Need To Link Startups With MSME Sector: MoS Jitendra Singh

Minister of State for Science and Technology Jitendra Singh on Friday (August 26) called for linking startups with the micro, small and medium enterprises (MSMEs). 

Addressing the 8th India International MSME and Startup Summit and Expo, Singh said that the government is taking all necessary measures including policy changes to strengthen the MSMEs. 

Touting the government’s Startup India initiative, Singh said that the programme has opened the ‘floodgates of opportunities’ for the youth.

Singh also noted that a wave of agritech startups has emerged in the country in the past few years. These startups are now solving problems related to supply chain management, improper infrastructure and inability of farmers to access a wider range of markets. 

“Many are now quitting their jobs in the IT (information technology) sector and MNCs (multinational companies) to establish their own startups, as these young entrepreneurs are now beginning to realise that investing in agriculture is one of the very few safe and profitable businesses,” he added. 

The three-day expo kicked off in New Delhi’s Pragati Maidan on Thursday and will provide a single unified platform for startups and MSMEs to interact with industry leaders and to exhibit their products.

It has so far seen a footfall of more than 20,000 visitors. More than 300 exhibitors are expected to be part of the line up, with participation by more than 30 banks and PSUs. More than 100 investors and 50 MNCs are also expected to participate in the event.

This comes at a time when the Indian startup ecosystem has been witnessing a funding slowdown. Homegrown startups raised around $7.3 Bn in the second quarter of calendar year 2022, the lowest quarterly figures in over a year. 

The ecosystem has also been marred by rising layoffs. According to data available with Inc42, 34 startups, including many unicorns such as Vedantu, Unacademy and Ola, have so far laid off more than 11,363 employees.

Weak global cues due to apprehensions of an impending recession and tightening monetary policies across the globe have made investors wary. 

Recently, MoS Singh also announced 75 high-risk collaborative grants for startups and industry bodies. Earlier, he had also directed government officials and agencies to reach out to potential startups and offer them support.