Finance Minister Nirmala Sitharaman announced a ₹10,000 crore ‘Fund of Funds’ to expand support for India’s startup ecosystem. The new credit scheme aims to protect first-time entrepreneurs from marginalised communities.

The plan is reinforce capital availability for startups by enabling greater downstream investments through registered venture funds. The move is based on previous government-backed funding initiatives. The announcement comes at a time when access to risk capital remains rough across early-stage ventures.

In a simultaneous announcement, Sitharaman also announced a targeted scheme for 5 lakh first-time women. This included Scheduled Caste (SC) and Scheduled Tribe (ST) entrepreneurs. The government will provide term loans of up to ₹2 crore with a tenure of 5 years. This will improve access to credit for new business founders, who otherwise face higher entry barriers in formal lending markets.

The new Fund of Funds aims to diversify the financing base for startups by channelling capital through alternative investment funds rather than doing it through direct government participation. The announcement re-confirms the government’s focus on innovation-led growth, particularly in technology, manufacturing and emerging sectors aligned with domestic value creation.

The dedicated loan scheme signals the government’s aim of ‘inclusive entrepreneurship’. The Budget signals continuity of policy support for startups and small businesses, with financing tools positioned as a key lever to sustain private investment and broad-based economic participation.