After clarity over angel tax, simpler regulations and more funds could be in offing for startups, according to Commerce and Railways Minister Piyush Goyal.
Goyal was addressing, through video conferencing, the participants at the ' Startup India Global Venture Capital Summit' in Goa.
In his address to the startup entrepreneurs, Piyush Goyal assured that the government is willing to commit more funds for startups beyond the Rs 10,000 crore allocated in 2016 and also make things easier for the promoters to access these funds.
"With deployment of larger funds and changes in regulatory process based on inputs given by the sector, we are looking at a further simplified regime for the startup community," he reportedly said.
This was possibly in response to the several representations sent to the government that though the funds have been earmarked for the startups, it has not been easy to avail them. Data from Small Industries Development Bank of India (SIDBI) shows that as of March 31, 2019, only Rs 2,265.70 crore has been disbursed out of the Rs 10,000 crore by SIDBI. It stood at Rs 1,750.70 crore as on December 31, 2018. Though what the simplified regime promised by the Minister has not been specified, startups will hope that they can tap this resource parked with SIDBI by the government.
In addition, Goyal also told startups and investors to share their concerns with the government, while assuring them that they would be addressed.
The one relief given by the government already is on the angel tax issue. Another issue now bothering the industry is the imposition of GST on fund managers.
The summit is being attended by over 130 investors, including from the US and Japan, apart from senior officials from the Department for Promotion of Policy and Internal Trade (DPIIT), SIDBI, SEBI and the RBI.