34445
Modi Offers Fund, Tax Breaks for Startups
World Economy

Modi Offers Fund, Tax Breaks for Startups

India said it will set up a 100-billion-rupee ($1.5 billion) fund to encourage startup businesses and pledged to ease regulations for entrepreneurs, as Prime Minister Narendra Modi strives to create the jobs needed in a developing nation of 1.3 billion people.
Startups will get tax breaks such as income-tax exemptions for the first three years, quicker patent applications, a credit guarantee program and easier routes to wind up if they fail, Modi said at a government conference for entrepreneurs in New Delhi. The fund will be established over four years, Bloomberg reported.
“The government should not interfere in startups,” Modi said on Saturday to an audience that included billionaire Masayoshi Son, the founder of Japan’s SoftBank Group Corp., and Uber Technologies Inc. Chief Executive Officer Travis Kalanick. “India’s youth should be a job creator, not a seeker.”
Asia’s No. 3 economy is in the midst of an Internet startup boom that’s lured billions of dollars and raised questions about whether valuations are becoming stretched. Much of the money is coming from foreign investors such as SoftBank. A lack of tax breaks has curbed the involvement of local investors.
 “About 70-80% of the funding is coming from overseas,” said Harish Visweswara, a partner at consultant Grant Thornton India LLP. The government needs to curb red tape and get rid of the numerous permits and licenses required to run a simple business, he said.
The administration’s objective is to reduce obstacles from complex rules, Finance Minister Arun Jaitley said at the conference.
“Our effort over the last few years has been to restrict the role of the state essentially as a facilitator,” Jaitley said.

 

Short URL : http://goo.gl/8DBtI0
  1. http://goo.gl/bG1qL3
  • http://goo.gl/tfhQPX
  • http://goo.gl/e1bjea
  • http://goo.gl/v2q7oB
  • http://goo.gl/PMfdDV

You can also read ...

Dealers and investors are still vulnerable to the kind of rapid, wholesale dumping of assets that sank Lehman.
These days, it’s virtually impossible to become a bona fide...
Japan Leads Bitcoin Market
Japan has once again become the largest Bitcoin exchange...
BIS says the global debt may be understated by $13 trillion.
Global debt may be under-reported by around $13 trillion...
Critics Comment on Reforming US Business Taxes
Some critics argue that reforming business taxes in the United...
Algeria Plans to Plug Budget Deficit
Algeria’s prime minister laid out a sweeping plan to plug the...
ECB Forecasts Slump in Eurozone Inflation
Inflation in the eurozone will slump in early 2018, the...
Economic growth has halved from last year to about  0.3% in H1 of this year.
The average UK asking price for a home coming onto the market...
Strong Growth to Ease France’s Budget Balancing Act
France’s economic recovery is strong enough for the government...

Trending

Googleplus