India Boosts Startup Ecosystem: New Fund, Helpline, and Focus on Deeptech

Second fund of funds' first instalment, Startup India Desk in works: Piyush Goyal

Piyush Goyal, union minister for commerce, also said that the second fund of funds for startups (FFS) with a corpus of Rs 10,000 crore has been approved and this year, Rs 2,000 crore will be disbursed to SIDBI as the first installment. A significant portion of the fund will be reserved for seed funding of small startups and to support deep-tech innovation.Commerce and industry minister Piyush Goyal Saturday encouraged young founders to set ambitious goals and rise beyond the limitations of the present and called upon the country's youth to lead the way in emerging sectors like AI, semiconductors and deep-tech. He also said that the second fund of funds for startups (FFS) with a corpus of Rs 10,000 crore has been approved and this year, Rs 2,000 crore will be disbursed to SIDBI as the first installment. A significant portion of the fund will be reserved for seed funding of small startups and to support deep-tech innovation. "The potential you hold will make you a great contributor to India's journey in this Amrit Kaal. Let the Startup Mahakumbh ignite aspirations that go beyond the current realm of reality," Goyal said while conferring the Startup Maharathi Awards at Startup Mahakumbh 2025. "We must unlock India's full potential through facilitation, not regulation," Goyal said. Announcing a key initiative, Goyal revealed that a dedicated Startup India Desk will be set up in the commerce and industry ministry to serve as a helpline for startups across India, accessible via a simple 4-digit toll-free number in regional languages. Fund of funds 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. Goyal said that through the FFS, India aims to foster the development of cutting-edge technologies like AI, robotics, quantum computing, machine learning, precision manufacturing and biotech. The objective is to provide early-stage financial support to budding entrepreneurs who often face challenges in accessing traditional forms of capital, scale prototypes, undertake research and development, and accelerate go-to-market strategies. The fund will especially focus on 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, according to a government statement.

Deeptech To Get Substantial Allocation In INR 10K Cr FoF

This comes a day after Goyal's comments, urging founders to shift their focus from ice cream making to high-tech sectors, stirred up a storm online Commerce minister Piyush Goyal has said that the government plans to allocate a substantial portion of the INR 10,000 Cr fund of funds (FoF) for startups for the deeptech sector. Speaking at the Startup Mahakumbh, Goyal said that the allocation will mobilise "patient capital" for research-oriented startups. This, the minister said, would foster the development of cutting-edge technologies in emerging areas such as AI, quantum computing and robotics. "We on our part, through the new fund of funds of INR 10,00 Cr, will give a substantial allocation for deeptech... This will mobilise patient capital for R&D focus on startups. Our aim will be to foster the development of cutting-edge technologies such as AI, robotics, quantum computing, machine learning, precision manufacturing, biotech and the likes," said Goyal. It is pertinent to note that finance minister Nirmala Sitharaman, in this year's Budget, proposed setting up a new FoF for startups with a corpus of INR 10,000 Cr. Meanwhile, Goyal also announced that a new dedicated helpline would be set up for startups. "I am going to start a new desk within Startup India in my ministry which will be a helpline for any startup anywhere in the country. If you face any problems with government officials, have a suggestion for regulatory reform, call that helpline. If somebody has developed a tool, which is not covered by current laws, that may need a rethinking of existing regulatory frameworks, reach out to us on the helpline," the minister said. Goyal's Comments Cook Up A Storm The announcements come barely a day after Goyal's comments on the first day of the Startup Mahakumbh 2025 stirred up a storm. At the event, the minister gave a "reality check" to Indian startups and urged the founders to shift their focus from grocery delivery and ice cream making to high-tech sectors like semiconductors, machine learning, robotics, and artificial intelligence. Noting that the "numbers" in the Indian deeptech sector were "disturbing", Goyal questioned if the founders were looking at merely dukaandari (shopkeeping, which may "create wealth in the short-term") or trying to compete globally with our innovations. . He also lashed out at Indian foodtech startups for turning unemployed youth into cheap labour. "Are we going to be happy being delivery boys and girls... Is that the destiny of India...this is not a startup, this is entrepreneurship... What the other side is doing -- robotics, machine learning, 3D manufacturing and next generation factories," Goyal said, referring to China. While many welcomed the comments and offered suggestions, the remarks also received criticism from founders and investors. Defending Indian consumer startups, Zepto cofounder and CEO Aadit Palicha said that his quick commerce startup provides livelihoods to nearly 1.5 Lakh people, contributes over INR 1,000 Cr in taxes annually, and has brought in over a billion dollars in FDI. Palicha also attributed the lack of a large-scale indigenous foundational AI model to the "fact that India has not yet built great internet companies". Meanwhile, former Infosys CFO and Aarin Capital chairman TV Mohandas Pai criticised Goyal's comments and said that comparisons with Chinese startups are unfair. He added that India also has strong players in the deeptech sector, although their number is smaller compared to some other countries.

Piyush Goyal Announces Dedicated Helpline For Startups

Goyal also said that the government plans to allocate a substantial portion of the INR 10,000 Cr FoF for startups for the deeptech sector Commerce minister Piyush Goyal has announced a new dedicated helpline for startups. Addressing the Startup Mahakumbh 2025 event, Goyal said that the helpline will help startups report "corrupt" government officials and register complaints of bribes. As per the minister, startups can also offer feedback for regulatory reforms on the helpline. "I am going to start a new desk within Startup India in my ministry, which will be a helpline for any startup anywhere in the country. If you face any problems with government officials, have a suggestion for regulatory reform, call that helpline. If somebody has developed a tool, which is not covered by current laws, that may need a rethinking of existing regulatory frameworks, reach out to us on the helpline," the minister said. Goyal also said that the Centre plans to allocate a substantial portion of the INR 10,000 Cr fund of funds (FoF) for startups for the deeptech sector. He said that the allocation will mobilise "patient capital" for research-oriented startups in areas such as artificial intelligence (AI), quantum computing and robotics. The comments came a day after Goyal kicked off a furore online after he said that Indian startups are merely building grocery delivery and ice cream companies, and not high-tech companies in areas like semiconductors, machine learning, robotics, and AI. Highlighting that the "numbers" in the Indian deeptech sector are "disturbing", Goyal lashed out at Indian consumer internet startups for turning unemployed youth into cheap labour. "Are we going to be happy being delivery boys and girls... Is that the destiny of India?... this is not a startup, this is entrepreneurship... What the other side (China) is doing -- robotics, machine learning, 3D manufacturing and next generation factories," said Goyal. While the comments were welcomed by a section of the startup ecosystem, others deemed the comparison unfair. While Zepto cofounder and CEO Aadit Palicha said that his quick commerce startup contributes over INR 1,000 Cr in taxes annually and employs 1.5 Lakh people, Aarin Capital chairman TV Mohandas Pai said that comparisons of Indian startups with their Chinese peers are unfair.