[Union Budget 2021] Government Allocates ₹830 Cr For Fund of Funds For Startups
The Government of India has allocated ₹830 crores for the Fund of Funds for Startups in the Budget 2021-22. The amount is higher than the revised estimate of about ₹430 crores.
The government has set up a Fund of Funds for Startups (FFS) with a corpus of ₹10,000 crores. The Small Industries Development Bank of India (SIDBI) is the operating agency for the FFS.
The allocation for the fund of funds in Budget 2020-21 was ₹1,054.97 core, but it was revised to ₹429.99 crores.
As per the Budget documents, the allocation for Startup India programme has been increased marginally to ₹20.83 crores for 2021-22 from the revised estimate of ₹20 crores in 2020-21.
Startup India is a flagship initiative of the Government of India, intended to catalyse startup culture and build a strong and inclusive ecosystem for innovation and entrepreneurship in India.
Additionally, the government has earmarked ₹300 crores for credit guarantee fund.
The cumulative allocation for the Department for Promotion of Industry and Internal Trade (DPIIT) has been hiked to ₹7,782.24 crores for 2021-22 as against the revised estimate of ₹7,583.06 crores in 2020-21.
Also, the total allocations for export promotion schemes, such as Market Access Initiative and Interest Equalisation Scheme, has been increased to Rs 2,365 crore for 2021-22 as against the revised estimate of Rs 2,175 crore in 2020-21.