DPIIT secretary announcement: FDI for Indian Startups in 2023

According to Anurag Jain, secretary of the Department for Promotion of Industry and Internal Trade (DPIIT), FDI for Indian Startups in 2023 as the government works to improve the environment for budding entrepreneurs.

Jain said that India has the third-largest startup ecosystem in the world and given how well its startups are doing, it will soon overtake other countries as the top ecosystem in the world.

“The Fund of Funds for startups (FFS) and Startup India Seed Fund Scheme are both performing well, and the number of recognized startups is rising rapidly. In 2023, startups would also get a sizable amount of FDI” added Jain.

He said India has one of the most permissive FDI rules, with only a small number of industries requiring government permission.

On January 16, 2016, the government introduced the Startup India initiative to foster innovation, and entrepreneurship, and to encourage private investment in the startup ecosystem.

For startups, a plan of action was also established. The plan includes 19 actions that cover a variety of topics, including simplicity and assistance, financial support and incentives, and partnerships and incubation between business and academia.

According to the eligibility requirements, DPIIT recognizes entities as startups under Startup India. As of November 30, around 84,000 businesses had been designated as startups.

The FFS program, Startup India Seed Fund Scheme (SISFS), and Credit Guarantee Scheme for Startups (CGSS) are implemented as part of the endeavor to offer funding at different phases of a startup’s business cycle.

As of November 30, 93 AIFs (alternative investment funds) were given a total of Rs 7,528 crore under the FFS. In turn, these AIFs committed investments in 773 startups.
Similar to this, 126 incubators under SISFS, which was started in 2021–22, have been approved for Rs 455.25 crore. As of November 30, these incubators had granted about 650 requests from startups for financial support.

Only in the current fiscal year has the CGSS been announced; it is currently being tested.

Global players are eager to take advantage of the benefits of the production-linked incentive plan, according to Jain.

“Several multinational corporations are considering moving their manufacturing operations to India,” he added, noting that the PLI programs in 14 sectors are expected to draw in investments totaling Rs 2.74 lakh crore.

He said that important industries like large-scale electronics manufacturing, medicines, telecom and networking devices, food processing, and white goods have helped to achieve significant levels of investment, production/sales, and employment.