 |
|
|
|
India Considering Incentives For VCs to Steer Towards SMEs
|
|
Indian officials are seriously considering whether or not to put incentives in place in the venture capital arena domestically due to an imbalanced trend toward later stage investments.
The official Indian government’s Department of Industrial Policy and Promotion [DIPP] is concerned that the majority of private capital is flowing to well established companies while true start-ups are languishing.
The DIPP’s Secretary R.P. Singh said this recently about small and medium sized enterprises, or SMEs ““We are trying to incentivise the SMEs, see what benefits can be given to the [foreign] venture capitalists with a focus on SMEs in the manufacturing sector.”
An official project run by Mr. Singh and the DIPP is the Delhi-Mumbai Industrial Corridor [DMIC], which aims to put focus on start-up investments in the region between the two cities.
Worldwide sources are sought, but most of the simmering interest is coming from Singapore and Japan. Both nations have a long history of investing inside India.
Singapore is especially valued for its extensive experience with business dealings inside India, while Japan is similarly valued but with a bit of an eye toward long-term debt commitments and technical know-how which can benefit start-ups.
No incentives are in place yet, but the issue was covered at a recent round-table held to discuss the DMIC. As expected, the meeting was mainly organized and attended by investors form Japan and Singapore.
|
|
|
|
|
