Cabinet approves Startup India Fund of Funds 2.0 with ₹10,000 cr corpus
GS3Economy · S&T · Environment · Security· Industry, investment & MSMEs· Prelims + Mains·
Why in news
The Union Cabinet approved the Startup India Fund of Funds 2.0 with a ₹10,000 crore corpus to support deep tech, early-stage companies, and tech-driven manufacturing.
Background
The Union Cabinet approved a second tranche of the Startup India Fund of Funds Scheme with a ₹10,000 crore corpus. The initiative focuses on deep tech startups, early-stage companies, and tech-driven manufacturing ventures.
Facts for Prelims
- SchemeStartup India Fund of Funds 2.0: A scheme to provide patient capital to startups.
- FactThe corpus for the second tranche of the Startup India Fund of Funds is ₹10,000 crore.
- FactThe scheme specifically targets deep tech, early-stage companies, and tech-driven manufacturing.
- PostAshwini Vaishnaw: Union Minister who emphasized operational flexibility and increased government contributions in ALFs.
For Mains
Q. Discuss how the Startup India Fund of Funds 2.0 can foster a robust deep-tech ecosystem and address the challenge of 'patient capital' for Indian startups.
Dimensions to cover in your answer
- Capital gap: Addressing the shortage of long-term patient capital for high-risk deep-tech R&D
- Operational flexibility: Balancing government oversight with the need for agile investment in Alternative Investment Funds (AIFs)
- Manufacturing synergy: Linking tech-driven manufacturing with startup innovation to enhance domestic production
Keywords: Patient capital · Deep tech · Alternative Investment Funds · Startup ecosystem · Operational flexibility
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