Startup pundits helping govt to craft new policy

1. Startup Pundits
Helping Govt to Craft
New Policy
Nikesh Arora, Kunal Bahl, Mohandas Pai & VC
funds providing inputs to Modi Sarkar

2. Contd…
Prime Minister Narendra Modi's Startup India initiative is taking shape, with the help of
inputs from such stars of the startup world as SoftBank President Nikesh Arora, Snapdeal
Chief Executive Officer Kunal Bahl, Oyo Rooms founder Ritesh Agarwal and former Infosys
director Mohandas Pai. A host of venture capital (VC) funds and angel investors have also
come forth with their suggestions. A detailed policy to encourage startups is likely to be
unveiled in December.
The department of industrial policy & promotion (DIPP) has held several rounds of
discussions with these stakeholders to draw up a 40-point action plan which will address
key concerns of entrepreneurs. “We are getting a feel of realities at the ground level. These
interactions have helped in (understanding) the issues the have to be addressed to build an
ecosystem for startups. These relate to different departments including corporate affairs
banking, Reserve Bank of India, economic affairs,“ a senior DIPP official told ET.
Startups have flagged delays in incorporation of companies issues relating to employee
stock options, lack of availability of initial funding, cumber some Foreign Exchange
Management Act (FEMA) documentation and access to external commercial borrowings as
areas where work on the policy front is needed.

3. Contd…
“The government has been very receptive to our suggestions that what we need is ease of
doing business for startups. Incentives can come later. Young techies don't understand all
these compliances and complex documentations which make moving money in and out of
India so difficult,“ said Pai, who is part of the deliberations.
The 40 areas of action also include liquidation and winding up of companies, a crucial con
cern as budding entrepreneurs want a clean and quick exi should their venture fail.
COMPLIANCE REQUIREMENTS
A plethora of compliance re quirements under various stat utes for venture capital funds
and angel investors is another area of concern for the startup community .
Tax breaks for private equity investors and incentives for in cubators are also part of the
wish list.
DIPP will put these points be fore the departments con cerned in the next inter-minis terial
discussion on the Startup India initiative, seeking urgent action on each of the issues
flagged.

4. Contd…
The Indian startup ecosystem is among the top five in the world.
Startups have created more than 80,000 jobs so far, according to a report by the National
Association of Software & Services Companies (Nasscom).
As many as many 11,500 startups could come up by 2020 creating 250,000 jobs, the report
says.
Ensuring that startups thrive in India is crucial if PM Modi is to deliver on his promise of
creating crore-plus jobs, made during the 2014 general elections.
“We are trying to get startups to shift from digital to manufacturing and from tier-I to tier-I
cities to create more jobs and (ensure) inclusive growth,“ the official added.
DIPP has also written to The Indus Entrepreneurs (TiE) Sili con Valley, a non-profit
organisation for fostering entrepreneurship, to seek inputs for the Startup India
programme.
So far, two rounds of meetings have been held by the Prime Minister's Office with various
government departments to decide upon incentives for startups.

5. For details and bookings contact:-
Parveen Kumar Chadha… THINK TANK
(Founder and C.E.O of Saxbee Consultants & Other-Mother
marketingandcommunicationconsultants.com)
Email :-saxbeeconsultants@gmail.com
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