G20 group seeks ₹1 tn fund every year to grow startups
how to formulate it. The platform for this will be ready in the next three-to-four months. However, it will require efforts to make sure all the heterogeneity is addressed," he added.
Saudi Arabia was the first country to endorse the proposal. “Creation of a global network will also require a focussed effort. However, what is on paper is being turned into action," he added.
India, the world’s fifth largest economy, is likely to overtake Japan to become the third-largest with a GDP of $7.3 trillion by 2030, according to rating agency S&P. Directing about 1% of the GDP toward startups will not only catalyze the growth of the ecosystem but also lead to a growth in private investments that too will fuel growth. A large chunk of the funding is expected to be in the form of private capital, Vaishnav said.
The Startup 20 working group, introduced by India under its G20 presidency, will be continued by future presidencies. “Towards Brazil, we have formed a working group to transfer all the know-how so that Startup 20 succeeds under Brazil’s presidency. It is important for Brazil and then South Africa to make a success of it, so that these groups are on a solid footing," Vaishnav said.
Vaishnav said the ongoing high interest rate regime in most economies, including advanced economies which fund startups, will impact the weaker startups. That meant even startups with strong fundamentals and value proposition may face funding difficulties. “To that extent, there will be a corrective impact, because the exuberance of investors has toned down.
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