Startups will attract significant foreign direct investments in 2023: DPIIT Secy

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Secretary in Department for Promotion of Industry and Internal Trade (DPIIT) Anurag Jain said India has the third largest startup ecosystem in the world and the way startups here are performing; soon the country will become a top ecosystem globally.

Secretary in Department for Promotion of Industry and Internal Trade (DPIIT) Anurag Jain said India has the third largest startup ecosystem in the world and the way startups here are performing; soon the country will become a top ecosystem globally.

Secretary in Department for Promotion of Industry and Internal Trade (DPIIT) Anurag Jain said India has the third largest startup ecosystem in the world and the way startups here are performing; soon the country will become a top ecosystem globally.

The country’s startups will attract significant foreign direct investments (FDI) in 2023 on account of steps being taken by the government to strengthen the ecosystem for budding entrepreneurs, a top government official has said.

Secretary in Department for Promotion of Industry and Internal Trade (DPIIT) Anurag Jain said India has the third largest startup ecosystem in the world and the way startups here are performing; soon the country will become a top ecosystem globally.

“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 PTI.

Presently, India has one of the most liberalized FDI policies wherein very few sectors require government approval, he said.

The government with an intent to nurture innovation, startups and encouraging private investments in the startup ecosystem of the country launched Startup India initiative on January 16, 2016.

An action plan was also laid down for startups.

The plan comprises 19 action items spanning across areas such as simplification and handholding; funding support and incentives; and industry-academia partnership and incubation.

Under Startup India, entities are recognized by DPIIT as startups as per eligibility conditions.

Over 84,000 entities have been recognised as startups from across the country as on November 30.

Under the initiative, FFS scheme, Startup India Seed Fund Scheme (SISFS) and Credit Guarantee Scheme for Startups (CGSS) are implemented to provide capital at various stages of the business cycle of a startup.

An amount of Rs 7,528 crore has been committed to 93 AIFs (alternate investment funds) under FFS as on November 30.

These AIFs in turn have committed investments in 773 startups. Similarly, Rs 455.25 crore has been approved to 126 incubators under SISFS, which was launched in 2021-22.

About 650 startup applications have been approved by these incubators for financial assistance as on November 30.

The CGSS has been notified in the current financial year only and is implemented on a pilot basis. On the production linked incentive scheme, Jain said global players are keen to avail the benefits.

“Several global firms are looking to shift their manufacturing bases to India,” he said adding the PLI schemes in 14 sectors are expected to attract investment of Rs 2.74 lakh crore.

Key sectors such as large-scale electronics manufacturing, pharmaceuticals, telecom and networking products, food processing and white goods have contributed in achieving a considerable amount of investment, production/ sales and employment, he said.

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