Foreign investment in Indian startups can't be at the disadvantage of domestic investors, according to Infosys Technologies Ltd. Co-Founder NR Narayana Murthy.
Murthy, who was speaking at the technology and entrepreneurship conference Tiecon Mumbai, said that only 10-12 percent of the funds invested in the country's startups is Indian. “Today it's not a level-playing field, it's in favour of foreign investors and is somewhat unhealthy for the country,” he said, adding that he isn't against foreign investors.
Government policies were to blame, he said, as they haven't encouraged Indian entrepreneurs to get more domestic capital. “We requested the government to allow pension funds to invest in venture funds, make it attractive, and many things have been proposed.”
He expressed hope that the government will make it easier for Indian investors to fund homegrown startups. “Once that issue is tackled... that's the only way more funding will come and will remain in India and add value.”
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