<div><strong>Sumit Sharma </strong><br><br>Venture capital sector in India is awash with capital yet there are issues that need to be sorted out first, Jayant Sinha, minister of state for finance said in Mumbai on Tuesday (18 August).</div><div> </div><div>"About 90-95 per cent of the capital comes from outside India,’’ said Sinha after finance minister Arun Jaitley inaugurated two new funds by SIDBI. ``All that money is welcome. At the same time we need a domestic VC industry in India that is funding our innovators and entrepreneurs.’’</div><div> </div><div>India needs several successive waves of innovation and entrepreneurship that will lift productivity of the economy which will result in new products and services, and make India an exporting powerhouse.</div><div> </div><div>We have to put in place the infrastructure for entrepreneurship and innovation now if we have to provide sustainability and fuel for economic growth over the next five or ten or 15 years, he said.</div><div> </div><div>As in the case of China, India too needs to have a balanced domestic VC industry, said Sinha. If we have a VC industry based here in India then we will overcome the problem we are facing in terms of innovation and entrepreneurship. Today most of the money coming from outside is going to a few select areas like e-commerce.</div><div> </div><div>If we solve India’s problems related to solar technology, affordable irrigation, electric scooters, medical devices, healthcare delivery then those products and services will be exported out of India to the rest of the world whether it is Indonesia, Nigeria, Vietnam, Bolivia or other countries.</div><div> </div><div> </div>
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