India is the third largest startup economy in the world. Startups are witnessing enormous growth, and millions of them are developing in India- in response to every need and demand of very consumer. Also increasing with this, is the need for these startups to get investments. We have delineated through several articles on Startup Buzz, the importance of garnering funds for startups to stay afloat and function with ease.

New companies that are rising rapidly are going to need new avenues of finance to fund them.

In response to this, the Foreign direct investment (FDI) regulations that govern startups have been significantly relaxed by the Reserve bank of India. This has further facilitated the country’s development as one of the biggest startup hubs in the world. It is also a step that has been very well received by the business-tech industry. Not only this, the RBI has also simplified several FDI tedious procedures that startup funding entails and to provide easier access to foreign capital investments.

In the early 1990s, the economy of our country was thrown open for foreign investment. This brought about radical changes that have led to rapid development and assisted in bringing our country to where it is. An upheaval, for the better will also be witnessed now, with Indian startups being funded from across the globe. The startup infrastructure in itself is going to increase manifold.

In the annual financial dialogue, that was presented by the Minister of Finance in India, Arun Jaitley, the importance of startups and its growing enterprise was delineated with vehemence. Startups were said to be an integral part of the massive ‘Make in India’ program launched by the Prime Minister, Narendra Modi.

One of the most important developments for startups that day, was the announcement of the one-day-registration. In fact, several taxes have also been exempted. Further facilitating growth of the startup ecosystem in our country.  Adding to this, the foreign direct investment was allowed up to a hundred percent. With such assistance at hand, and the norms relaxed, the startup arena here is hoped to garner immense foreign investment.

Takeaways:

• Foreign direct investment (FDI) regulations that govern startups have been significantly relaxed by the Reserve bank of India.
• RBI has also simplified several FDI tedious procedures that startup funding entails and to provide easier access to foreign capital investments.