India announced sweeping regulatory reforms and an ambitious nuclear energy programme as New Delhi aims to boost technology innovation and clean energy in the world’s fifth largest economy. Presenting the 2025-26 federal budget, Finance Minister Nirmala Sitharaman said the fund builds on previous venture funding programmes that have already deployed more than $1 billion from alternative investment funds. The new fund will have an ‘expanded scope’ compared to previous initiatives, but specific areas of focus were not detailed in the budget. India will also be able to utilise these new funds for start-ups.

India announces support scheme for start-ups

He also outlined plans for the High-Level Regulatory Reforms Committee, which will review all non-financial sector regulations, certifications, licences and permits within a year. He said the initiative aims to strengthen ‘fiduciary economic management’ and ease compliance burdens for startups and technology companies. India therefore aims to create an attractive investment environment for new companies.

As part of a broader move to strengthen India’s position in emerging technology sectors, New Delhi will explore creating a separate Deep Tech Fund of Funds to mobilise the next generation of startups working on advanced technologies. These measures come as India’s startup ecosystem emerges as a major job creator and a source of pride for the country. The country’s broader economy is projected to grow between 6.3 – 6.8 per cent next year. The government is counting on innovation and entrepreneurship to achieve the 8 per cent growth target needed to create enough jobs for its young population.

Indian startups have attracted over $100 billion from investors such as Norges, Soft Bank, Sequoia, Accel, Tiger Global, General Catalyst and General Atlantic in the last decade. Home to more than 100 unicorn startups, India has cemented its place as perhaps the last great growth market for Silicon Valley giants. This support for Indian start-ups is fuelling confidence in the country’s growth potential.

Sanjeev Bikhchandani, a well-known investor who was one of the early backers of Zomato and Policybazaar: ‘The first fund a few years ago gave a huge impetus to the Indian venture capital sector. Dozens of Indian VC funds have been set up, providing venture capital to hundreds of new businesses. India needs local venture capital.’ In addition, India has created an important ecosystem for new companies and startups.