India gets FDI Boost: How Startups can benefit from it?




What media is referring to as a blow for NDA in Bihar elections might turn out to be a boon for India. With elections over, now the BJP led government has got back to changing paradigms and brining in the requisite funds.

On 10th November, 2 days after Bihar election results were announced, central government of India made some huge changes in the FDI limits. Now foreign investors and entrepreneurs can invest up to 100 percent through FDI in Private TV Channels and upto 74 percent in Private Banks. These increased limits are bound to attract an investment of 5000 crore in the coming financial year.

Though these increased limits are not going to be helpful for the Indian startups but they are going to benefit B2C and B2B startups from the other Asian countries like Philippines and Japan.

Here’s an analysis how startups from around the world are going to benefit from it:

  • Recently, Sushma Swaraj the Indian Minister of External Affairs had urged the African Government and Business Community to develop mutual trades. With African government taking requisite steps towards the same and with India increasing FDI limits the trade between the two countries will get better. African based startups can now easily provide Indian based startups with the requisite business and technological infrastructure. B2B relations are going to see a new height and from this uproar options for B2C will also increases.
  • It is only after the launch of Uber companies like Ola started in India. Uber surely is a foreign brand but its advent in the country gave people new ideas and then Ola tried to provide people with an improved experience. The new increased FDI limits are going to help people contemplate new ideas and see what new and unique can be done. The problem solvers will find a new perspective. Copying idea and improving it before implementation guarantees success like never before.
  • FDI limits of investment in private banks have also been increased. With MUDRA Yojana functioning in Rural India, small scale businesses and startups will find a new investor. They will be bound by Indian government to provide at least one small scale business in their locality with the seed fund.
  • Not only MUDRA Yojana is going to benefit from the new increased limits but also varied insurance options. With new private banks in the country, people will be able to acquire much better interest rates and also high paying investments. Life insurance will also see a new boost. People will find investment processes getting easier. The foreign private banks will find it easier to bring in the latest technology and help people get work done at much faster rate. Technologies like Chip and Pin credit and debit cards will also increase the security features.
  • Government of India has increased the Foreign Direct Investment limits in Private Channels upto 100 percent and they have also increased the limit in News Channels up to 74 percent. This new increased FDI limit will help India find an alternative for the innocuous and the paid Media. Indians will now have access to the best of news and information from around the world. As soon as the new news channels start impressing people the other news channels will get intimidated. On the other hands it is well known that foreign news channels are used to promoting startups. They will also bring in the requisite platform for Indian startups and acquiring the requisite fame will get easier

Modi Government came to power by promising Indian Citizens and Diaspora of change. Now that the Government has helped India climb varied ranking lists, it is time for the Government to introduce new rules and ease regulations that will help startups and foreign investors to come and invest. The recent moves by the government are really appreciable. India is moving towards a better tomorrow.


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