The Union Cabinet chaired by the Prime Minister approved the establishment of the Startup India Fund of Funds 2.0 (Startup India FoF 2.0) with a corpus of Rs 100 billion (Rs 100 bn) to mobilise venture capital for the country’s startup ecosystem. The scheme is designed to accelerate the next phase of India’s startup journey by mobilising long-term domestic capital, strengthening the venture capital ecosystem and supporting innovation-led entrepreneurship. Since the launch of Startup India in 2016 the ecosystem has grown from fewer than 500 startups to over zero point two million Department for Promotion of Industry and Internal Trade (DPIIT) recognised startups. Startup India FoF 2.0 builds on the earlier Fund of Funds for Startups 1.0 which had committed a corpus of Rs 100 billion to support alternative investment funds. That programme backed 145 alternative investment funds and supported investments across technology, manufacturing, healthcare, fintech, agritech and clean technology. Supported funds had invested over Rs 255 billion (Rs 255 bn) in more than 1,370 startups and helped crowd in private capital for emerging founders. The new fund will adopt a targeted funding approach prioritising deep tech and tech-driven innovative manufacturing, empowering early-growth founders and encouraging investment beyond major metropolitan centres so that innovation can thrive nationwide. It is intended to address high-risk capital gaps by directing greater capital to priority areas that support self-reliance and growth, while strengthening the domestic venture capital base, in particular smaller funds. Authorities expect Startup India FoF 2.0 to contribute to India’s innovation-led growth agenda by supporting startups that develop globally competitive technologies and products, strengthening economic resilience and boosting manufacturing capabilities. The fund is expected to generate high-quality employment and help position India as a global innovation hub, in line with the national vision of Viksit Bharat at 2047.