Radical Transformation through ICT Mr. R. Chandrasekhar, President, NASSCOM

support from the government. Moreover, NASSCOM along with the entire industry is working towards a common goal of boosting the start-up ecosystem in India. The Indian government has been doing its bit through the Start-up India initiative and a multitude of policies on funding & taxation to help accelerate the growth of India’s startup ecosystem. With many states now coming up with their own startup policies and the countrywide momentum created, we believe we’ll be at par with the Israeli startup ecosystem soon.

Further, the government has launched India Aspiration Fund (IAF), to boost startup ecosystem, launched IAF with initial corpus of INR 2,000 Cr to finance and promote MSME4 sector; Created a MUDRA Bank for Small Business Loans, with an initial corpus of INR 20,000 Cr & credit guarantee corpus of INR 3,000 Cr to provide loan facilities to small businesses. Additionally, with the SETU Program, the government has established a techno-financial incubation program to support startups and set aside INR 1,000 Cr in the Union Budget.

What policy initiative do you envision to catalyze entrepreneurship and role of Technology for the development of the nation?

When it comes to policy initiatives, the government has been proactive in its support for start-ups and entrepreneurship, however, the tax related benefits announced in the ‘Start-up India’ action plan have not been easily accessible due to requirement of companies to be certified as innovative and their individual ratification by the Government. NASSCOM has previously suggested that as startups are already being evaluated for potential, capability of their business idea by independent investors firms, angels, VCs and incubators for investment and incubation support respectively; such entities should not have the additional need for ratification.

While the government has further extended support by allowing for several recommendations from NASSCOM on strengthening the start-up ecosystem, some equally critical recommendations related to harnessing domestic investors and removal of angel tax had not been accepted post the budget announcement this year. To catalyse entrepreneurship, NASSCOM recommends the removal of angel tax suggesting to share premium in excess of fair market value treated as income. We also wish to encourage start-ups through a salient recommendation of proprietary domestic capital to set up an LLP as an investment vehicle for the object of investment.

Addressing the second point of the question, with ‘Digital India’ focusing on expanding digital infrastructure and improving the delivery of government services; the technological transformation is empowering citizens through improved access. Industries such as banking, insurance, healthcare, retail and manufacturing are directly being impacted by it which brings an opportunity for business leaders to debate on this change of business landscape. As Indian technology firms rapidly adapt to an increasingly digital world, the portfolio of services being offered by them is expanding. Technology will go a long way in ensuring a sustainable model for the government to ensure growth and impart services to all citizens.