G20 to discuss possibility of using up to 2% of GDP on startups – draft report

The group of twenty nations (G20) is being urged to consider a proposal to divert as much as 2% of the bloc’s gross domestic product towards funding startups, a draft communique by an engagement group dedicated to startups showed on Tuesday.

The report, which has received feedback from several stakeholders and will be taken up for discussion when the countries meet in June, has also suggested providing tax incentives and measures to ease the flow of capital across member nations.

India currently holds the bloc’s presidency, and is the third biggest startup hub in the world after the United States and China.

“Everyday, more and more startups are coming out with novel products and services… But to ensure the success of such ventures a sound and accessible global financing system is crucial,” the note said.

The bloc – which represents around 85% of the global GDP and over 75% of the global trade – will also discuss a framework designed to define startups globally when it meets in June, Chintan Vaishnav, India’s chair for the G20 startup group, told reporters in New Delhi.

The recommendations come as startups grapple with a funding crunch that has worsened amid high global interest rates and inflation.

The draft also suggests developing common accounting and governance standards for startups among G20 member nations to help with the flow of capital and enable cross-border listings.
Source: Reuters (Reporting by Shivangi Acharya; Editing by Nivedita Bhattacharjee)