India has launched a new Rs 10,000 crore ($1.15 billion) Fund of Funds aimed at bolstering the startup ecosystem as part of the Union Budget 2025-26. Finance Minister Nirmala Sitharaman announced this initiative, which is expected to support the growth of 500 well-financed startups over the next five years. This new fund builds on the previous Fund of Funds for Startups scheme initiated in 2016. While the budget includes measures to ease middle-class tax burdens, such as eliminating income tax for those earning up to Rs 12 lakh, concerns remain regarding the overall impact on consumption and market sentiment. Economists have expressed worries about declining consumption, and although rural development initiatives and support for micro, small, and medium enterprises (MSMEs) are included, market reactions have been lukewarm, with key sectors seeing little direct benefit. In 2024, India's tech startups raised $11.3 billion in venture capital funding, reflecting a 5.6% increase from 2023 but a 56% decrease compared to 2022.