Startup India initiative of the Indian government has proved that right support can help the startup ecosystem to thrive. More than ₹21,000 crore has been invested in startups through various schemes as of October 31, 2024. Schemes such as Fund of Funds for Startups (FFS), Startup India Seed Fund Scheme (SISFS) and Credit Guarantee Scheme for Startups (CGSS) have provided the required financial backing to young businesses across industries.
The FFS was launched in 2016 and it is a prime example of the way strategic funding can boost innovation. It is managed by SIDBI and channels money into SEBI-registered Alternate Investment Funds (AIFs). It led to the investments of ₹20,572.14 crore in startups. More than ₹3,800 crore was invested in technology sectors like agri-tech, AI, clean tech, health tech and space tech between 2022 and 2023.
The SISFS was launched in 2021 and is another success story. It had approved ₹454.04 crore for startups by October 2024. Its ₹110 crore is going to cutting-edge fields like biotechnology, robotics and machine learning in just two years.
The CGSS was launched in 2023 and addresses one of the biggest challenges for the startups and it is collateral-free loans. So far it has guaranteed loans worth ₹555.24 crore. Its ₹60 crore was allotted to aerospace, IT hardware and biotechnology sectors in 2023.
The numbers reveal that the efforts of Indian government are making a real impact and startups often struggle in their early years. Such schemes provide them with the confidence and resources to innovate.
Recognizing startups is equally important. More than 1.52 lakh entities were recognized as startups by October 2024 equipped with more than 46,000 in technology-driven sectors like AI, robotics and nanotechnology.
