India unlocks ₹10,000 crore fund to accelerate deep tech and network innovation

India’s government has notified the Startup India Fund of Funds 2.0, a ₹10,000 crore scheme designed to channel venture and growth capital into deep tech, early-stage, and innovative manufacturing startups — sectors that sit squarely at the intersection of telecom infrastructure and enterprise technology.

The scheme, to be deployed across the 16th and 17th Finance Commission cycles, targets Alternative Investment Funds (AIFs) registered with SEBI that back startups in priority areas including deep tech and technology-driven manufacturing. For the telecom and enterprise networks ecosystem, this signals potential government-backed capital flowing toward startups working on homegrown networking hardware, 5G/6G components, edge computing, cybersecurity, and AI-driven network management — areas where India has been actively pushing to reduce import dependence.

Building on the original Fund of Funds for Startups launched in 2016, the 2.0 iteration adds governance muscle, with a Venture Capital Investment Committee (VCIC) drawn from startup ecosystem veterans, an Empowered Committee for performance oversight, and provisions for co-investment by government and institutional investors.

SIDBI will serve as the primary implementation agency from the date of notification, with a second domestic agency to be selected. Operational guidelines will be issued by the Department for Promotion of Industry and Internal Trade (DPIIT).

The initiative aligns with India’s broader Viksit Bharat @ 2047 ambition and its push to position the country as a global innovation hub — including in network technology and enterprise-grade infrastructure where domestic champions remain nascent but strategically vital.

CT Bureau