India Launches Second Fund for Startups

The Indian government is launching a new fund to help startups, especially those working on advanced technology and manufacturing.

This fund, called the second Fund of Funds, has Rs 10,000 crore to support these startups.

The government wants to help them grow by providing money and other support, like help with managing their products and preparing for exports.

The first fund helped many startups, and this new one will focus more on technology that takes a long time to develop.

The government also has programs to help startups with patents and mentoring.

National Startup Day 2026 marks a shift in how Indian startups are being built.

Capital is moving into deep tech, semiconductors, and applied AI, which means founders are now solving harder, more regulated problems, not just building consumer apps.

At the same time, senior engineering and AI talent is being absorbed by global capability centres, forcing startups to operate with leaner teams and far stronger internal systems.

Policy changes like the removal of angel tax and the push for ESOP clarity are quietly turning talent and capital into strategic infrastructure.