Department for Promotion of Industry and Internal Trade (DPIIT) recently was in discussion with more than 70 alternate investment funds (AIFs) and it highlights the growing commitment of the government to support startups in India.
AIFs have already pledged to invest Rs 80,000 crore in startups and Rs 20,000 crore of it has been disbursed. Such funding backed by Fund of Funds Scheme of DPIIT is a gesture of the government in strengthening the entrepreneurial ecosystem in the country.
DPIIT Secretary Amardeep Singh Bhatia called for corporates to collaborate with startups as it is a practical approach to promote innovation. Large companies usually face challenges of fresh perspectives, but startups are well positioned to provide both agility and creativity. Encouraging such partnerships is sure to benefit established businesses and simultaneously to nurture new entrepreneurs.
Abolition of the angel tax in July is another step in the right direction. It has already led to “reverse flipping” equipped with startups choosing to return back to India and register here. It is a welcoming development as retaining startups are believed to strengthen local economy and enhance India’s reputation as a global innovation hub.
The push for greater international integration is also a forward-thinking move. The government is opening new avenues for growth and exposure by encouraging Indian startups to partner with global firms and solve outsourced challenges. Such collaborations can help Indian startups to scale faster and build global credibility.
The initiatives reflect a strong vision and success depends on seamless execution as well as continuous support. The efforts could transform India into a powerhouse of innovation to drive both economic growth and global impact.
