Goyal urges investors to focus on entrepreneurs in small cities, towns

Commerce and Industry Minister Piyush Goyal on Wednesday urged investors to focus on entrepreneurs in small cities, foster innovation and facilitate mobilisation of domestic capital.

He said that there is a large pool of talent in India’s interiors and venture capital funds should reach out to tier 3-4 towns and cities.

Many entrepreneurs in India have their roots in small towns and rural India which started as a small unit, the minister said.

“I suggest a 4-pronged focus from the industry. Urge investors and capital providers to focus on 4 Fs – fostering innovation and future tech, facilitate mobilisation of domestic capital, fast tracking self reliance, and focus on tier 2,3,4 cities and towns,” he said while addressing the Indian Venture and Alternate Capital Association’s (IVCA) Conclave.

He added that domestic seed capital will have to increasingly play a big role.

He suggested engaging with incubators being set up all across the country.

“If the domestic venture capital industry could literally adopt some of these incubators and reach out to remote areas, it will make a difference. Also, a collective effort to put money on the table and not squeeze them out of their ideas,” he said, expressing concern that at a nascent stage, many good ideas get sold “very cheap” and get taken over with a very small ticket check for lack of alternatives by one or the other investor.

“We must also look at clawback or instruments and understanding and compassion towards the persons who come up with ideas so that they get a better deal,” he added.

Further he said that India’s exports would reach USD 400 billion this fiscal and startups can contribute significantly in achieving the targets of USD 1 trillion of goods and services exports each.

(Only the headline and picture of this report may have been reworked by the Business Standard staff; the rest of the content is auto-generated from a syndicated feed.)

Dear Reader,


Business Standard has always strived hard to provide up-to-date information and commentary on developments that are of interest to you and have wider political and economic implications for the country and the world. Your encouragement and constant feedback on how to improve our offering have only made our resolve and commitment to these ideals stronger. Even during these difficult times arising out of Covid-19, we continue to remain committed to keeping you informed and updated with credible news, authoritative views and incisive commentary on topical issues of relevance.


We, however, have a request.

As we battle the economic impact of the pandemic, we need your support even more, so that we can continue to offer you more quality content. Our subscription model has seen an encouraging response from many of you, who have subscribed to our online content. More subscription to our online content can only help us achieve the goals of offering you even better and more relevant content. We believe in free, fair and credible journalism. Your support through more subscriptions can help us practise the journalism to which we are committed.

Support quality journalism and subscribe to Business Standard.

Digital Editor