According to a top government official, the country’s startups would draw sizeable foreign direct investments (FDI) in 2023 as a result of the government’s efforts to improve the environment for aspiring business owners.
According to Anurag Jain, secretary at the Department for the Promotion of Industry and Internal Trade (DPIIT), India has the third-largest startup ecosystem in the world, and given how well its companies are doing, it will soon overtake other nations as the top ecosystem in the world.
“Number of recognized startups is increasing significantly; the Fund of Funds for Startups (FFS) and Startup India Seed Fund Scheme are doing good. Startups too will attract significant FDI in 2023,” Jain told as per reports.
According to him, India currently has one of the most liberalised FDI laws, with just a small number of sectors needing government permission.
The government announced the Startup India programme on January 16, 2016, with the goal of fostering innovation, entrepreneurship, and promoting private investments in the nation’s startup ecosystem.
For startups, a plan of action was also established. The plan includes 19 actions that cover a variety of topics, including simplicity and assistance, financial support and incentives, and partnerships and incubation between business and academics.
According to the qualifying requirements, DPIIT recognises organisations as startups under Startup India. As of November 30, almost 84,000 companies from all throughout the nation have received startup recognition.
The FFS programme, Startup India Seed Fund Scheme (SISFS), and Credit Guarantee Scheme for Startups (CGSS) are implemented as part of the endeavour to offer funding at different phases of a startup’s business cycle.
As of November 30, 93 AIFs (alternative investment funds) under FFS have commitments totaling 7,528 crores. 773 startups have received funding from these AIFs.
Similar to that, 126 incubators under the SISFS, which was introduced in 2021–2022, have been authorised for 455.25 crores. As of November 30, these incubators have granted about 650 requests from startups for financial support.
Only in the current fiscal year has the CGSS been announced; it is now being tested.
Global players are eager to take advantage of the benefits of the production-linked incentive plan, according to Jain.
“Several global firms are looking to shift their manufacturing bases to India,” he said, further stating that the PLI schemes in 14 sectors are expected to attract investment of ₹2.74 lakh crore.
