India Startup Updates

The Indian startup ecosystem has seen significant developments recently. The DPIIT has set new rules for the ₹10000 crore Startup India Fund of Funds 2.0, which will invest in SEBI-registered Category I and Category II Alternative Investment Funds.
These funds will, in turn, invest in startups.
- Eligible vehicles include SEBI-registered Category I and Category II Alternative Investment Funds.
- The funds will invest in startups, providing them with the necessary capital to grow and expand.
- The government has also announced relief to borrowers under the Settlement Scheme–2026, which aims to provide relief to borrowers who are struggling to repay their loans.
- The Prime Minister has addressed business leaders in New Zealand, highlighting the opportunities for Indian businesses to invest and expand in the country.
- Funding in Indian AI startups has crossed the $1-billion mark in the first six months of 2026, as venture capital investors double down on their investments in this sector.
- There are also updates on MSME loan schemes, tax benefits for startups, and the government's focus on tech startups.