The union government has proposed to set up an expert committee to examine and suggest measures to boost venture capital (VC) and private equity (PE) investments.
Finance Miniser Nirmala Sitharaman said VCs and PE investors infused more than ₹5.5 lakh crore last year facilitating one of the largest start-up and growth ecosystems.
“Scaling up this investment requires a holistic examination of regulatory and other frictions. An expert committee will be set up to examine and suggest appropriate measures,” she said in her Budget speech.
The committee will help address issues around coordination among multiple agencies and departments such as the RBI, SEBI, Finance Ministry, DPIIT and Commerce Ministry, said Naganand Doraswamy, Founder and Managing Partner, Ideaspring Capital.
“The combined value that Indian start-ups so far have generated is more than $400 billion and this is expected to reach $1 trillion by 2025. The ecosystem hence needs specific policies and recognition as a sector. Proposal to set up an expert committee is a positive step and the industry is hopeful that some of the key issues will be resolved soon,” he added.
The proposal only highlighted the importance the government was giving the role of PE/VC industry, said Andy Khanna, partner, Deloitte India.
“Setting up an expert committee to examine the ecosystem from regulatory and other perspectives and suggest measures should help in the growth of the business. It will boost employment generation and will also lower the cost of raising capital in the country,” he added.