Mumbai, Aug 18: Most of the venture capital funding coming into the country is currently going into e-commerce business instead of into startups in areas like biotechnology and solar power, union minister Jayant Sinha said on Tuesday.
"Most of the venture money is coming into e-commerce sector, but not in sectors like manufacturing, biotech and solar which can solve India's problems.
We need foreign funds in these sectors," Sinha, minister of state for finance, said at a Small Industries Development Bank of India (SIDBI) event here to launch a fund for startups.
"About 90-95 percent of venture capital funds primarily come from outside India. We also need a domestic system which can fund start-ups," he said.
"We need to strive for that. We've to work on India-specific issues. Though there is capital, we are not getting the capital to solve India's problems," he added.
In his Independence Day address on Saturday, Prime Minister Narendra Modi, giving the call of "start up India, stand up India", said the country's youth be given opportunities and support to become entrepreneurs in their own right.
"In the coming days, start-ups will be promoted in every corner of the country. Start up India, stand up India," the prime minister said in his speech.
"All banks in our country must contribute to a start-up revolution. Each of the 125,000 bank branches must assist one Dalit or one tribal entrepreneur and one woman entrepreneur. They must also become entrepreneurs in future," he added.