India’s Prime Minister launches $136m seed fund for startups

“We are launching a 10 billion rupee startup India seed fund to help new startups grow in the country. We are trying to create a startup system, which is based on the mantra ‘of the youth, by the youth, for the youth,'” Modi stated during the Startup India International Summit.

The summit, held on January 15 and 16, was organized by the Department for Promotion of Industry and Internal Trade of the country’s Ministry of Commerce and Industry. The Startup India Initiative was launched five years ago.

According to the prime minister, 44% of the 41,000 startups in India are now officially recognized. Among them are 5,700 information technology startups, 3,600 healthcare firms, and 1,700 agriculture-related companies.

Currently, India has over 30 startups valued at over US$1 billion, including the 11 new unicorns from last year.

“When large companies struggled to survive globally amid the pandemic, startups powered India’s drive for being self-reliant,” Modi added. “Startups stood up to meet different demands during the pandemic. From e-grocery to e-health, education to ecommerce, startups took care of everything, and they are not just restricted to metros anymore.”

Additionally, Piyush Goyal, India’s union minister for railways, consumer affairs, commerce, and industry, noted that skills development will have a part in encouraging young entrepreneurs. According to him, more people from the younger generation are looking to become job creators rather than jobseekers.