Secretary of the Department for Promotion of Industry and Internal Trade (DPIIT), Anurag Jain, said that India will attract significant foreign direct investments (FDI) in 2023 as the government is taking steps to strengthen the ecosystem for budding entrepreneurs.
Jain added, India has the third-largest startup ecosystem in the world and the way startups here are performing; soon the country will become a top ecosystem globally.
The number of recognised startups is growing rapidly, and the Fund of Funds for Startups (FFS) and the Startup India Seed Fund Scheme are doing well.
He said India has one of the most liberalised FDI policies, wherein very few sectors require government approval.
On January 16, 2016, the government launched the Startup India initiative to foster innovation, startups, and private investment in the startup ecosystem.
A startup action plan was also established. The plan includes 19 action items ranging from simplification and handholding to funding support and incentives to industry-academia collaboration and incubation.
DPIIT recognises entities as startups under Startup India based on eligibility criteria. As of November 30, over 84,000 entities had been designated as startups.
The FFS scheme, Startup India Seed Fund Scheme (SISFS), and Credit Guarantee Scheme for Startups (CGSS) are implemented as part of the initiative to provide capital at various stages of a startup's business cycle.
Likewise, Rs 455.25 crore has been approved for 126 incubators under SISFS, which will be launched in 2021-22. As of November 30, these incubators had approved approximately 650 startup applications for financial assistance.
He added that several global firms are looking to shift their manufacturing bases to India. The PLI schemes in 14 sectors are expected to attract investments worth Rs 2.74 lakh crore.
The CGSS was only notified in the current fiscal year and is being implemented on a trial basis. Jain stated that global players are eager to take advantage of the production-linked incentive scheme.
He cited key sectors such as large-scale electronics manufacturing, pharmaceuticals, telecom and networking products, food processing, and white goods as having contributed significantly to increased investment, production/sales, and employment.