Seeking recognition from the Government for providing funds of Rs10,000 crores to the 'impact sectors' and financing the 'social enterprises', Impact Investors Council (IIC) has submitted a representation for the imminent Budget of the PM Modi's Government to the Minister of State for Finance Jayant Sinha on Wednesday.
"IIC is requesting the Government of India to partner us and help galvanize the impact investment eco-system," said IIC CEO Amit Bhatia. Impact investment has been growing at 27 per cent in India over the last seven years. With a promise to exceed Rs6000 crores annually to the mark of around Rs40,000 crores by 2020, IIC eyes for support from the Government.
With an aim to assist the impact sectors which are mainly micro, small, and medium enterprises (MSMEs), IIC facilitated these enterprises with funds. IIC invested in the social enterprises, which are working to create social and environmental changes. These are changes that involve an intention to generate positive social impact along with a return on capital.
The initial mainstream capital in the MSMEs is not adequate to provide a substantial support to the businesses which further creates a gap between the needs and the services of these businesses. Filling this gap, IIC had already invested around Rs10,000 crores in more than 300 social enterprises and across a range of industries such as agribusiness, healthcare, education, and clean energy.
Presenting the major areas that need immediate attention from the Government to boost the impact investing activity in India, IIC stated some important suggestions to the Government such as to officially recognize IIC, review the social venture fund (SVF) guidelines, extend priority sector lending to social enterprises and increase access to external commercial borrowing (ECB).