Indian prime minister Narendra Modi made several promises in his speech to an audience of startups and venture investors on Saturday. That has instilled hope that the country might become a more attractive destination for investment, at a time when funding activity has ebbed from the highs of mid-2015.
Banks might step in to fill the gap if the proposals are implemented, feels Vinod Murali, Managing Director, InnoVen Capital. But he also cautions that past attempts have not been very successful when it comes to increasing credit availability. “The government already has a credit guarantee scheme under CGTMSE which has been operational but start-ups have struggled to get through the due process with different state-owned banks to avail funds,” said Murali in an interaction with DealStreetAsia.