Piyush Goyal, India’s minister of commerce and industry, has made a strong case for the development of an even more resilient start-up environment in the nation. Goyal stressed in his remarks on Friday that the government is receptive to suggestions that could make it easier for start-ups to relocate their headquarters back to India. India’s standing as a global center for innovation and entrepreneurship is set to be strengthened by this program.
Credits: Deccan Herald
Government’s Commitment to Start-up Growth
In a press interaction, Goyal stated that the ministry is ready to work closely with stakeholders to make the transition for start-ups seamless. “We will discuss with the National Start-up Advisory Council and take feedback if any steps are required to make their journey back easier. We are open to ideas,” Goyal said.
The National Start-up Advisory Council, established in 2020, plays a pivotal role in advising the government on nurturing a strong start-up ecosystem. It aims to drive sustainable economic growth and create large-scale employment opportunities. Goyal’s remarks highlight the council’s evolving mandate to address emerging needs in the sector, such as enabling Indian-origin start-ups to re-domicile.
A Growing Trend of Start-ups Coming Back Home
Over the years, several Indian start-ups had chosen to register abroad, drawn by the allure of easier access to international funding, higher valuations, and sector-specific regulatory flexibility. However, an increasing number of these ventures are exploring ways to return to their home ground.
“It is a welcome sign and also very, very satisfying that more and more start-ups come back home, register in India, list in India, and grow in India. India will be a preferred destination in the future,” Goyal said, underscoring the nation’s evolving business-friendly environment.
The trend is being driven by factors such as:
- A strengthening domestic investment ecosystem.
- Policy reforms aimed at enhancing ease of doing business.
- Growing opportunities for listing on Indian stock exchanges, which have been actively courting tech-driven companies.
DPIIT’s Proactive Engagement
Significant efforts have also been made to strengthen cooperation between corporations and start-ups by the Department for Promotion of Industry and Internal Trade (DPIIT), which is in charge of implementing start-up policies. Goyal claims that DPIIT has signed 50 Memorandums of Understanding (MoUs) with top business organizations. These partnerships allow start-ups to work on real-world problems and find development possibilities by exchanging particular problem statements from enterprises.
By bridging the gap between innovation and industry requirements, this partnership-driven approach provides start-ups with a more defined roadmap for scaling solutions and broadening their market reach.
The Future of Start-ups in India
India has emerged as a global powerhouse in the start-up domain, boasting over 100 unicorns and a thriving ecosystem that supports innovation across sectors. Goyal’s renewed focus on making India the preferred domicile for start-ups is expected to further boost this momentum.
To support this ambition, the government has already implemented measures such as:
Tax Incentives: Initiatives like tax holidays for start-ups under the Start-up India scheme.
Regulatory Simplifications: Reducing compliance burdens for start-ups and offering single-window clearances.
Investor-Friendly Policies: Encouraging domestic venture capital and private equity investments.
Why Re-domiciling Matters
Re-domiciling Indian-origin start-ups holds immense potential for the country. It ensures:
Increased Local Investments: Start-ups returning to India can attract local investments, strengthening the domestic financial ecosystem.
Employment Generation: A surge in local start-up activity leads to more job creation, directly benefiting the economy.
Technological Advancements: By working in closer proximity to the Indian market, start-ups can tailor solutions to address regional challenges, driving innovation.
Boost to Capital Markets: As more start-ups list on Indian stock exchanges, it enhances market depth and offers more investment options to retail and institutional investors.
Credits: Money Control
A Call for Collaborative Efforts
Minister Goyal’s call for ideas reflects the government’s willingness to engage with start-ups, investors, and industry leaders to shape policies that cater to their needs. This collaborative approach has been a hallmark of India’s start-up success story and is likely to accelerate the return of ventures eager to capitalize on the country’s growth trajectory.
