Union Cabinet Approves ₹10,000 Crore Startup India Fund of Funds 2.0 to Boost Innovation and Entrepreneurship

New Delhi, February 14, 2026 The Union Cabinet, chaired by Prime Minister Narendra Modi, has approved the ₹10,000 crore Startup India Fund of Funds 2.0 (FFS 2.0) to further strengthen India’s startup ecosystem. According to the Cabinet Secretariat, “The scheme is designed to accelerate the next phase of India’s startup journey by mobilising long-term domestic capital, strengthening the venture capital ecosystem, and supporting innovation-led entrepreneurship across the country.” Launched under the Startup India initiative, FFS 2.0 builds on the success of FFS 1.0, which was introduced in 2016 to address funding gaps and catalyse domestic venture capital for startups. The first fund has already committed ₹10,000 crore to 145 Alternative Investment Funds (AIFs), which have invested over ₹25,500 crore in more than 1,370 startups across sectors such as agriculture, AI, robotics, fintech, healthcare, clean technology, and manufacturing. FFS 1.0 played a key role in nurturing first-time founders and attracting private investment into India’s startup ecosystem. FFS 2.0 aims to take Indian innovation to the next level by focusing on deep tech, tech-driven manufacturing, and high-tech breakthroughs requiring patient, long-term capital. The scheme will also empower early-growth stage founders, provide a safety net for new and innovative ideas, and reduce early-stage failures caused by lack of funding. Investments will extend beyond major metro cities, encouraging innovation across the country. The fund is expected to significantly contribute to India’s innovation-led growth and economic resilience. By supporting startups that create globally competitive products and solutions, FFS 2.0 will help boost manufacturing, generate high-quality jobs, and position India as a global innovation hub. The statement added, “Aligned with the national vision of Viksit Bharat @ 2047, the Fund represents the Government’s continued commitment to empowering entrepreneurs, fostering innovation, and unlocking the full potential of India’s startup ecosystem.” Union Cabinet Approves ₹10,000 Crore Startup India Fund of Funds 2.0 to Boost Innovation and Entrepreneurship The Union Cabinet, chaired by Prime Minister Narendra Modi, has approved the ₹10,000 crore Startup India Fund of Funds 2.0 (FFS 2.0) to further strengthen India’s startup ecosystem. According to the Cabinet Secretariat, “The scheme is designed to accelerate the next phase of India’s startup journey by mobilising long-term domestic capital, strengthening the venture capital ecosystem, and supporting innovation-led entrepreneurship across the country.” Launched under the Startup India initiative, FFS 2.0 builds on the success of FFS 1.0, which was introduced in 2016 to address funding gaps and catalyse domestic venture capital for startups. The first fund has already committed ₹10,000 crore to 145 Alternative Investment Funds (AIFs), which have invested over ₹25,500 crore in more than 1,370 startups across sectors such as agriculture, AI, robotics, fintech, healthcare, clean technology, and manufacturing. FFS 1.0 played a key role in nurturing first-time founders and attracting private investment into India’s startup ecosystem. FFS 2.0 aims to take Indian innovation to the next level by focusing on deep tech, tech-driven manufacturing, and high-tech breakthroughs requiring patient, long-term capital. The scheme will also empower early-growth stage founders, provide a safety net for new and innovative ideas, and reduce early-stage failures caused by lack of funding. Investments will extend beyond major metro cities, encouraging innovation across the country. The fund is expected to significantly contribute to India’s innovation-led growth and economic resilience. By supporting startups that create globally competitive products and solutions, FFS 2.0 will help boost manufacturing, generate high-quality jobs, and position India as a global innovation hub. The statement added, “Aligned with the national vision of Viksit Bharat @ 2047, the Fund represents the Government’s continued commitment to empowering entrepreneurs, fostering innovation, and unlocking the full potential of India’s startup ecosystem.”