In the 2021-2022 union budget, the government allotted Rs:830 crore for the fund of funds for startups, higher than the revised estimate amount of Rs:430 crore. The government had established a Fund of Funds for Startups ( FFS), the corpus being 10,000 crores. The operating agency for the FFS is the Small Industries Development Bank ( SIDBI). Initially the allotment for the fund of funds in 2021-2022 budget was Rs:1,054.97 and later it was revised to 429.99 crore. The allotment for the Startup India program has been increased marginally to 20.83 crore for 2021-2022 from the Rs:20 crore  revised estimate in 2020-2021. 

Focusing on the growth of promising entrepreneurs , the Startup India initiative is directed at nurturing and promoting innovation by creating an environment that is productive for them. The government had earmarked a total of Rs:300 crore for a credit guarantee fund. The Department for promotion of Industry and Internal Trade ( DPIIT)’s cumulative allocation had been increased to Rs:7,782.24 crore for the year 2021-22 compared to  the revised estimate of Rs:7583.06 crore in 2020 – 2021. The cumulative allocation for The Department of Commerce has also been hiked to Rs:4986 crore for 2021-2022 against the revised estimate of Rs:4,600 crore in 2020-2021. 

It is also to be noted that the total allowance for export promotion schemes like Market Access Initiative and Interest Equalisation Scheme has been hiked to Rs:2365 crore for 2021-2022 as compared to the revised estimate of Rs:2175 crore in 2020-2021.

Leave a Comment