TiE’s farmer global chair slams Indian Government officials for Choking Indian Startup growth.
19th, December 2018 - Startup community
India’s one of the prominent angel investor has slammed Indian government officials for obstructing Indian Startup ecosystem’s growth. He said there has be to review of the current approach on Startup policy in India to become the next super power.
Venkatesh Shukla, former TiE’s global chair, former Indian Revenue Services (IRS) officer and general partner in the US based Startup investment firm Monta Vista Capital, was speaking at an event organised in Delhi on Monday by the Center for Policy Research (CPR).
While address the gathering he said Indian Startup policy are designed by Civil service people is a worst scenario for startups as they have very limited exposure to Startup, operation, investments or running a business.
He added “They have never created a job in their lives”
“Take a nonsensical policy they created... that startups of less than three years don’t need to pay income tax” he said, adding “Startups at that stage anyway don’t make money to pay income tax. Policies like this only allow bad actors with ill intentions to position themselves as startups”.
He mentioned another policy that 30.9% tax levied on a portion o the investment an angel investor makes.
Angel investors are those invest in a startups much before there is any proof that it will make any money. Which means they may or may not get any returns on the investments? In fact an an estimate 90% of startups fail within a year.
“The taxing structure and the reasoning behind this policy was so convoluted, angel investors like us had to take it right up to the PM’s office to find some sort of solution to it”. Shukla said.
According to him Indian Startup policies are designed and implemented by the people who does not have any knowledge about startup and how it work. The policy needs a total revamp and it has to include all the aspect of startup life cycle. This will definitely help Indian to emerge as a next global startup hub in the world.
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