Mumbai, Aug 19 (KNN) Most of the venture capital funds coming into the country is currently going into e-commerce business but in the sectors like manufacturing, biotech and solar which can solve India’s problems, Minister of State for Finance, Jayant Sinha, has said.

"Most of the venture money is coming into e-commerce sector, but not in sectors like manufacturing, biotech and solar which can solve India's problems. We need foreign funds in these sectors," Sinha said at the launch of funds by Small Industries Development Bank of India (SIDBI) for the start-ups.

"About 90-95 percent of venture capital funds primarily come from outside India. We also need a domestic system which can fund start-ups," he said.

"We need to strive for that. We've to work on India-specific issues. Though there is capital, we are not getting the capital to solve India's problems," he added.

In his Independence Day address on Saturday, Prime Minister Narendra Modi said, "In the coming days, start-ups will be promoted in every corner of the country. Start-up India, stand up India.”

"All banks in our country must contribute to a start-up revolution. Each of the 125,000 bank branches must assist one Dalit or one tribal entrepreneur and one woman entrepreneur. They must also become entrepreneurs in future," he added.
 
SIDBI on Tuesday launched two funds for the MSME sector -  Rs 2,000-crore India Aspiration Fund (IAF) and SIDBI Make in India Loan for Enterprises (SMILE) scheme with an investment size of Rs 10,000 crore. The funds were launched by Union Finance Minister Arun Jiatley. (KNN Bureau)