India is working to lower regulatory hurdles for startups as the government looks to promote investment and create jobs.
These include exempting startups from 22 federal rules and regulations, such as labor and company laws, until their turnover reaches a certain level, the Wall Street Journal reports, citing Amitabh Kant, the top bureaucrat at the Department of Industrial Policy and Promotion.
Kant did not say when the new policy will be unveiled but an official at the Trade Ministry who asked not to be named said it could be as early as next month.
“We wish to emerge as the world’s top destination for startups, for which we will provide a hassle-free business environment,” Kant said.
Under current rules, startups must register with Indian authorities and navigate a maze of approvals before starting to do business.
A ministerial panel is looking into exempting such businesses from certain taxes for a specified period, creating a fund to support them and liberalizing the system for raising global capital, Kant said.
“We want to create an ecosystem wherein the startups don’t have to go through the cumbersome regulatory processes, but rather they keep away from the government and grow,” he said.
Kant’s department is spearheading the policy after Prime Minister Narendra Modi unveiled the “Startup India; Stand up India” campaign in his Independence Day speech in August.
Modi visited Silicon Valley last month and met with investors there as well as founders of Indian and American startups.
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