Finance Minister Nirmala Sitharaman has reassured her support for Indian startups in light of the recent funding slowdown. Addressing concerns about the challenges faced by some startups, she emphasised that these issues should not be generalised to the entire startup ecosystem: "The problem of a few startups can't be taken as the problem of the entire startup ecosystem."
Sitharaman expressed confidence in the overall well-being of many startups, stating, "Many of them are doing alright. We don't want any sector to have any apprehension that they 'can't do business in India.'"
Dismissive of the idea that specific industries should feel incapable of conducting business in India, Sitharaman underlined the government's commitment to supporting the startup community, ensuring that they would receive all necessary assistance. "The government is very much with the startups, and startups will be given all assistance," she stated.
Her positive outlook comes amid concerns of a funding slowdown in the Indian startup landscape, with observations of a decline in valuation highs. Sitharaman clarified that the current situation is not a "funding winter" but rather a phase where funders are carefully evaluating business prospects.
She stressed the importance of investors seeking innovative startups poised for the next stage of growth, explaining, "It's not a scarcity of funds; it's more about seeing the opportunity and looking at better options among startups."
Highlighting the government's consistent support for startups since the announcement of the Startup India policy in 2016, Sitharaman expressed confidence in the resilience of the Indian startup ecosystem. Despite the funding challenges, she assured that the government's initiatives and a supportive environment would contribute to the continued growth of startups.
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