The Role of Venture Capital in The Economic Development

The venture capital industry in India has grown significantly in recent years. It plays an important role in promoting a more innovative economy by providing the investment and resources needed for high-potential risky business to grow. This is very crucial for sustainable growth and for maintaining India’s competitive edge. This will need capital and other support which can be provided by venture capitalists. India requires a strong, sustainable venture capital industry to support high-potential young businesses, to ensure that they are able to grow into globally competitive firms that drive job-creation, innovation and economic growth.

The availability of venture capital financing is just one driver of a successful private sector-led venture capital sector. It is equally important to foster a strong entrepreneurial culture and well-established networks that link investors to innovative companies. These complementary elements help entrepreneurs and young firms to develop their innovative ideas into strong business plans and access new markets and customers.

This paper highlight’s and understands the position and role of the venture capital industry in the Indian economy.

Keywords: Venture Capital, Growth, Innovation, Economic Development.

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