Budget 2025: Finance Minister Announces Rs 10,000 Crore Fund Of Funds For Startups

Finance Minister Nirmala Sitaraman has announced a new round of the Fund of Funds for Startups (FFS) scheme with a Rs 10,000 crore corpus in the union budget for 2025 in Parliament today. This reflects the government’s commitment to fostering innovation and entrepreneurship.

This move of the government seems promising to expand India’s startup ecosystem, as the Department for Promotion of Industry and Internal Trade (DPIIT) has recognized over 1.5 lakh startups so far.

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The FFS scheme, which was first launched in 2016, has played a key role in providing capital to startups at various stages of their establishments. It also reduces its dependence on foreign capital.

The finance minister in the union budget also highlighted that, other than supporting emerging entrepreneurs, this initiative will also catalyze domestic capital infusion. She also believes that this initiative encouraged homegrown venture capital funds, making India a stronger player in the global startup ecosystem.

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This renewed fund also aligns with the Startup India action plan, which was first unveiled in January 2016. The government has been extending support to the startup ventures by extending financial support and reducing capital constraints. Through this new round of the FFS scheme, the government aims to accelerate the growth of Indian startups and thereby strengthen the country’s position as a global innovation hub.

Moreover, encouraging entrepreneurship, the government would also launch a Rs 2 crore term loan to 5 lakh first-time women, SC, and ST entrepreneurs.