To Boost Local Ownership, Modi Govt Plans To Give Startups Access To Pension And Insurance FundsStartup India initiative by Government of India.

To boost local ownership of startups, the Modi government plans to ease regulations to allow pension and insurance funds to flow to startups, reports The Economic Times.

In the absence of local funding, Indian startups are heavily dependent on foreign risk capital. Thus if allowed access to domestic pension and insurance funds, startups will be benefited with stable and long term capital.

“The government is seized of the fact that startups need a vast amount of capital to grow. The government is examining ways to allow pension and insurance funds to deposit a small portion of their profits in these startups,” a top official told The Economic Times.

The government also wants Indian business houses to actively fund startups so that their ownership and control remains local.

Earlier in January at the ET startup awards, Union commerce and industries minister Piyush Goyal said that foreign investors are picking up stakes in domestic startups at low valuations.

“I suggested that they (industry) create a professionally managed Rs 10,000 crore domestic fund, which can identify opportunities that come out of the startup system at an early stage,” Goyal had said.

An Appeal...

Dear Reader,

As you are no doubt aware, Swarajya is a media product that is directly dependent on support from its readers in the form of subscriptions. We do not have the muscle and backing of a large media conglomerate nor are we playing for the large advertisement sweep-stake.

Our business model is you and your subscription. And in challenging times like these, we need your support now more than ever.

We deliver over 10 - 15 high quality articles with expert insights and views. From 7AM in the morning to 10PM late night we operate to ensure you, the reader, get to see what is just right.

Becoming a Patron or a subscriber for as little as Rs 1200/year is the best way you can support our efforts.

Become A Patron
Become A Subscriber
Advertisement