The one ingredient of a strong relationship between any two individuals/organisations is the clarity of communication. The Indian government wants to establish this very thing between itself and the country’s flourishing startup industry.
Nirmala Sitharaman, the Indian Commerce minister, recently chaired a meeting with about 30 startups in regards to getting a nerve of the industry and understand the issues being faced by them.
The Indian startup industry currently holds the third position in the world in terms of number of active startups, right behind the United States and United Kingdom. The government aims to ensure that the industry receives the policy support it requires from the government and keeps climbing this success ladder.
According to information available, a number of issues were discussed in the meeting held on 28th July, Thursday. Some of the key issues discussed were regarding the long duration taken by incubators for issuing recommendation letters, need of clarity over the definition of Aggregators under the Service tax, making compliances easy, tedious import/export procedures, IPR pendency period and the urgent need to do away with all the complicated paper work involved in all government compliances.
While these were some of the issues discussed, the 30 Indian Startup industry representatives also put forth a number of their suggestions before Sitharaman in the meeting. They suggested that the banks in India need to exempt the startups from the turnover and experience criteria to allow them to take part in the procurement process and this needs to be done as quickly as possible.
One of the issues discussed in the meeting was also about the complexities the startups have to face during interstate movement of goods. The Industry representatives suggested that there is a need for the states to start taking the declarations online and receive the taxes also online.
Since taking charge in May 2014, the Modi government has been quite vocal about its growth plans for the Indian startup industry and the potential the industry holds for the youth of the nation. The Startup India initiative by the government is testimonial of this fact. In fact, the Modi government has even started the Start-up India Hub on April 1 this year so as to provide quick response to all the queries of the startups and provide them hand-holding support.
According to , “The Startup India initiative is designed to foster innovation, create jobs and facilitate investment. Government is committed to make this initiative a scalable reality and to provide an environment for our Startups to thrive in. Since the launch of the Action Plan for the Startup India initiative considerable progress has been made. However, a lot remains to be done.”
She further added, “The Ministry of Commerce and Industry believes the way forward is to have all the stakeholders on board to take the initiative forward and act as a facilitator for Startups to flourish.”
IndianWeb2 believes that such a step from the Indian government is a positive step for the Indian startup industry. With the government on its side, the industry can gain the much needed momentum and claim the number one Startup ecosystem tag very soon.