New Delhi, Jun 8 (PTI) Indian Startups Are Being Held Back by a Lack of Adequate Domestic Investment Due to restrictive regulations of the government, according to industry veteran and aarin capital chairman mohasas pai, Who Called for Policy Reforms and R&D Investments to Strengthen the Ecosystem.
Despite India being the World’s Third-Larges Startup Hub, Pai Cautioned That The Country Risks Falling Behind in Global Innovation Unless these challenges are added.
“We have 1,65,000 Registered Startups, 22,000 are funded.
“The biggest issue for startups is the lacked of adequate capital. Billion, OUT of which passibly 80 per cent came from overseas.
Pai pointed out that, unlike the us, where insurance companies and university endows are Major Sources of Startup Funding, INDIAN Endowments are Prohibited from Investing In Startups BY Government Policy, and Insurance Companies Remain Largely Absent due to Incomplete Regulatory Reforms.
He Advocated for regulatory changes to allow insurance companies participate in fund-of-funds and called for great flexibility in his investment structures. Pai also suggested expanding the government’s fund-of-funds program from 10,000 Crore to 50,000 Crore.
He further noted that India’s pension funds, with a corpus of 40-45 Lakh Crore, are unable to invest in Startups because of Conservative Approaches and Restrictive Regulations.
Pai stressed the importance of substantial persuet R&D Funding in Indian Universities and Encoured Organizations like DRDO to make their technologies accessible to the private sector.
He observed that current r & d speeding in public universities are significantly below international benchmarks and indequate to drive to drive meaningful innovation.
“We need to remove barriers for startups to the government and public sector units … even thinking the government has reformed it, it does not work in actual practice. Think that has to be a mind shift.
“The problem in India is that all the big companies try to beat down the Small Startups and Give them Less Money, and Force them to Sell the Technologies and Use Them, and often do the time on time.
“This Culture of Hurting The Small People Should Change,” Pai Said.