Amidst global uncertainty, Indian start-up ecosystem continues to thrive: DPIIT

New Delhi, Apr 12 (KNN) The Indian start-ups are not facing a plunge in funding and the start-up ecosystem in the country continue to be strong and resilient, said Manmeet Nanda,  joint secretary, Department for Promotion of Industry and Internal Trade (DPIIT).

Her statement assumes significance in the wake of certain Indian start-ups and venture capital firms having exposure to the US, worrying about their funds parked with the Silicon Valley Bank, reported Economic Times.

Recently, a report published by Tracxn titled India Tech - Q1 2023, pointed out that the start-up ecosystem in India saw a considerable decline in investment in the first quarter of 2023 when compared to the same period in 2018.

“There is no need for any kind of worry. We have not seen a plunge in funding that way as our fundamentals are strong,” she said.

Nanda informed that there has been a 40 per cent growth in the number of DPIIT registered start-ups- around 29,000-in the last one year taking the total registered start-ups to 95,000.

The leading start-up sectors are healthcare, life sciences, education, agriculture, professional and commercial services. Maharashtra, Karnataka, Delhi, Uttar Pradesh and Gujarat are the leading states.

The start-up India seed fund has already approved Rs 590 crore for selective incubators. The incubators selected for these seed funds are about 155 already.

“Most of these start-ups and incubators are selected for funding belong to tier two and tier three cities,” she said.

Amid tightening liquidity conditions in the country, the union government last year notified the establishment of the Credit Guarantee Scheme for Start-ups (CGSS) to improve the availability of collateral free loans to start-ups.  (KNN Bureau)