India Unlocks Rs 10,000 Crore Fund for Deep Tech

• ₹10,000 cr fund to boost deep-tech, network innovation
• Focus on AI, 5G/6G, semiconductors, manufacturing
• Aims to attract private capital and scale startups

India has operationalized a ₹10,000 crore Startup India Fund of Funds 2.0, aimed at accelerating investment in deep-tech innovation and next-generation network technologies, signaling a strategic push to strengthen the country’s high-tech ecosystem.

The newly notified fund is designed to channel venture and growth capital into startups working in advanced domains such as artificial intelligence, semiconductor technologies, telecom infrastructure, cybersecurity, and technology-driven manufacturing. Rather than investing directly in startups, the government will route capital through SEBI-registered Alternative Investment Funds (AIFs), enabling a multiplier effect by crowding in private capital.

A key focus area of the initiative is deep-tech and network innovation, particularly in sectors critical to India’s digital and telecom ambitions. This includes support for startups developing indigenous 5G and emerging 6G technologies, edge computing solutions, and AI-driven network management systems. The move aligns with India’s broader objective of reducing import dependence in strategic technology areas while building domestic capabilities.

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The fund builds on the earlier Fund of Funds launched in 2016, which played a pivotal role in catalyzing India’s startup ecosystem by backing over a thousand ventures through multiple AIFs. The second phase introduces enhanced governance mechanisms, including a Venture Capital Investment Committee and an Empowered Committee to oversee fund deployment and performance, ensuring more targeted and efficient capital allocation.

From a strategic perspective, the initiative addresses a critical gap in long-term funding for deep-tech startups, which typically require patient capital due to longer development cycles and higher risks. By directing capital into early and growth-stage ventures, the government aims to strengthen innovation pipelines, support advanced manufacturing, and position India as a global hub for emerging technologies.

The move also reflects a shift toward ecosystem-driven funding, where public capital is used to catalyze private investment and scale innovation across sectors. As global competition intensifies in areas like AI and semiconductors, such targeted interventions are expected to play a key role in enhancing India’s technological self-reliance and economic competitiveness.

Overall, the ₹10,000 crore fund marks a significant step in advancing India’s deep-tech ambitions, fostering innovation, and building resilient, future-ready digital infrastructure.