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The Centre is likely to consider capex-heavy sectors with long gestation periods, like electric vehicles (EVs), rocket engines, robotics, nanotechnology, semiconductor, artificial intelligence (AI), among others for Deeptech FoF
The Indian deeptech sector needs patient capital and nurturing for the startups in the segment to grow, and the FoF aims to provide this critical support, Bhatia told journalists
Bhatia said that the production linked incentive scheme for toys and leather, which was announced in the budget in July last year, will be replaced by the new schemes announced by the FM last week
The Centre is likely to consider capex-heavy sectors with long gestation periods, like electric vehicles (EVs), rocket engines, robotics, nanotechnology, semiconductor, artificial intelligence (AI), among others, for the proposed fund of funds (FoF) for the deeptech sector, Department for Promotion of Industry and Internal Trade (DPIIT) secretary Amardeep Singh Bhatia said.
The Indian deeptech sector needs patient capital and nurturing for the startups in the segment to grow, and the FoF aims to provide this critical support, Bhatia told journalists.
In her Budget 2025-26 speech, finance minister Nirmala Sitharaman said that the government would explore setting up a FoF for the deeptech sector to “catalyse next generation startups”.
The FM also said that the government will launch a new scheme to make the country a global hub for toys. Besides, she also proposed a new scheme for leather and footwear.
“To enhance the productivity, quality and competitiveness of India’s footwear and leather sector, a focus product scheme will be implemented. The scheme will support design capacity, component manufacturing, and machinery required for production of non-leather quality footwear, besides the support for leather footwear and products,” Sitharman said in her speech on Saturday (February 1).
Bhatia said that the production linked incentive scheme for toys and leather, which was announced in the budget in July last year, will be replaced by the new schemes announced by the FM last week.
Notably, the PLI scheme introduced earlier had an outlay of over INR 6,000 Cr, of which INR 3,489 Cr was for toys and remaining for footwear and leather sector.
As per government data, India’s toy imports declined 37% in the financial year 2023-24 (FY24) compared to FY15. Meanwhile, exports surged 227% in the same period.
The FM also made a number of new announcements in the budget for FY26, including setting up an Export Promotion Mission and a National Geospatial Mission.
Besides, she also said that a National Manufacturing Mission will be set up to boost domestic manufacturing. Bhatia said that the details of the mission will be finalised soon.
Sitharamanan also announced a new FoF for startups with an outlay of INR 10,000 Cr in this year’s budget as the budget for the previous FoF has been utilised.
