Mohandas Pai calls for Rs 15K-20K cr more in startups

TV Mohandas Pai, Chairman of Aarin Capital, emphasized the need for another Rs 15,000 to 20,000 crore annually to flow into Indian startups. Currently, only 15% of the $145 billion funding comes from Indian sources. Pai stated that the challenge lies in retaining domestic capital within the country’s innovative sector, instead of it being predominantly sourced from foreign investors. The goal is to address this issue over the next five years.

On Indian startup scenario

TV Mohandas Pai: What we need is $150-200 billion of investment coming in in the next three to four years. We have got $145 billion coming in and that is the biggest thing. We need more money into startups. We need at least Rs 15,000 to 20,000 crore more coming into startups from India every year. Only 15% of the $145 billion has come from Indian capital. Our future, our most innovative sector is going to foreign capital in a big way and that is the challenge and that is what we are going to solve in the next five years.

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And talking about India being a developed economy by 2047, we are having lofty goals. How will the startup sector contribute and are we prepared to contribute to that goal?

TV Mohandas Pai: You must look at data. In 1991, we had $275 billion of GDP. In 2023, it is $3.45 trillion. We have grown at 8.2% a year for 32 years. So, India is growing very well. Our banking system is in good shape. Our top 250 companies have less debt. And all across India, we have got very good infrastructure.

Productivity is improving in the supply chain impact. A lot of entrepreneurs are coming and startups are going to lead Indian innovation to grow. By 2027, we will be a $5 trillion economy. I do not think one should have any doubt about that. In 2047, we certainly will be a developed country. There is a 90% probability. I may not be there, but you may be there to see it and we should work towards that.

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