Prime Minister Narendra Modi, on Saturday, announced the launch of a 1,000-crore Startup India Seed Fund to financially support startups and budding entrepreneurs. The announcement was made in an online address at the two-day 'Prarambh: Startup India International Summit' which marks the fifth anniversary of Startup India Initiative launched in 2016.
Addressing attendees including entrepreneurs from Bangladesh, Bhutan, India, Myanmar, Nepal, Sri Lanka and Thailand, Modi said, "In order to provide initial capital for startups, the nation is launching a Rs 1,000 crore Startup India Seed Fund. This will help in setting up new startups and promote their growth."
"We are trying to build a startup ecosystem which functions on the 'of the youth, by the youth, for the youth' mantra," he added.
Speaking of the Startup scene in India, Modi said that India is the world's third-largest startup ecosystem with 41,000 startups across IT, health, agriculture and other sectors. While only four startups were part of the unicorn club in 2014, there are over 30 now with 11 startups joining in 2020. These startups, Modi added, are changing the "demographic characteristics of businesses." "The biggest USP of the startup world is its disruption and diversification capacity," he noted.
The Prime Minister added that India's startups must aim to become global giants in their respective service areas in the coming five years. Meanwhile, the government shall help startups raise debt capital in addition to equity capital, he added.