Industry regulations

India's Startup Ecosystem Seeks Regulatory Clarity and Investor Support

Strategic Insights

Oct 31, 2025 — 1 min read

Piyush Goyal, Union Commerce and Industry Minister, emphasized the importance of limited government intervention and fewer regulatory barriers for startups to grow faster, referencing the software industry as an example. He suggested leveraging capital from insurance companies or provident funds to support emerging ventures and drive new success stories. Goyal stated that the government is actively promoting the startup and deep-tech space with policy measures and funding commitments, supplementing public funding with private sector support to drive innovation.

Key Takeaways:

Startups in India require fewer regulatory barriers to grow faster, according to Piyush Goyal, Union Commerce and Industry Minister.
The software industry serves as a prime example of how limited government intervention can lead to significant growth.
The government is exploring the use of capital from insurance companies or provident funds to support emerging startups.
Piyush Goyal noted that innovation costs in India are significantly lower than in the US or Europe, with a 7-8X multiplier when supplementing government funding with private sector support.
The current Fund of Funds (FoF) has a corpus of Rs 10,000 crore, with an additional tranche of Rs 10,000 crore announced in April to further strengthen the deep-tech ecosystem.
The Fund of Funds scheme was first launched in 2016 with an initial corpus of Rs 10,000 crore.

Statistics:

The current Fund of Funds scheme has a corpus of Rs 10,000 crore.
An additional tranche of Rs 10,000 crore was announced in April to further strengthen the deep-tech ecosystem.
Innovation costs in India are significantly lower than in the US or Europe, with a 7-8X multiplier when supplementing government funding with private sector support.

Sources:

"ET Startup Awards 2025: Piyush Goyal, Commerce Minister Touches on Ecosystem Expansion" - Economic Times
"ET Startup Awards 2025: Piyush Goyal highlights importance of insurance firms, provident funds for startup growth" - Economic Times
"Union Budget 2025-26" - Union Government of India

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