[key points]

Key points

• •India approves a $1.1 billion state-backed venture capital program to invest in startups through private investors, focusing on deep tech, advanced manufacturing, and early-stage founders.
• •The program aims to expand investment beyond major cities and strengthen India's domestic venture capital industry, particularly smaller funds.
• •India's startup ecosystem has grown significantly, with over 200,000 startups today compared to fewer than 500 in 2016, and over 49,000 registered in 2025 alone.
• •Recent changes to India's startup rules include extending the startup classification period for deep-tech companies to 20 years and raising the revenue threshold for benefits to $33 million.
• •The approval precedes the India AI Impact Summit, featuring global AI companies and Indian corporates, highlighting India's growing attractiveness for tech expansion.
• •Despite the growth, India's startup ecosystem saw a 17% decrease in funding in 2025, with a 39% drop in the number of funding rounds, indicating increased investor selectivity.