DPIIT Meets 75 AIFs to Boost Startup Funding and Manufacturing

The Department for Promotion of Industry and Internal Trade (DPIIT) recently convened a meeting with 75 Alternate Investment Funds (AIFs) supported by the government’s Fund of Funds Scheme (FFS). The discussion centered on capital mobilization for startups and fostering a robust startup ecosystem in every district of India by 2025. Since the launch of the Startup India initiative in 2016, the number of registered startups has soared from 400 to over 158,803, spanning across 750 districts, with the aspiration to cover all 788 districts. DPIIT now seeks to steer startups towards manufacturing, aligning with its vision of building a "product nation."

DPIIT Secretary Amardeep Singh Bhatia highlighted the government’s focus on manufacturing, emphasizing the need for startups to transition from service-based solutions to product innovation. Leading companies have begun collaborating with startups through Memorandums of Understanding (MoUs), aiming to involve them in solving critical challenges and becoming incubators for innovation. DPIIT Joint Secretary Sanjiv reiterated the importance of creating momentum for manufacturing-focused incubators in 2024, underscoring the need to empower startups to meet both domestic and international demands.

The government is also actively seeking to integrate Indian startups with global markets. DPIIT is encouraging partnerships between Indian startups and international companies, allowing global enterprises to outsource challenges to Indian innovators. This collaboration is expected to attract investment from foreign sovereign and venture funds, which have expressed interest in leveraging India’s thriving startup landscape. Greater international cooperation is seen as a strategic move to position India as a global hub for innovation and manufacturing.

Under the Startup India initiative, the government has mobilized ₹21,000 crore through schemes like the Fund of Funds Scheme (FFS), the Startup India Seed Fund Scheme (SISFS), and the Credit Guarantee Scheme for Startups (CGSS). Administered by SIDBI, the FFS has catalyzed venture capital investments by providing funding to SEBI-registered AIFs, which in turn invest in startups.This comprehensive support system aims to bolster innovation, manufacturing capabilities, and job creation, furthering India’s journey towards becoming a global leader in startup development.