Government to fund startups through five fold hike program
The ‘Startup India’ initiative pioneered by the Prime Minister Narendra Modi has garnered momentum and is being steered forth with assistance from several programs. These programs are designed to propagate the immensely growing startup sector in India. In lieu of the same, a fivefold hike program has been introduced by the government in its budget for the startups.
The department of Science and Technology, government of India, said that it would provide startups with the seed money to increase their funding, that already ranges from Rs 50 lakhs to Rs 1 crore. And for the next fiscal year, the funding has been increased significantly by the government from Rs 40 crore initially to Rs 200 crore. This is a move taken to facilitate the faster growth of startups and also to address the monetary problem that most startups face in their early stages of development.
Several new business incubators will also be developed across the country to provide skills training in technology. In lieu of the same, an amount of Rs 10 crore has been earmarked. A study conducted by this agency of the government has revealed that an initial investment of Rs 200 crore in a statup has had its value raised to Rs 4000 crore, and several hundreds of jobs have been created in the process.
It was a risky move, the department said to fund and provide money to startups but the government is keen on fuelling this sector to the fullest. And to provide the country the base for development so that the people have the necessary resources at their disposal to exploit their ideas in their entirety, and is taking several steps to ensure proper development for bolstering the startup ecosystem in India, which is touted to be the third largest in the world.
This is a move in favor of the same.