New startupss are not getting funds in Peenya Industrial area

Published on November 25, 2019 by

As per the reports of Yourstory, there is a decrease in the foreign investment funds for new start-ups for the second consecutive year. In the year 2017 Indian start-ups raised 10.2 billion dollars. It decreases to 8 billion dollars in 2018. In 2019 it decreases to 7.67 billion dollars. The decrease in foreign investment is intimidating new entrepreneurs.

Amit, the owner of Infinite Possibility says” the biggest problems are that there is no money. Product cost is a little high because are not mass producing it. We are not getting money at this point in time.”

Peenya Industrial region is the biggest industrial zone in South Asia. The economic slowdown has badly affected SMEs (small and mid-size enterprises) sector as well. Sectors like Automobiles, Real state, etc are the most affected by the slowdown. As per Peeniya industrial Association, Bangalore there is a decrease in the sale by 35 in the industry. Other factors like high taxes, the complexity of GST, etc is troubling the industry.

Vijay Kumar Makal, secretary of Peeniya says” In SMEs sector compliance cost is going up. Simplification of GST rules and regulations is a must. Labour laws should be liberalized.

In January 2019, the government eased exemptions for a new start-up. The motive behind is to motivate new entrepreneurs and start-up. There are many schemes like Startup India that were released previously to promote new start-ups.

Srinivas Asranna, President of Peeniya association says,” New satraps are facing a very tough time. Previously the market was performing well. Hence so many people get motivated for new start-ups. The government should ensure the liquidity of money for the start-up.”

However, Not only India the global market is facing a crisis due to economic slowdown. Experts predict that the slowdown is temporary and the market will again flourish.

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