April 3, 2023
Approximately two hundred million dollars of the one billion dollars in funds held by Indian entrepreneurs in Silicon Valley Bank (SVB) were transferred to GIFT City, According to the minister of state for electronics and information technology.
The minister claims that the issue that was caused by the bankruptcy of the bank is now a more manageable short-term liquidity concern rather than an existential solvency situation that is impacting startups that have money tied up in the bank.
Startups from India have over $1 billion in deposits with Silicon Valley Bank. About $200 million or more of those deposits have already transferred to the GIFT City, IFSC,” the minister said during a fireside discussion at the Lenovo Tech World.
Because SVB accounts were restricted from making international transactions, the vast majority of Indian companies that had stashed money in foreign banks moved that money to other US financial institutions.
Certain Indian start-up companies, particularly those operating on a global scale, had the intention of moving some of their capital from SVB to either an Indian bank that was registered with GIFT City or to another international financial institution.
“I believe that historically, we had the propensity to view the US banking sector as the gold standard. Apparently, it isn’t. “India should be the preferred banking partner for startups because it has a more robust and resilient banking system and financial sector,” the minister said.
In response to a query regarding the Investments made by participants in the semiconductor industry, Chandrasekhar stated that the government will soon approve the first investment in semiconductor fabrication and the first packaging idea in the semiconductor industry.
He continued by saying that the government will also announce the establishment of an India semiconductor research center, which would develop expertise and resources at the cutting edge of several fields of study.
At least 7-8 nations would sign on to implement the India Stack in their governments and ecosystems at the global conference the government plans to hold in May, the minister added. He continued by saying that such implementation will enable smaller nations that don’t want to invest enormous sums of money to catch up to and surpass all other countries.
