economy
February 14, 2026
India doubles down on state-backed venture capital, approving $1.1B fund
India’s $1.1B fund-of-funds will invest through private VCs to support deep-tech and manufacturing startups.
TL;DR
- India approved a $1.1 billion state-backed venture capital program to fund startups via private investors.
- The program focuses on deep tech and manufacturing sectors, requiring longer time horizons and larger capital.
- It aims to support early-stage founders and expand investment beyond major cities.
- A previous iteration launched in 2016 committed ₹100 billion to 145 private funds.
- India's startup numbers have grown from fewer than 500 in 2016 to over 200,000 today.
- Recent regulatory changes include doubling the startup classification period to 20 years and raising the revenue threshold for benefits.
- The approval coincides with the India AI Impact Summit, featuring global AI companies.
- Private capital for Indian startups has become harder to secure, with funding down and deal numbers reduced in 2025.
Continue reading
the original article