How is India funding its innovators? Government data shows, as of October 2025, billions have been channelled to a majority of women-led startups via funds, seed support and credit guarantees.
The Indian government is backing the startup ecosystem through three flagship schemes under the Startup India initiative, with measurable funding flows now visible across various sectors, including electronics.
In a written reply to the Rajya Sabha, Minister of State for Commerce and Industry Jitin Prasada said the schemes include the Fund of Funds for Startups (FFS), the Startup India Seed Fund Scheme (SISFS) and the Credit Guarantee Scheme for Startups (CGSS). Together, they support startups at seed, growth and credit-access stages.
The Small Industries Development Bank of India implements the Fund of Funds for Startups. It provides capital to Securities and Exchange Board of India (SEBI)-registered alternative investment funds, which then invest in startups.
As per the minister’s update, between 2020 and October 31, 2025, these alternative investment funds (AIFs) invested around ₹28.389 billion in 154 women-led startups across India. Karnataka, Maharashtra, Delhi and Tamil Nadu accounted for a large share of investments.
As a matter of fact, five startups in artificial intelligence and robotics received ₹2.5412 billion. One space technology startup received ₹83.2 million. Manufacturing startups received ₹562 million, while IT and IT-enabled services drew ₹3.2327 billion. Clean technology and energy startups attracted ₹2.2712 billion.
Early-stage funding is being channelled through the Startup India Seed Fund Scheme, which has been operational since April 1, 2021. As of October 31, 2025, incubators approved ₹2.8479 billion for 1635 women-led startups. Karnataka, Maharashtra, Tamil Nadu, Gujarat and Uttar Pradesh recorded the highest number of approvals.
Defence-linked sectors featured prominently. Under SISFS, 34 women-led startups in aeronautics, aerospace and defence received ₹59.8 million. Electronics-adjacent areas also saw strong support, including 57 technology hardware startups receiving ₹100.2 million, 25 Internet of Things (IoT) startups receiving ₹35.5 million and 18 robotics startups receiving ₹39.5 million. AI startups received ₹117.3 million, while nanotechnology startups received ₹9.9 million.
Access to debt finance is supported through the Credit Guarantee Scheme for Startups, implemented by the National Credit Guarantee Trustee Company since April 1, 2023. As of October 31, 2025, 24 loans worth ₹331.7 million had been guaranteed for women-led startups. Loans were also extended to the automotive components, automotive, IT software, and electronics-linked manufacturing sectors.
The government said it does not centrally track startup success rates due to sectoral diversity. However, it continues to provide mentoring, training and outreach through programmes focused on women entrepreneurs in technology and strategic industries.
