The Government of India is working on easier taxation, labour and registration policies for startups to give a boost to the sector. These norms will be relaxed for those that have not reached a certain benchmark of turnover. This was stated by the Secretary, Department of Industrial Policy and Promotion (DIPP) at an event yesterday.
“I think the challenge really is that how do we ensure that the startups do not have to go through any of the government procedures and regulation….Startups have to be given a major thrust. Our aim is that we should be able to create an ecosystem where manufacturing and young startups flourish.”, he said.
He also added the biggest challenge Indian industry is facing today is absence of a credible bankruptcy law that will enable easy entry and exit options. He said the Ministry of Finance is likely to come up with the law soon.
A few days ago, Union Commerce and Industry Minister had stated that the Government would ensure that startups don’t run out of money and that their equity requirements don’t go unattended.
DIPP is spearheading the Start-Up India initiative announced by the Prime Minister earlier. DIPP would start working closely with banks to kick-start the initiative in both rural and urban India. It is also working on ways to reach out to the urban educated and the deprived section of the society to build entrepreneurship.
As per estimates, there are about 3,200 tech-led startups in India, with 800 coming on board every year.