Indian VC funds market, although picking up,, has not attained the status of an essential mode of funding for the companies in India. Even if we look at the last budget the "pass through" status being removed means an additional burden as it would ultimately means double taxation to the VC funds first on investments and other on the profits earned by the company they are investing in. Still the players are holding the field and providing investments to new companies, but they need incentives from the Government to make VC funding a lucrative field.