India Pours Rp18.5 Trillion to Support Startups in the Country
India has approved a state-backed venture capital program worth Rp18.5 trillion. The program will channel government funds to startups through private investors, reinforcing India’s commitment to financing high-risk sectors such as artificial intelligence (AI), advanced manufacturing, and various fields known as deep tech.
TechCrunch reported on Saturday (2/14) that the 100 billion Rupee (Rp18.5 trillion) fund program was first announced in the January 2025 budget speech by India’s Finance Minister.
This week, more than a year after the speech, the cabinet finally gave its approval, allowing the government to begin disbursing funds.
A previous version launched in 2016 also allocated 100 billion Rupees to 145 private funds, which then invested more than 255 billion Rupees (approximately Rp47.4 trillion) in over 1,370 startups, according to official data released.
The scheme uses a “fund of funds” model, where the government does not invest directly in startups but through private venture capital firms.
The latest program is designed to be more targeted than the 2016 version, with a focus on deep tech and manufacturing startups that require longer development timelines and larger capital. The government is also targeting early-stage founders, expanding investments beyond major cities, and strengthening the domestic venture capital industry, particularly smaller funds.
IT Minister Ashwini Vaishnaw noted that the number of startups in India has surged from fewer than 500 in 2016 to more than 200,000 today. In 2025 alone, over 49,000 startups were registered — the highest on record.
The approval follows changes to startup regulations, including extending startup status for deep tech companies to 20 years and raising the revenue threshold for tax incentives, grants, and regulatory benefits to 3 billion Rupees (approximately Rp557.6 billion), up from the previous 1 billion Rupees (Rp185.8 billion).
The decision also comes ahead of the government-backed India AI Impact Summit, which will be attended by global AI companies such as OpenAI, Anthropic, Google, Meta, Microsoft, and Nvidia, alongside Indian corporations like Reliance Industries and Tata Group.
India, one of the world’s most populous nations with over one billion internet users, is increasingly attractive to global tech companies. On the other hand, private funding has become harder to secure. India’s startup ecosystem raised 10.5 billion US dollars (Rp176.7 trillion) in 2025, down more than 17 percent from the previous year. The number of funding rounds also dropped nearly 39 percent to 1,518 transactions, according to Tracxn data.
Vaishnaw emphasized that the new venture capital program will remain flexible and has undergone extensive consultation with all stakeholders.