“Startup India will take time to pick up traction in manufacturing sector”

By admin March 29, 2016 2:54 pm IST

Unless and until funding-related challenge is addressed, Startup India will take time to pick up traction in manufacturing sector.
 With the aim of filling gaps in the economy for the growth and development of start-ups, Prime Minister Narendra Modi has kicked off the ambitious Startup India movement. L. Krishnan, Immediate Past President – IMTMA and Managing Director, TaeguTec India Pvt Ltd has spoken at length on this initiative. He also talked about ‘Skill India’ and procurement eco-system.
The government has initiated Startup India. What are the scopes for manufacturing sector in this context?Current level of activities in Startup India is more focused towards IT and IT-related services and mobile technology because there are multiple option mechanisms to fund and recognise these technologies and grow the market. When it comes to manufacturing the momentum on this area is yet to pick up. There are several reasons. One of the reasons is that for start-ups in manufacturing sector we don’t have innovative funding mechanism; funding mechanisms are through traditional banking route which is always a challenge today for SME or a start-up in manufacturing. So unless and until funding-related challenge is addressed, Startup India will take time to pick up traction in manufacturing sector.
Each of the business has different kind of ramping and traction. The scaling up methodologies is different and the dynamic of each of these industries and technologies work with different dynamics and manufacturing industry works with slightly different dynamics. Though there are a few initial private equity investors but they cater to the technology sector. We need to have several such structures to emerge even in manufacturing sector only then probably it will scale up.