Date: January 28, 2021
STPI-like startup reforms key to boost ecosystem: Keshav R Murugesh, Group CEO, WNS and Past Chairman, NASSCOM
For the upcoming Budget 2021, Keshav R Murugesh, Group CEO, WNS and Past Chairman, NASSCOM says:
The Software Technology Parks of India (STPI) set up by the central government in 1991, changed the fortunes of the IT Industry in India and made the country an absolute leader in the IT services space over the span of a few years. The STPI has enabled an enormous growth in software exports for the country.
I strongly believe that similar to the STPI, the Indian startup ecosystem also has a pivotal role to play in catalyzing the employment-based growth story in the country. With a view to create a conducive operating climate for startups, the one big idea I would like to propose is this:
Remove all forms of taxes (direct and indirect) on any startup company created anywhere in India till it reaches a revenue of Rs 500 crores or 12 years (whichever is earlier).
No form of taxes should also be introduced on an investor in a startup on such an investment for a period of 12 years or till the sale/transfer of such investment (whichever is earlier).
Write-off of unsuccessful startup investments should be allowed without questions to investors.
And last, but not the least, India has to figure out ways to augment domestic funding, which is currently negligible; and reduce long-term capital gains on sale of shares to 10 percent, making it on par with foreign investors.
These reforms will boost startups and employment at a scale that’s never seen before.
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