Panaji: The government’s Startup India fund would be disbursed much before 2024-25 as the number of startups is growing, a senior official said.
“Out of Rs 10,000 crore, much of the fund under Fund of Funds for Startups has not been sanctioned. The fund was established until 2024-25 for deployment. But I expect the disbursal to be exhausted much before that time because of the demand which is coming up and the entire system is getting fixed. We are also seeing how we can start deploying faster and also reach out to smaller start-ups, another focus area of that fund,” Deepak Bagla, MD & CEO, Invest India told IANS.
He was here for the Invest India/Start Up India event to attract venture capitalists.
Out of this Rs 10,000 crore, SIDBI, the operating agency for this fund, has committed Rs 3,123.2 crore to 49 alternative investment funds to boost startups, as per ministry data.
The government had established Rs 10,000 crore FFS to meet the financial needs of startups. The Department of Industrial Policy and Promotion (DIPP) is the monitoring agency, while Small Industries Development Bank of India (SIDBI) is the operating agency for the FFS.
Bagla said India has 25,000 startups registered. Market is looking at up to 50,000 startups which are already there. But since we have a definition of startups, the official figure is 25,000.
“As per the industry ministry definition, MSMEs are not startups in India. Startups should have an element of innovation in them. The entire pipeline of startups coming into the ecosystem is coming at a very faster rate. That’s why we are number two in having huge numbers of startups in the world as market statistics tell that India already has 45,000-50,000 startups,” he said.
“There is Vision Documents for the startup India for 2024-25. Bagla said there is no target set up as having number of startups as targets cannt be fixed for such a sector. Our job is to help creating successful start ups.”
He said ease of doing business regulation for startups is always a work in progress. This is the prime focus of the government in just 36 months. No other country in the world has moved from 144 to 60s in Ease of Doing Business rankings.
“We want to make India the number 1 startup nation. We will do whatever it requires — ecosystem , market , funding, handholding,” Bagla said.
With China and US getting maximum Venture capital funds, he said they started in 80s and 50s, we started 48 months ago, so there is a huge time lag cannot be comparable. Invest India or the National Investment Promotion and Facilitation Agency of India acts as the first point of reference for investors in India.
Invest India, set up in 2009, is a non-profit venture under the Department for Promotion of Industry and Internal Trade, Ministry of Commerce and Industry, Government of India.
Over last 48 month, state and central government have done over 13,500 policy interventions only then the needle has moved from 144 to 63, he said. India has jumped 14 places to take the 63rd position on the World Bank’s ease of doing business ranking.
The country was 77th among 190 countries in the previous ranking. In its Ease of Doing Business 2020 report, the World Bank commended the reform efforts undertaken by the country.