Sunday, March 26, 2023

Startups made Indian banks feel safe: IT minister – Usky News

Bengaluru: Minister of State for Electronics & IT, Rajeev Chandrasekharwhat she said after Silicon Valley Bank ,svb) crisis, startups have realized that the Indian banking system is safer and more prudent.
“The information I have gathered leads me to believe that there is north of $1 billion in SVBs from Indian startups alone. I don’t know about other banks. It was at risk and it is not at risk now. Startups have realized that the Indian banking system is a safe banking system. There are many suggestions to make the transition from foreign banks to Indian banks smooth. We are focused on that aspect. Indian banks are going to step up and do more business with startups after SVB,” he said in Bengaluru on Friday.
The collapse of SVB has affected entrepreneurs and startups globally. This was because it was the banker of choice for startups, including Indian entrepreneurs. It is common for Indian startups to join the US to receive capital from global VC firms, and the money raised was often pooled in SVBs.
Chandrasekhar said that he has detailed suggestions from 460 people in the startup ecosystem, which have been summarized in a letter to the Finance Minister. “Six suggestions have been given and our FM is working closely on the issue. I can predict today that certainly the Indian banking system will bank Indian startups during this limited crisis, but going forward, will play a bigger and deeper role in supporting startups,” he said.
On Foxconn’s plans for Karnataka, he said the Taiwanese contract manufacturer will set up its presence in India Devanahalli Area. “Apple as a brand, which is a contract manufacturer of Foxconn, is going to do a lot of manufacturing in India. This year alone they have exported around Rs 40,000 crore from India. The company’s Chairman and CEO was in Bengaluru recently and said that he is committed to making this project a reality.
The minister said that Apple will have a large presence in Bengaluru and Apple’s manufacturing ecosystem will create spillover opportunities in and around Bengaluru. “Karnataka is making strides in electronics manufacturing. It is currently led by Tamil Nadu along with Pegatron and Foxconn. This unit will ensure that Karnataka, Tamil Nadu and Noida will be the major geographies for electronics manufacturing in India in the years to come. ,


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