The Government will start inter-ministerial discussions to explore if small parts of pension and insurance funds could be allowed to invest in startups in India, Guru Prasad Mohapatra, secretary, Department for Promotion of Industry and Internal Trade (DPIIT) said on Saturday.
"This issue has been raised by the industry before the Minister and at the Venture Capital meet in Goa. At a conceptual level, the idea looks like a very attractive opportunity because it brings a lot of funds since pension funds and insurance funds are huge in India. Industry has presented to the government that if foreign pension funds can invest in Indian startups, why not Indian pension funds", Mr Mohapatra told IANS.
He further said the foreign pensions funds do not attract enough interest rates in their respective countries as they get in India. But pension funds are a sensitive issue as it is the lifetime savings of the working class and there is a lot of conservatism there; so they invest in government bonds with assured returns.
"Now the minister has assured the startup industry that there will be discussions with the pension funds, regulatory authorities and we will start inter-ministerial discussions", Mohapatra said.