The Indian government plans to allocate funds to the Small Industries Development Bank of India (Sidbi) for establishing a secondary-focused fund of funds, marking a first for the Centre. This initiative aims to support venture capital firms engaged in secondary transactions, enabling timely exits for early investors. Government officials emphasize this strategy could encourage more investment in startups by ensuring exit mechanisms. The popularity of secondary transactions is evident, with Indian investors achieving over $5 billion in exits in 2024. Sidbi has already invested over Rs 11,000 crore in various funds, promoting the startup investment ecosystem under the Startup India initiative.