Central Govt Not Doing Enough For Startups: NASSCOM President
The Startup India website lists 30,149 startups, but as of December 2017, only 74 companies had availed tax benefits.
Over three years after the Startup India scheme was announced by Prime Minister Narendra Modi, NASSCOM president Debjani Ghosh says startups have not received much support in India, barring a few exceptions.
“With investors looking for fund growth stage companies, there is a continuous decline in the (higher risk) seed stage funding. This is not a surprise, but the government can help at the seed stage, like China and Japan do,” said Ghosh. “Otherwise, it risks killing innovation.”
Gosh was speaking at the sidelines of a press event to release the 2018 edition of NASSCOM’s annual Indian Startup Ecosystem report in Bengaluru, reported HuffPost.
Reportedly, the Startup India website lists 30,149 startups, but as of December 2017, only 74 companies had availed tax benefits. Till date, the government has disbursed just about Rs 600 crore from the Fund of Funds of Rs 10,000 crore.
“The government is definitely doing some things, but the question to be asked is, ‘can it do better?’ Ghosh asked. “We need to see more organised development, and capability building, not just capacity. It’s not just signing a cheque,” Ghosh said.
PM Modi launched the programme in January 2016. So far, an industry inside told HuffPost, only 216 companies have received investments under the project.
An executive of the biggest VC funds in India, on condition of anonymity told HuffPost, “A lot of people had thought that the government will open up many opportunities, but on the ground there has been no change. There has been a lot of talk, but what have they actually done?”