Fresh funds for start-ups: Finance minister Nirmala Sitharaman promised a new crop of the scheme Fund of Funds for Start-ups (FFS) with a corpus of ₹10,000 crore on Saturday, reiterating the Modi government’s position on the start-up sector and innovation. The count of start-ups recognised by the department for promotion of industry and internal trade (DPIIT) has already crossed 1.5 lakh.
Launched originally in 2016, the FFS scheme has played an important role by making capital available to startups of various types, that is, early-stage, seed as well as growth-stage, without leaning too much on foreign investment. This scheme, which is administered by DPIIT and implemented by SIDBI, was earlier funded under the 14th and 15th Finance Commission cycles based on the performance and availability of funds.
Boosting Domestic Investments
According to her, this fund would also provide aid not just to small beginners but promote investments domestically into the industry.“This has led to several indigenous venture capital funds in the country that has made India a better stakeholder of the world startup hub,” Sitharaman said.
Ten years for Startup India
The renewed funding is in accordance with the action plan for Startup India, which was first announced on January 16, 2016, and has added much to the rising contours of startups in India. Increased domestic investments and innovation-led enterprises have been a result of this initiative, thus fueling entrepreneurial growth in the country.
By providing financial support and easing capital constraints, the government is pushing Indian startups to expand further and solidify its position as a global innovation leader.
