The second phase of the Fund of Funds for Startups aims to support innovation in non-metro areas, besides reducing early-stage failure due to lack of funding, the government said on Saturday. This, along with 8 infrastructure projects with an investment of over ₹1.60 lakh crore, got a nod in the Cabinet meeting.
Union Cabinet on Friday approved the establishment of the Startup India Fund of Funds 2.0 (Startup India FoF 2.0) with a total corpus of ₹10,000 crore for the purpose of mobilising venture capital for the startup ecosystem of the country. Making the decision public on Saturday, a government statement said that the new fund will have a targeted, segmented funding approach to support breakthroughs in high-tech areas that require patient, long-term capital. It will also provide a safety net for new and innovative ideas, reducing early-stage failures caused by lack of funding.
It will encourage investment beyond major metros so that, the innovation thrives in every corner of the country. It will direct greater capital to priority areas which are important for self-reliance and boosting economic growth besides strengthening India’s domestic venture capital base, particularly smaller funds to further boost the domestic investment landscape.
According to the statement, since the launch of Startup India in 2016, India’s startup ecosystem has witnessed an extraordinary transformation growing from fewer than 500 startups to over 2 lakh Department for Promotion of Industry and Internal Trade (DPIIT)-recognised startups today, with 2025 marking the highest ever annual startup registrations. The Startup India FoF 2.0 follows the strong performance of the Fund of Funds for Startups (FFS 1.0), which was launched in 2016 to address funding gaps and catalyse the domestic venture capital market for startups.
“Under FFS 1.0, the entire corpus of ₹10,000 crore has been committed to 145 Alternative Investment Funds (AIFs). Such supported AIFs have invested over ₹25,500 crore in more than 1,370 startups across the country in sectors such as agriculture, artificial intelligence, robotics, automotive, clean tech, consumer goods & services, e-commerce, education, fintech, food & beverages, healthcare, manufacturing, space tech and biotechnology amongst others,” the statement said.
Infrastructure Projects
Meanwhile, among various infra projects, Union Cabinet approved extension corridor from Noida Sector 142 to Botanical Garden (Noida) of Noida Metro Rail Project with corridor for a length of 11.56 Km with 8 elevated stations. On operationalisation of this corridor, Noida and Greater Noida city will have 61.62 Km of active Metro Rail Network. The project cost is over ₹2,200 crore and 4 years have been earmarked for completion of the project.
The Cabinet Committee on Economic Affairs (CCEA) approved three multitracking projects covering 12 Districts across the States of Delhi, Haryana, Maharashtra and Karnataka, increasing the existing network of Indian Railways by about 389 Kms. The total estimated cost of the projects is ₹18,509 crore (approx.) and will be completed by 2030-31.
Published on February 14, 2026