The government has pledged an additional ₹10,000 crore under the Fund-of-Funds scheme to empower India’s deep-tech ecosystem. Announced by Commerce & Industry Minister Piyush Goyal on 5 July 2025, this funding aims to propel innovation in cutting-edge areas like AI, quantum tech, semiconductors, biotech, robotics, and advanced manufacturing
1. 💰 What’s the Big Announcement?
- The government has deployed a second ₹10,000 crore tranche for the Fund-of-Funds, following the initial ₹10,000 crore allocated in Budget 2025—which is now fully used .
- The focus is on deep-tech startups, enabling them to scale prototypes, carry out R&D, and accelerate path-to-market strategies biospectrumindia.com.
2. 🚀 Domains Targeted by the Fund
Expect significant investments in startups working on:
- Artificial Intelligence, Machine Learning, Quantum Computing
- Robotics and Precision Manufacturing
- Biotech, Semiconductor Design, EVs, Green Hydrogen, Defense Tech, Space, Drones
These sectors demand high capital and long timelines—precisely the gap this fund aims to fill
3. 🎯 Why Deep Tech Matters Now
- Strategic growth: India seeks to become a global innovator, not just a tech service hub. Goyal emphasized shifting from being a “back office” to leading in tech
- Market momentum: Deep‑tech funding surged by 78 % to $1.6 billion in 2024, fueled by Gen‑AI and policy support
- Holistic policy setup: Alignment with ‘#100DesiDeepTechs’ (a co‑initiative of Startup India, MEITY Startup Hub, IIT Madras) to identify and nurture the country’s top 100 deep‑tech startups
4. ⚠️ Risks & Challenges Ahead
A recent Parliamentary Standing Committee flagged risks of private players disproportionately benefiting from public funds, citing vague guidelines and limited return frameworks
Thus, governance and transparency will be critical to ensure the fund serves national interest while securing fair returns.
5. 🔮 What Lies Ahead?
- Policy drafts underway: Guidelines defining eligibility, fund dispersal, and performance metrics are being finalized .
- Startup momentum: Deep-tech founders now have a clearer path for patient capital to scale complex R&D.
- Collaborative growth: Expect coordination between government, academia (like IITs), investors, and industry to form a resilient deep-tech ecosystem.
📌 Why It Matters
By backing high-investment, high-impact technologies, the government is:
- Reducing India’s dependency on foreign tech imports
- Boosting job creation in R&D-intensive sectors
- Positioning India to compete in global arenas like AI, semiconductors, biotech, and green tech
