The global trade body for IT and outsourcing has told the Indian government to remove regulatory hurdles facing startups in the country.
Nasscom, a global trade body for the IT and business process outsourcing sectors, has called on the Indian government to remove regulatory hurdles facing startups rather than trying to invest in the companies, the Economic Times has reported.
According to Nasscom, startups have access to plenty of venture capital in the country and have no need for public investments, but entrepreneurs are being held back by the need for multiple clearances and permissions before they are allowed to launch operations.
R Chandrasekhar, president of Nasscom, highlighted the fact that entrepreneurs require between 50 and 60 different clearances from various government departments before they are allowed to set up a small company employing three to four staff.
Nasscom has voice its concerns, and provided ideas, to both the country’s prime minister and the government policy think tank Niti Aayog.
Chandrasekhar said: “It is really possible to have a much simpler system which does not make many of these regulations applicable to [technology startups]. I am not saying there should be no regulations but certainly many of them may not be applicable to them.”