National Credit Guarantee Trustee Company (NCGTC) Limited.
“As of June 30, 2025, a total of 289 loans amounting to Rs. 667.85 crore have been guaranteed for startup borrowers,” Prasada stated.
According to the Ministry of Skill Development and Entrepreneurship (MSDE), the project ‘Swavalambini’ is being executed through autonomous institutes like the National Institute for Entrepreneurship and Small Business Development (NIESBUD), Noida, and the Indian Institute of Entrepreneurship (IIE), Guwahati, in partnership with NITI Aayog and its Women Entrepreneurship Platform (WEP).
This project encompasses Entrepreneurship Awareness Training and Entrepreneurship Development Training for students, alongside a Faculty Development Programme (FDP) aimed at enhancing the capabilities of faculty members.
“As of June 30, 2025, Entrepreneurship Awareness Programmes have been conducted for 591 students and FDPs have been completed for 43 faculty members from Higher Education Institutions (HEIs),” the minister added.
Point of View
I believe that the government's substantial investment in the startup ecosystem signifies a commitment to fostering innovation and entrepreneurship in India. By supporting various stages of business development, these initiatives can potentially lead to job creation and economic growth, aligning with the nation’s vision for a robust startup culture.
NationPress
26/07/2025
Frequently Asked Questions
What is the Fund of Funds for Startups (FFS)?
The FFS is a government initiative designed to catalyze venture capital investments into startups by providing funds to registered Alternative Investment Funds (AIFs) that invest in startups.
How much funding has been approved under the Startup India Seed Fund Scheme (SISFS)?
As of June 30, Rs 945 crore has been approved to support 219 selected incubators under the SISFS.
What does the Credit Guarantee Scheme for Startups (CGSS) offer?
The CGSS provides collateral-free loans to startups through eligible financial institutions, facilitating access to necessary capital for new businesses.
What is the objective of the 'Swavalambini' project?
The 'Swavalambini' project aims to promote entrepreneurship through training programs for students and capacity building for faculty members.
How many loans have been guaranteed for startup borrowers as of June 30, 2025?
A total of 289 loans amounting to Rs. 667.85 crore have been guaranteed for startup borrowers.
