In a bid to enhance the ease of access to funding and mentorship for startups, the department for promotion of industry and internal trade (DPIIT) has urged government regulatory bodies to set up startup cells. DPIIT has written to the Reserve Bank of India, central board of direct taxes, and the Securities and Exchange Board of India asking them to set up such cells within their institutions
According to a CNBC TV18 report, the objective of the startup cells would be to engage with new ventures and resolve regulatory and compliance issues in a transparent manner. DPIIT secretary Guruprasad Mohapatra said that the department has advised regulators to set up teams dedicated to constant engagement with startups. “There are a lot of regulatory issues vis-a-vis these regulatory bodies. They have done a lot of good work for startups. But as part of an ongoing effort, we have asked them to set up dedicated teams that look into startups’ issues on a constant engagement basis,” Mohapatra said.
He added that the idea was discussed at the Global Venture Capital Summit held in Goa in December 2019, where the startup advisory council plan also emerged. The ministry of corporate affairs had officially announced setting up of National Startup Advisory Council as a platform for the Indian startup ecosystem to put forward its view to the relevant stakeholders and have a say in the policy-making. Commerce minister Piyush Goyal would be heading this council
“National Startup Advisory Council to advise the government on measures needed to build a strong ecosystem for nurturing innovation and startups in the country to drive sustainable economic growth and generate large scale employment opportunities,” the ministry’s official statement read.
The ministry has clarified that the advisory council will consist of founders of successful startups, entrepreneurs, representatives from incubators and investors, along with representatives from government departments and regulators that deal with startups.
The National Startup Advisory Council is expected to brainstorm on ways to boost the Indian startup ecosystem and encourage innovation among the Indian citizens, especially students. The ministry’s press release clarified that the council will have to focus on innovation across all the economic sectors, including semi-urban and rural areas.
Prior to this, the CBDT formalised the creation of a five-member special cell to help startups with income tax-related issues. “The cell will work towards redressal of grievances and mitigate tax-related issues in case of startup entities with respect to the administration of Income-tax Act, 1961,” the order said.