Chennai: The recent 'slowdown' in the Indian economy notwithstanding, start-ups are emerging and playing a crucial role of not only sustaining but also giving growth impetus to the overall economy, a KPMG report has said.
The report titled "Fintech and Start-ups Fuelling India's USD 5-trillion economy" was released by Tamil Nadu Chief Minister K Palaniswami at 'CII Connect' here on Thursday.
There was no dearth of capital flowing in in the start-up economy, it said.
The report said the golden triangle of government, private sector and academia are important players who can provide the impetus needed to grow the start-up eco system.
The 'slowdown' in the economy could be partly blamed on credit crisis due to NBFC (non-banking financial companies) funding being 'dried up' and the banking system's continued struggle with NPAs (non-performing assets), it said.
With liquidity being sucked out of the system there has been a near complete breakdown in the investment cycle, the report said.
Traditional businesses that relied on banks for funding significant portions of their planned capex were holding further investments.
This is where start-ups were emerging and playing the crucial role of not only sustaining but also giving a growth impetus to the overall economy, it said.