28 unicorns created this year show promise for Indian economy: FM Nirmala Sitharaman

Union Finance Minister Nirmala Sitharaman on Wednesday said that the country saw the creation 28 new unicorn start-ups this year. Sitharaman said that the start-ups valued at over $1 billion in India show promise for the Indian economy. She also added that the country’s economy in the last two decades has witnessed a spur of unprecedented growth.

Finance Minister Nirmala Sitharaman was addressing a virtual conference organised by the Indian Private Equity and Venture Capital Association (IVCA) when she talked about the growth of start-ups in India. According to a statement released by IVCA, the FM said that the Department for Promotion of Industry and Internal Trade (DPIIT) has recognised over 56,630 start-ups across districts throughout the country.  

"Indian startups have so far created 65 unicorns out of which 28 have been created in 2021. This shows that there is increased activity in this space and a lot of capital from angel investors. A series of reforms have been unleashed. Different capacities of Alternative Investment Fund (AIF) have been given more flexibility," Sitharaman said.

The Union Finance Minister added that due consideration must be given to investor protection as it boosts confidence for investors. She said that the investment guidelines have been issued for provident funds and superannuation funds. Sitharaman also pointed out that the window for reporting over-the-counter transactions has also been extended by three hours to ease the process.

FM Sitharaman calls for expansion of banks in remote areas

Earlier in September, Finance Minister Nirmala Sitharaman said that there are districts in the country that do not have a banking presence despite the huge thrust on financial inclusion and high commission activity. FM Sitharaman stressed the need for the presence of at least four-five SBI-sized banks in the country to meet the increasing demands of the people. She also asked the banks to get their act together and open either a full-fledged brick-and-mortar branch or an outpost rendering banking services.

The Finance Minister made it clear that there was an immediate need to escalate the banking sector to meet the increasing demands of the industry while ensuring that all trade centres in the country are incorporated with at least a single physical or digital banking presence.

"We need to scale up banking. The need is for at least four-five more SBI sized banks," she said, while reminding all that the amalgamation exercise among public sector banks has helped in moving ahead with the creation of large banks.

(With agency inputs, Image: PTI)