India to allocate major part of Rs 10,000 crore FFS fund to boost new age tech, AI, machine building

The Indian Ministry of Commerce and Industry is allocating a major part of the second Rs 10,000 crore fund to invigorate the startup scene, with a focus on sectors such as artificial intelligence and high-tech industries. 

The fund aims to nurture innovation and entrepreneurship and boost the morale of budding entrepreneurs in sectors such as new-age technology artificial intelligence and machine building. 

The government had announced the new Fund of Funds Scheme (FFS) with a corpus of Rs 10,000 crore in the Budget. In 2016 also, the government had launched a similar scheme.

“We are going to dedicate a lot of this Rs 10,000 crore fund of funds largely for the new age tech, AI, and machine building,” a senior govt official revealed.

SIDBI to Manage Investment Funds

Unveiled in the recent budget, this initiative will be overseen by the Small Industries Development Bank of India (SIDBI). The scheme mirrors an earlier one launched in 2016, geared towards enhancing venture capital investments. Under SIDBI's management, funds will be channelled to Alternative Investment Funds (AIFs) registered with the Securities and Exchange Board of India (Sebi), which will then invest in prospective startups.

Supporting the Startup Ecosystem

As part of the Startup India programme, which began on 16 January 2016, this scheme aims to establish a supportive ecosystem for startups. Companies meeting specific criteria can gain government recognition, making them eligible for various incentives. To date, over 1,50,000 businesses across more than 55 sectors have received this recognition, enabling them to capitalise on the benefits outlined in the Startup India action plan. 

(With PTI Inputs)