Piyush Goyal announces nationwide helpline to support Indian start-ups
What's the story
Union Commerce Minister Piyush Goyal has launched a dedicated helpline for Indian start-ups. The announcement was made at the Startup Mahakumbh event in New Delhi. The platform, Goyal said, will help entrepreneurs voice their grievances or suggestions directly to the government. It will enable start-ups to register complaints or give feedback on policies.
Language support
Helpline to support communication in various Indian languages
Goyal stressed that the helpline would be available for all start-ups across India. He promised that efforts would be made to facilitate communication in different Indian languages, so that start-ups from all parts of the country can easily communicate with the helpline. This move comes as part of the government's efforts to create a more inclusive start-up ecosystem, where entrepreneurs from all backgrounds/regions can raise their concerns/suggestions.
Start-up funding
Concern over investors acquiring large stakes in early-stage start-ups
Goyal also emphasized the government's support for the start-up ecosystem through the Startup India initiative's ₹10,000 crore fund of funds. He was worried about some investors taking large stakes in early-stage start-ups by investing small amounts. "I have come across cases in which a founder had to sell almost half of the stake to investors," he said, adding that by the time the company gets successful, "the founder was left with a very small amount of equity."
Fund expansion
Launch of 2nd phase of fund of funds
To tackle these issues, Goyal announced the launch of a second phase of the fund of funds, also worth ₹10,000 crore. This new round will set aside a portion specifically for smaller start-ups seeking seed funding. The first tranche of ₹2,000 crore will be released to Small Industries Development Bank of India (SIDBI) this year. This move will provide early-stage start-ups with financial support and help them retain their ownership as they grow.
Tech aspirations
Goyal's vision for India's technological future
Speaking about India's future aspirations, Goyal said, "We aspire to make our own AI model, to make our own machines. We want to be seen as a high quality and high skill nation in the world." This statement highlights the government's vision for India to emerge as a global leader in technology and innovation. It shows a commitment toward creating an environment for start-ups to explore advanced technologies and contribute meaningfully to the economy.