"We need to increase domestic sources of capital for startups," Kant wrote in a post on X.

According to him, presently, foreign funding accounts for 75 per cent of funds flowing into Indian startups.

"A large pool of funds exists domestically and a portion should be channelled towards startups. Large institutions such as insurance companies, and pension funds, must set aside a portion of investible surpluses to invest in startups," G20 Sherpa said.

He also suggested that family businesses and offices can take on the role of angel investors or provide seed funding.

"Increased Indian funding must drive India’s startup movement. With India's innovation and ingenuity, the key lies in betting on ourselves," Kant stated.

Meanwhile, Indian startups have raised nearly $7 billion in funding during the first half (H1) of 2024, more than the $5.92 billion raised in H1 2023.

However, the figures are still far less than $20 billion in H1 2022, according to data compiled by TheKredible.

The $7 billion funding included 182 growth or late-stage deals worth $5.4 billion and 404 early-stage deals worth $1.54 billion. About 99 were undisclosed deals, reports Entrackr.