With the view of enabling India to adapt and enhance the effective system of start-ups in India, Prime Minister Narendra Modi has announced a new initiative through which a Start-up India seed fund worth Rs. 1,000 crore shall be set up to enable startups to raise their initial funding. Notably, this announcement has been made at the all-important Prarambh Start-up India International summit, 2021, hosted by the Department for Promotion of Industry and Internal Trade (DPIIT).
Mr. Narendra Modi was of the opinion that this initiative would help to start and grow new start-ups. Further he said that the Govt. was trying to create a startup system which was based on the principle ‘of the youth, by the youth and for the youth’. This initiative is said to in-turn generate job opportunities and accordingly help in achieving better life standards.
The said fund can be availed by start-ups that are in need of initial capital to start and grow their business. It is to help the budding entrepreneurs to pursue innovative ideas.
A statistical data provided by the Prime Minister depicted that India had around 41,000 Start-ups, currently. They all had spread across various sectors such as Information Technology, HealthCare, Agriculture related and so on. Out of which 11 start-ups had entered the Unicorn Club in the year 2020. It was also highlighted that the demographic structure of the business in India was being influenced by such start-ups. Further it was added that these start-ups were diversely spread as 40 per cent of such budding entrepreneurs are coming from tier II and tier III cities.
With a view to encourage the start-ups, it was said that these companies would be provided with an opportunity through the GeM portal, through which they could participate in government tenders at par with big companies. Via the said portal around 8000 start-ups registered themselves and caused a business transaction of about Rs. 2,300crore only.
Though the govt. currently is aiding the start-ups to raise their equity capital, the Prime Minister said that it would further aid them in securing debt capital in the future period.
Adding to the opinions of the Prime Minister, the Minister of Commerce and Industry, Piyush Goyal said that it was crucial to emphasize on skill development as the same would play an important role in providing the young entrepreneurs with confidence to surge through failures.
COVID-19 and Start-ups: The Prime Minister appreciated the start-ups for providing with innovative solutions to tackle various uncertainties and situations caused amidst the pandemic conditions.
It is worthy to note that the said summit marked the fifth anniversary of the Startup India initiative which was launched by the Prime Minister on January 16, 2016.
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