Government to relax norms to push startup growth
In a bid to encourage budding entrepreneurs in the country, the Central and state governments are working hands-in-hands to remove regulatory hurdles in entrepreneurship. The welcome move has been announced by DIPP Secretary Ramesh Abhishek.
Abhishek was speaking at the Global Entrepreneurship Summit (GES) 2017. He underscored the need for a differential treatment of sectors such as startups, smart technology and disruptive businesses to push growth.
Abhishek expressed the need that the governments need to be more sensitive in responding to regulations for disruptive business models and it is trying to develop the same. Many laws have been able to change the business scenario in the country in the last one and a half years.
For providing funds to the budding entrepreneurs, the government is in the process of setting up credit guarantee fund worth Rs 2,000 crore. This money will be used to lend to startups without any collateral securities. An additional amount of Rs 1,600 crore will be committed by March.
Nearly 5,000 startups have been registered with the Department of Industrial Policy and Promotion (DIPP) so far.
The disbursement is subject to the stage of the startup.
The government is also considering relaxing norms to increase startups in public procurement processes.