Rajeev Chandrasekhar, the Union Minister of State for Electronics and IT and Skill Development and Entrepreneurship, believes startups in India should opt for local banking partners as the Indian banking system is resilient.

The minister was speaking at a fireside chat at the Lenovo Tech World India 2023, on Thursday. The theme of the event was ‘Smarter Technology Empowering a Changing world’.

MoS Chandrasekhar also spoke about the transfer of bank deposits worth over $200 million to GIFT City, Gujarat—which he says is a sign of the Indian banking system’s strength. Startups can also benefit from special provisions available at GIFT City, the minister added.

“Today what is attractive about the banking system is not their appetite to take risks instead it is their prudency which makes them strong. What startups are looking for is not risk or risky instruments, instead they are looking for safe havens where capital can be deposited,” he said, according to Press Information Bureau.

The minister is also optimistic about India Stack. According to him, the country expects seven to eight countries to sign up for the India Stack at the India Stack Global Conference, which will be held in May.

The Digital India Act will be a game-changer for the Indian tech industry, the minister said. According to Chandrasekhar, India needs a contemporary and future-ready cyber law framework.

“The DIA will be contemporary, and future-proof for this ecosystem and can show the rest of the world what modern-day legislation for the tech ecosystem looks like,” he added.