India Commits ₹10,000 Crore Second Tranche to Boost Deep-Tech Startups

The Government of India has announced a second tranche of ₹10,000 crore under its Fund of Funds initiative to support deep-tech startups, building on a similar ₹10,000 crore fund fully deployed earlier this year. Commerce and Industry Minister Piyush Goyal highlighted that this funding aims to promote innovation, technology absorption, and development across advanced sectors including AI, quantum computing, semiconductors, space technology, electric mobility, and defence tech. Alongside this, a $12 billion zero-interest, 50-year loan has been allocated to the Department of Science and Technology to provide flexible equity, grants, and low-cost support for technology development, enabling funds to be recycled as innovations succeed. India’s cost advantage in developing cutting-edge technology—estimated at about one-sixth the cost of Western countries—combined with strong governmental backing, positions the country to accelerate its transition from an IT services hub to a global innovator. This strategic investment in deep-tech is seen as critical for India's economic growth, national security, and its ambition to become the world's third-largest economy by 2027. The Fund of Funds model encourages private investment by sharing risk, aiming to nurture a robust technology pipeline from research to commercialization.