The government will launch a Rs 1,000-crore seed fund for startups, called Startup India Seed Fund, which will help startups with the initial capital for growth and operations, Prime Minister Narendra Modi said on Saturday addressing to ‘Prarambh: Startup India International Summit’.
The summit marked the fifth anniversary of the ‘Startup India’ initiative launched by Modi on this day in 2016.
Earlier Prime Minister Narendra Modi, on August 15 while addressing the nation on the occasion of India’s 74th Independence Day, launched the tech-based National Digital Health Mission (NDHM) to revolutionize the Indian health sector.
Modi said that the now Indian startups are not depend on big cities and about 40 per cent of such budding entrepreneurs were coming from tier-II and -III cities.
“Going ahead, the government will provide guarantees to help startups raise debt-capital. We are trying to build a startup ecosystem which functions on the ‘of the youth, by the youth, for the youth’ mantra,” the Prime Minister said.
In the speech, PM Modi said the target for India’s startups over the next five years should be to become global giants in their respective service areas.
“Our startups should lead in futuristic technologies. If all BIMSTEC (Bay of Bengal Initiative for Multi-Sectoral Technical and Economic Cooperation) countries push for this, a large population would benefit from this,” the Prime Minister added.
In August, the ministry had launched a fund to identify 300 startups which would be provided seed fund of up to Rs 25 lakh and other facilities as well. A budget of Rs 95.03 crore has been earmarked for the programme named ‘Chunauti’, to be spent over a period of three years.
The new seed fund for startups comes after the Ministry of Electronics and Information Technology had earlier last year initiated a similar fund to identify startups and give them financial help.
Indian tech startups belong to edu-tech, agri-tech, supply chain, logistics, and transport management, as well as medical healthcare, diagnostics, preventive and psychological care are sectors get benefit of the new seed fund.
There are over 41,000 startups in the country incl nearly 5,700 startups in IT sector, 3,600 in the health sector and 1,700 startups in agriculture, among these 34 are Unicorn startups. In 2020, 11 new Unicorn startups added in Indian startups ecosystem.