**India’s Ambitious Venture Capital Push: Doubling Down on State-Backed Support**
In a move aimed at bolstering the country’s startup ecosystem, the Indian government has approved a $1.1 billion fund-of-funds to support deep-tech and manufacturing startups. This strategic investment is a significant step towards fostering innovation and entrepreneurship in the country, and it underscores the government’s commitment to creating a robust venture capital ecosystem.
**A Growing Need for Venture Capital Support**
India’s startup landscape has been growing rapidly in recent years, with a significant increase in the number of startups and venture capital investments. However, despite this growth, the country still lags behind other major economies in terms of venture capital availability and depth. This is particularly true for deep-tech and manufacturing startups, which require significant funding to scale and achieve commercial success.
<>The lack of venture capital support for deep-tech and manufacturing startups has been a major concern for the Indian government, which has been actively working to address this issue. In 2020, the government launched the India Aspiration Fund (IAF), a $300 million fund-of-funds that invested in venture capital funds focused on supporting startups in these sectors. The success of the IAF has paved the way for the current $1.1