SVB crisis: CII bats for domestic financial ecosystem to support startups
With several domestic startups facing the heat due to the collapse of Silicon Valley Bank, CII President Sanjiv Bajaj on Monday said that India could look to create its own enabling financial ecosystem to support budding entrepreneurs.
Talking about the startup sector, the CII President in an interview with PTI said it is an unusual sector where the normal banking parameters do not work.
"It (startup sector) is a very high growth, it is very innovative, it is loss-making in the initial years. So, the normal banking parameters for lending don't really work. How do you create the right financial ecosystem in India to support startups because we are a startup nation," said Bajaj, who is also the Chairman and MD of Bajaj Finserv.
Observing that India is the third largest startup ecosystem in the world, he said there is a need to encourage startups.
"We have the entrepreneurial zeal, we have the technical capability and the enabling ecosystem for it, but finance is something that is ...