BJP promises ₹200 billion for startups now even as an existing fund remains mostly unused

Prime Minister and BJP leader Narendra Modi addresses at the release of the party's election manifesto for the 2019 Lok Sabha polls, in New Delhi, on April 8, 2019.IANS
  • The BJP’s manifesto promises a seed startup fund of ₹200 billion.
  • However, as of December 2018, the government’s ₹100 billion startup fund-of-funds had disbursed only 19% of the amount.
  • Currently, only 182 startups have been funded by the government.
India’s ruling party Bharatiya Janata Party released its election manifesto which promises to build a ‘New India of 130 crore dreams” also made way for a new Seed Startup Fund of ₹200 billion.

However, its startup fund of funds of ₹100 billion is grossly underutilized. According to a report in TOI, as of December 2018, VCs had allocated only 19% of the ₹10,000 crore funds. The report had further quoted Mohammad Mustafa, chairman and managing director of SIDBI had said that the fund-of-funds would close the financial year at ₹3,300 crores.

The current number of funded startups today stands at 182, according to the official Startup India website. The government had said that the ₹10,000 crore fund would be released in two tranches until 2025.

According to the new election Manifesto, the BJP has also promised a new scheme to provide collateral-free credit up to ₹50 lakh for entrepreneurs. The manifesto also says that 50% of the loan amount will be reserved for women entrepreneurs.

The party wants to establish 50,000 new startups by 2024 along with 500 new incubators and accelerators.

See Also:
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