Here’s how NaMo Govt. plans to bring Acche Din for social sector in India

To fund social sector initiatives and generate more jobs, the government is planning to create a Venture Capital (VC) industry.

Minister of State for Finance Jayant Sinha said on Monday: "There is one thing that we are trying to do is to create domestic VC industry that will also be able to provide funding for impact funds. We will soon be announcing our efforts in that whole area of domestic VC where funds would be available for impact funds as well."

"The first aspect is the impact investment...there is funding available for most good businesses," PTI reported, quoting him at a function organised by Axis Bank Foundation here.

'Impact investment' refers to investments made by organisations with the intention to generate a measurable, beneficial social or environmental impact in a profitable manner.

The minister added that the 2% allocation of profit made by companies as per the new Companies Act for Corporate Social Responsibility (CSR) will provide huge sums for social sectors.

"The 2% CSR funding is going to be a game changer for NGOs in India because tremendous amount of money will be available...it would be thousands of crores," he said.

India is facing many challenges including job creation, climate change and lack of scalability and innovation, according to him.

(Image: Indiatimes)