Start-ups in India are largely dependent on private investments from overseas investors. Therefore, the government should make it conducive for investors to fund ideas with great potential so that a great idea does not perish only because of the lack of funding.
Start-ups need certain tax exemptions in the initial couple of years along the lines of the Singapore tax exemption scheme. This hiatus will give them a boost and help them tide over the teething problems. In fact, we have heard that many Indian start-ups have moved base to countries like Singapore because of the favourable tax regimes.
The government has created a Rs 10,000 crore start-up fund, but we need more clarity on the mechanics of how this fund will function and how it will work towards financing ventures.
Entrepreneurial investments are highly concentrated in tier I cities. If we focus on encouraging the entrepreneurial spirit in tier II and tier III cities, as well as rural areas, one would realise that we are sitting on a potential goldmine and the opportunities are endless. Besides this, as mydala is headed by a woman CEO, I'm hoping the government will launch some initiatives to encourage more women to think of entrepreneurship as a career option.
The government's 'Make in India' campaign aims to give a boost to indigenous entrepreneurial ventures. But the challenges and issues faced by start-ups need to be addressed on a fast-track basis as they can truly contribute towards boosting the economy.
The author is Co-Founder & CFO, mydala.com