India Doubles Down On State-Backed Venture Capital, Approving $1.1B Fund

Lloyd
India Doubles Down On State-Backed Venture Capital, Approving $1.1B Fund
India Venture Capital Fund Targets Deep Tech Breakthroughs India has approved a $1.1 billion state-backed venture capital initiative designed to accelerate investment in artificial intelligence, advanced manufacturing, and other capital-intensive deep tech sectors. The ₹100 billion fund—cleared by the cabinet this week—operates as a fund of funds, channeling government capital through private investment firms to reach early-stage startups beyond India's traditional tech hubs. This move signals New Delhi's strategic pivot toward nurturing technologies requiring longer development cycles and larger funding rounds than conventional software ventures. Credit: Google The approval arrives more than a year after Finance Minister Nirmala Sitharaman first proposed the program in her January 2025 budget address. With deployment now greenlit, the initiative aims to address persistent funding gaps in India's innovation ecosystem while strengthening domestic venture capital capacity. Gove…