Over 60% of sustainability startups call for increased govt support to boost funding in segment: Survey

Over 60 per cent Indian sustainability startups have demanded increased government support to fuel funding in the segment, according to a survey by Key Communications.

The survey was conducted among 200 sustainable startups from six cities, including Delhi, Pune, Mumbai, Bengaluru, Ahmedabad, and Hyderabad, Key Communication said in a statement.

According to the statement, startups from different segments such as clean tech, EV (electric vehicle), green hydrogen, solar power, eco-friendly brands, green startups, environment advisories, consultancies, climate change warriors, and green finance companies participated in the survey.

Key Communications Co-Founder Manish Sharma said in the statement that the survey highlighted the necessity of consumer awareness through various channels such as educators, researchers, media, awards, competitions, and events.

"Being a green public relations agency, I believe that consumers' access to information about eco-friendly products and their impact can significantly contribute towards a sustainable future through their purchasing decisions," he added.

The survey showed that over 60 per cent of sustainability startups in the country expect more government support to fuel funding in the segment.

Despite the rising demand for sustainability, green research & development (R&D), over one-third of businesses across the globe are facing the issue of insufficient financial resources to innovate, it stated.

And four in ten are struggling to meet the high up-front costs required for sustainable innovation, it stated.

In 2023, India has made significant progress toward a greener future and sustainable development, aiming for a Net Zero Goal by 2070.

However, the survey estimates 20 per cent (respondents) underscored the requirement of collaboration among various stakeholders in achieving net-zero goals and boosting the sustainable startup landscape.

Key findings indicate that government support, robust infrastructure, and adequate financial backing are vital for success.

Respondents identified the government's role as the key to creating a conducive environment for startups through incentives, streamlined regulations, and increased investment in research and development.

Policies such as the Faster Adoption and Manufacturing of Hybrid and Electric Vehicles (FAME) scheme have been recognised as instrumental in promoting electric mobility, it added.

As per the recent data revealed by the Government of India in 2023, over 6,600 cleantech startups are operating across 450 districts throughout India, spread over nearly 34 states and Union Territories.