India doubles down on state-backed venture capital, approving $1.1B fund | TechCrunch
TechCrunch
by Jagmeet SinghFebruary 14, 2026
AI-Generated Deep Dive Summary
India has launched a new $1.1 billion state-backed venture capital initiative designed to support high-risk sectors like artificial intelligence and advanced manufacturing, commonly referred to as deep tech. Unlike previous programs, this fund-of-funds model channels government money through private investors, aiming to target startups that require longer time horizons and larger capital investments. The program, which received cabinet approval in late 2025 after being proposed in the January budget, is part of India's broader strategy to boost its domestic startup ecosystem.
The initiative builds on the success of a previous $100 million fund launched in 2016, which invested over $2.8 billion across 145 private funds and supported more than 1,370 startups. This new program doubles down on this approach by focusing on early-stage founders, expanding investment beyond major cities, and strengthening smaller domestic venture capital firms. The Indian government has also introduced measures to ease the burden
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Originally published on TechCrunch on 2/14/2026