India announced a new $1.15 billion Fund of Funds for startups on Saturday while unveiling sweeping regulatory reforms and an ambitious nuclear energy program, as New Delhi seeks to boost tech innovation and clean energy in the world’s fifth-largest economy.
Finance Minister Nirmala Sitharaman, presenting the federal budget for 2025-26, said the fund builds on earlier startup funding programs that have already deployed more than $1 billion from alternate investment funds. The new fund will have an “expanded scope” compared to previous initiatives, though specific focus areas weren’t detailed in the budget.
She also outlined plans for a High-Level Committee for Regulatory Reforms that will review all non-financial sector regulations, certifications, licenses, and permissions within a year. The initiative aims to strengthen “trust-based economic governance” and ease compliance burdens for startups and technology companies, she said.
New Delhi will explore creating a separate Deep Tech Fund of Funds to catalyze next-generation startups working on advanced technologies, part of a broader push to strengthen India’s position in emerging tech sectors.
These measures come as India’s startup ecosystem emerges as a large jobs creator and a source of pride for the country, whose broader economy is projected to grow between 6.3% and 6.8% in the coming year. The government is betting on innovation and entrepreneurship to help achieve its longer-term goal of 8% growth needed to create adequate jobs for its young population.
India startups have attracted over $100 billion in the past decade from investors, including Norges, SoftBank, Sequoia, Accel, Tiger Global, General Catalyst, and General Atlantic. Home to over 100 unicorn startups, India has also cemented its place as perhaps the last great growth market for Silicon Valley giants.
“The first fund done a few years ago gave a huge fillip to the Indian venture capital industry,” said Sanjeev Bikhchandani, a high-profile investor who is among the earliest backers of Zomato and Policybazaar. “Dozens of Indian VC funds got set up providing risk capital to hundreds of startups. India needs domestic venture capital.”
Techcrunch eventJoin 10k+ tech and VC leaders for growth and connections at Disrupt 2025
Netflix, Box, a16z, ElevenLabs, Wayve, Sequoia Capital, Elad Gil — just some of the 250+ heavy hitters leading 200+ sessions designed to deliver the insights that fuel startup growth and sharpen your edge. Don’t miss the 20th anniversary of TechCrunch, and a chance to learn from the top voices in tech. Grab your ticket before Sept 26 to save up to $668.
Join 10k+ tech and VC leaders for growth and connections at Disrupt 2025
Netflix, Box, a16z, ElevenLabs, Wayve, Sequoia Capital, Elad Gil — just some of the 250+ heavy hitters leading 200+ sessions designed to deliver the insights that fuel startup growth and sharpen your edge. Don’t miss the 20th anniversary of TechCrunch, and a chance to learn from the top voices in tech. Grab your ticket before Sept 26 to save up to $668.
San Francisco | October 27-29, 2025 REGISTER NOWThe government also announced a $2.3 billion Nuclear Energy Mission aimed at developing at least five indigenous small modular reactors by 2033. The program is part of India’s goal to achieve 100 gigawatts of nuclear energy capacity by 2047, with planned amendments to the Atomic Energy Act to enable private sector participation.
“We are determined to ensure that our regulations keep up with technological innovations and global policy developments,” Sitharaman said in her budget speech, announcing plans to decriminalize more than 100 provisions across various laws through a new Jan Vishwas Bill 2.0.
The government also extended tax benefits for startups by five years, allowing companies incorporated before April 2030 to claim certain deductions. For startups in 27 sectors deemed crucial for India’s self-reliance goals, the government reduced guarantee fees to 1% while doubling their credit guarantee limit to $230,000.
A new scheme targeting 500,000 first-time entrepreneurs, particularly women and those from scheduled castes and tribes, will provide term loans up to $24,000 over the next five years. The program builds on lessons from the existing Stand-Up India scheme, the minister said, aiming to broaden the startup ecosystem’s reach.
To boost innovation in electronics manufacturing, a key focus area for tech startups, the government introduced a presumptive taxation scheme for non-residents involved in establishing manufacturing facilities. The budget also proposes “BharatTradeNet,” a unified platform for trade documentation and financing solutions that could benefit fintech startups.