The government could consider policies to enable insurance companies like LIC and pension funds to invest in start-ups and boost the entire ecosystem.
Speaking at the India Economic Summit 2016 on Friday, Department of Industrial Policy and Promotion (DIPP) secretary Ramesh Abhishek said: “LIC and pension funds must step in (in the start-up segment).
“EPFO had recently taken steps to increase their exposure in stock markets. So definitely, their money needs to be leveraged (for start-ups).”
Abhishek’s statement came in response to comments by Seedfund India managing partner Mahesh Murthy that large insurance firms invest mainly in stock but not in start-ups.