The Indian government plans to allocate a fund to the Small Industries Development Bank of India (SIDBI) to support venture capital investors in secondary transactions. This initiative aims to enable timely exits for investors, reducing pressure from liquidity constraints. The government believes that such a fund will prevent hasty investment decisions, similar to successful models in the US and China. Recently, two India-focused funds for secondary transactions were launched, highlighting a growing trend. Additionally, the government has introduced various initiatives, including the Startup India initiative and the Startup India Seed Fund Scheme, to foster innovation and entrepreneurship in India.

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