3 Cheers for RBI’s Announcement and RBI Governor Urjit Patel, As he said in his first Monetary Policy Speech : “Start-ups have the potential to play a significant role in the economic development of the country and creation of jobs by spurring innovation, disruption and injecting competition”
Start-ups can now raise up to 3 Million Dollars a year through ECB – “External Commercial Borrowings”, yes 3 Million Dollars a Year.
As we all know that First Vibrant Gujarat Start-Up Summit 2016 (http://www.vgstartup.com) #VGStartup – is on the way, and going to be held at Mahatma Mandir, Gandhinagar, Gujarat, India on 21st and 22nd October 2016. Luckily Gujarat will be the first state to spark in the eyes of Foreign Investors. and this announcement of ECB will turn out to be game changes for Gujarat Start-up ecosystem.
Talking more about ECB (External Commercial Borrowings) : The Reserve Bank of India (RBI) on Tuesday said it would allow start-ups to access foreign currency loans up to 3 Million Dollars a year under the External Commercial Borrowing (ECB) route, in a statement separate from the monetary policy review. Guidelines will be issued by the end of this month.
RBI’s move is in line with the government’s push to early-stage companies through it’s Start-UP India campaign. “The avenues for start-ups will expand as it will help to ease out on liquidity part. it will be very beneficial for those who make payments in $, though they need to have necessary backup support to comply with the guidelines” said Anil Joshi, Managing partner, Unicorn India Ventures.
Over all there is some good vibe coming across at the right time before Vibrant Gujarat Start-Up Summit 2016.