Union Minister Nirmala Sitharaman today expressed the hope that Budget 2016-17, to be present next week, will allocate required funds for Start-up India programme.
She said her ministry, Commerce and Industry, will do its best to solve the financial difficulties being faced by start-ups.
Speaking on the "role of Centre through Start-up India initiative" at a programme here, the minister said "the government, I am sure, will be a lot more flexible in dealing with issues raised by start-ups and we are not just looking at tech-based or application-based start-ups".
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She added: "With the kind of start-ups and the kind of activity generated, India was ranked third globally and this cannot happen unless there was ground swell for it and youth are already at it."
Stating that she would rather put a lot of energy in pure science related matters, health, space and defense, Sitharaman said she saw everything going in favour of Coimbatore to be the start-up capital.
"You have everything, with a bit more energy and push from several quarters you can create and sustain an ecosystem which can support a lot of youngsters, who are talented and skilled," she said.
Tamil Nadu will benefit from it and we are with you in whatever you want to do, she assured.
Expressing concern over paucity of women entrepreneurs in Start-ups, just 8 per cent, she said women have uncanny ability to notice where the problems existed and urged them to start new ventures, as was done by Padmashree awardee Arunachalam Muruganantham, who came out with napkin machines.
Prime Minister Narendra Modi brought in a change in the mindset, trusted the people and the first decision that we took was self-certification.
The government launched the start-up initiative only to motivate the people and give it a greater push.
"During Startup India policy announcement, government had proposed of creating the fund of funds’ of about $1.5 billion corpus which will be deployed in tranches over a period of four years. This will definitely provide some boost but we expect a detailed roadmap for its implementation with minimal bureaucratic intervention in the upcoming Union Budget. Besides equity as a mode of capital, which till date the startups have been used to, government should also explore alternate ways of raising funds like Venture debt. Removal of “angel tax” may be crucial to foster the start-up eco-system in India at a time when banks and venture capital funds are pulling away from providing financial aid to such companies," said Manish Kumar, Co-founder & CEO GREX.
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