India’s NPA crisis is deepening and banks are unable to lend to Indian businesses - large or small – as liberally as they used to in the past for new technologies, building start-ups, strategic expansion or R&D. This credit crunch has led to an economic slowdown and increase in unemployment among persons with college degrees. There is, therefore, an urgent need for the Government of India to come up with laws, regulations and policies to promote the market for private capital in India, such that Indian businesses may access alternate sources of capital for growth and innovation, i.e., through sources other than banks which have been the traditional source of financial capital in the India. Over the past few decades, venture capital in India has evolved from its nascent to its sophistication level.