The Indian start-up ecosystem has had its shining moment in 2021. The country saw over ₹5.5 lakh crore in venture capital and private equity investments, its highest ever. Now the government wants to expand this success and plans to set up an expert committee to evaluate the venture capital ecosystem and suggest ways to ease its growth.
“Scaling this up requires holistic examination of regulatory aspects and other frictions. An expert committee will be set up to evaluate and suggest measures,” Finance Minister Nirmala Sitharaman said in her Union Budget 2022 presentation.
The FM noted that measures like MIIF, SIDBI Fund of Funds have had a multiplier effect on the start-up ecosystem.
This growth in the funding of Indian start-ups was driven by the regulatory challenges faced by investors in China, leading to reallocation of funds by foreign investors. Further, the market listing of the first batch of tech start-ups last year had showed promise in terms of returns and exits for PE investors.
The government is moving in to ride on this momentum.
Comments
Comments have to be in English, and in full sentences. They cannot be abusive or personal. Please abide by our community guidelines for posting your comments.
We have migrated to a new commenting platform. If you are already a registered user of TheHindu Businessline and logged in, you may continue to engage with our articles. If you do not have an account please register and login to post comments. Users can access their older comments by logging into their accounts on Vuukle.