Govt should not direct public money

On being asked if an exercise similar to the production-linked incentive schemes can be undertaken to create a funding industry of some kind, Piyush Goyal said it is not impossible and a partnership between industry and government could be looked at.

“Because it’s not government’s job to be able to assess a good idea or a bad idea — we will mess it up — I think it’s better we let industry do that job,” he said.

The government cannot direct public money custodians such as insurance companies or banks to look at greater investments in startups, the minister said, adding that the public mindset is not yet mature enough to accept greater risk even if it comes with the “promise of a greater reward.”

“We’ve already seen in the past, that any losses that occur due to the risks that financial institutions take, ultimately fall on the government. And more so because all the insurance companies, banks (and) highly regulated entities, in a way are using public money,” he said.