India on path to become top startup ecosystem in world: DPIIT secretary Anurag Jain

New Delhi, Dec 27 (KNN) India is the third largest startup ecosystem in the world and the way startups are performing; soon the country will become a top ecosystem globally, secretary of the Department for Promotion of Industry and Internal Trade (DPIIT) Anurag Jain said on Tuesday.

Jain also pointed out that Startups in India will attract significant foreign direct investments (FDI) in 2023 as the government is taking steps to strengthen the ecosystem for budding entrepreneurs.

The startup India initiative was launched by the government on January 16, 2016 to nurture innovation, startups and encouraging private investments in the startup ecosystem.

Jain further said that India has one of the most liberalised FDI policies, wherein very few sectors require government approval.

Under Startup India, entities are recognised by DPIIT as startups as per eligibility conditions. Over 84,000 entities have been recognised as startups 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.

When asked about the production-linked incentive scheme, Jain said global players are keen to avail the benefits.

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