Not sure. Has ICFOSS come out with some ground breaking FOSS technology?
Most of these things boil down to your opinion. If you are of a more libertarian bent, you don’t want the government to invest in things that society can easily provide for. Software companies in India (not “startups”) make thousands of crores in profits and they should be funding FOSS if anything. Bigger governments means more jobs for bureaucrats, whose mission then becomes to protect the bureaucracy.
Check this thread: RFC: Community positions on digital services / DPGs? run by governments