Startups will attract significant FDI in 2023, says DPIIT Secy

New Delhi: The country's startups will attract significant foreign direct investments (FDI) in 2023 on account of steps being taken by the government to strengthen the ecosystem for budding entrepreneurs, a top government official has said. Secretary in Department for Promotion of Industry and Internal Trade (DPIIT) Anurag Jain said India has the third largest startup ecosystem in the world and the way startups here are performing; soon the country will become a top ecosystem globally.

"Number of recognized startups is increasing significantly, the Fund of Funds for Startups (FFS) and Startup India Seed Fund Scheme are doing good. Startups too will attract significant FDI in 2023," Jain said. Presently, India has one of the most liberalized FDI policies wherein very few sectors require government approval, he said.

The government with an intent to nurture innovation, startups and encouraging private investments in the startup ecosystem of the country launched Startup India initiative on January 16, 2016.

An action plan was also laid down for startups. The plan comprises 19 action items spanning across areas such as simplification and handholding; funding support and incentives; and industry-academia partnership and incubation.

Under Startup India, entities are recognized by DPIIT as startups as per eligibility conditions.