Govt to focus on funding startups in cutting-edge domains: Piyush Goyal

New Delhi: The government will focus on funding startups operating in cutting-edge domains such as artificial intelligence, machine learning, quantum computing, robotics, precision manufacturing, biotech, and semiconductor design, where long gestation periods and high capital requirements often pose hurdles, Union commerce minister Piyush Goyal said.

“By mobilising patient capital, the government aims to build a strong pipeline of indigenous technology solutions that can address national priorities and position India as a global innovation leader,” he said on the concluding day of ‘Startup Mahakumbh 2025’ in New Delhi on Saturday.

The minister unlined the government’s aspirations after the success of the first tranche of ₹10,000 crore Fund of Funds for Startups (FFS). The alternate investment funds (AIFs) for startups so far received commitments of more than ₹91,000 crore, supported with a government contribution of ₹10,000 crore in the first tranche. The Budget 2025-26 on February 1 announced the second tranche of FFS with “expanded scope” and a fresh contribution of another ₹10,000 crore.

Goyal said the second FFS with a corpus of ₹10,000 crore has been approved by Prime Minister Narendra Modi, and this year, ₹2,000 crore will be disbursed to SIDBI as the first instalment. “A significant portion of the fund will be reserved for seed funding of small startups and to support deep-tech innovation,” he added.

“Through this fund, we aim to foster the development of cutting-edge technologies like AI, robotics, quantum computing, machine learning, precision manufacturing and biotech,” the minister said.

The objective is to provide early-stage financial support to budding entrepreneurs who often face challenges in accessing traditional forms of capital, he said. This allocation will empower startups working on disruptive technologies by enabling them to scale prototypes, undertake research and development, and accelerate go-to-market strategies, he added.

The fund will especially focus on startups operating in cutting-edge domains, he said. “This initiative reflects the government’s commitment to nurturing a self-reliant and forward-looking startup ecosystem, where young innovators from every corner of India have equal access to resources and opportunities,” he said.

Goyal asked SIDBI to establish at least one support centre in every state to provide basic infrastructure and shared facilities for early-stage entrepreneurs. Recalling his interaction with a startup that had invested in its own 3D printer due to the lack of shared facilities, Goyal stressed the importance of accessible prototyping resources. “We must unlock India’s full potential through facilitation, not regulation. The Government is here to support your journey, not control it,” he said.

Goyal called upon India’s youth to lead the way in emerging sectors like AI, semiconductors and deep-tech, and shape the nation’s path to Atmanirbhar Bharat. The ‘Startup Mahakumbh 2025’ witnessed record 2.3 lakh visitors compared to 3,000 last year, underlining India’s exponential growth trajectory in the innovation space, the minister said.

At the event, Goyal proposed to launch a dedicated ‘Startup India Desk’ in the ministry of commerce and industry to serve as a helpline for startups across India, accessible via a simple 4-digit toll-free number in regional languages.

Conferring the ‘Startup Maharathi’ awards at the event the minister praised participants, stating that each one of them is a ‘Maharathi’ -- a skilled warrior and vital contributor in India’s startup revolution. “Maharathi is every one of the 2,400 participants of this grand challenge. Every one of the 3,000 exhibitors at Startup Mahakumbh is on the path to success,” he said.

Goyal said 40% of the applicants for the Maharathi Grand Challenge were from Tier 2 and Tier 3 cities, and many were women-led startups. “Women are taking a lead in India’s development and contributing with great enthusiasm,” he said.

The minister emphasised that the government is creating an enabling environment for startups through reforms in ‘ease of doing business’. “Over 40,000 compliances have been simplified or removed, and many laws have been decriminalised so that startups can work freely and fairly,” he said.