ANICommerce and industry minister Piyush Goyal on Thursday said that the government is trying to reduce the compliance and regulatory burden so that it becomes easier to operate, grow and exit, from businesses amid green shoots of investment coming back to India.
“There’s been huge growth in manufacturing investment of late. I can see the green shoots of investment coming back to India in a big way particularly private investment,” Goyal said at the Global Unicorn Summit organised by the Confederation of Indian Industry.
“(We are) trying on our part to reduce the compliance and regulatory burden. Hoping it becomes easier to begin to operate, grow and if necessary, even exit, from businesses,” he said.
The minister highlighted various challenges for India in the digital space.
“One pressing issue as we explore other markets and grow within India in digital space, is going to be cyber security and data privacy,” Goyal said.
India’s consumer digital economy is expected to grow 8x from a $100 billion today to $800 billion by 2030.
“How do we ensure that the enormous data collected by all these Ubers, Swiggys, Zomato, Ola, Paytm and all the others involved in this digital ecosystem is protected and safeguarded and adhere to privacy concerns, is going to be a matter of great interest,” Goyal said, hoping the issue found serious consideration.
He said 95 unicorns have emerged in India in the last 4-5 years, but the speed is accelerating and that in the next eight years, 10X growth is something “very feasible”.
“1,000 unicorns that you are aspiring to nurture by 2030 is very much in the realm of possibility, very much doable,” Goyal said, adding that the National Startup Advisory Council is now taking shape.
Citing the example of electric vehicles which got a boost when petrol prices rose, the minister said that with petroleum prices hitting the roof, Indian startups can come up with innovative solutions to reduce consumption of petroleum products and improving efficiency.
He also said the government would like to promote space technology.
IP protection
Goyal urged venture capital firms to handhold startups and innovators and suggested the latter to look at remoter parts of India
“ (I) urge to incorporate in India and list in India. Just for a few dollars more, please don’t leave the nation’s borders to tax havens and other countries,” Goyal said.
He asked VCs to protect the startups’ IP, help with capital infusion to ensure that IP remains within India.
“License it to anywhere in the world but let India be the principal beneficiary,” Goyal said.
He also suggested help through domestic investment into the startups at various stages and the IPO level and insisted that founders need to get their real share in the growth story and must have something left for them as the company grows- whether a clawback mechanism or preferred equity.
“I hope Investors keep that in mind because very often in our in grown domestic talent is not getting its due, what they deserve,” Goyal said, adding that there are mechanisms in Silicon Valley to protect the interests of generator of the idea.
Ethics
Goyal said ethics and corporate governance standards need to be strengthened in the startup ecosystem.
“Malpractices like revenues, data fraud, tax evasion need to be clipped at an early stage otherwise they will earn a bad name for our startup world and have by and large been insulated from these problems so far,” he said.
Goyal hoped these do not become the norm in the years to come as they will kill the entrepreneurial spirit and have damaging effects.
“Don’t go for shortcuts. They come with price tags,” he said.
The minister said that standards or self regulation can be set based on which auditors can transparently audit the startups.
“There’s been huge growth in manufacturing investment of late. I can see the green shoots of investment coming back to India in a big way particularly private investment,” Goyal said at the Global Unicorn Summit organised by the Confederation of Indian Industry.
While government investment has been ongoing, he said the increasing number of imports other than petroleum, is a “sure sign that domestic capex cycle will rekindle”.
“(We are) trying on our part to reduce the compliance and regulatory burden. Hoping it becomes easier to begin to operate, grow and if necessary, even exit, from businesses,” he said.
The minister highlighted various challenges for India in the digital space.
“One pressing issue as we explore other markets and grow within India in digital space, is going to be cyber security and data privacy,” Goyal said.
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India’s consumer digital economy is expected to grow 8x from a $100 billion today to $800 billion by 2030.
“How do we ensure that the enormous data collected by all these Ubers, Swiggys, Zomato, Ola, Paytm and all the others involved in this digital ecosystem is protected and safeguarded and adhere to privacy concerns, is going to be a matter of great interest,” Goyal said, hoping the issue found serious consideration.
He said 95 unicorns have emerged in India in the last 4-5 years, but the speed is accelerating and that in the next eight years, 10X growth is something “very feasible”.
“1,000 unicorns that you are aspiring to nurture by 2030 is very much in the realm of possibility, very much doable,” Goyal said, adding that the National Startup Advisory Council is now taking shape.
Citing the example of electric vehicles which got a boost when petrol prices rose, the minister said that with petroleum prices hitting the roof, Indian startups can come up with innovative solutions to reduce consumption of petroleum products and improving efficiency.
He also said the government would like to promote space technology.
IP protection
Goyal urged venture capital firms to handhold startups and innovators and suggested the latter to look at remoter parts of India
“ (I) urge to incorporate in India and list in India. Just for a few dollars more, please don’t leave the nation’s borders to tax havens and other countries,” Goyal said.
He asked VCs to protect the startups’ IP, help with capital infusion to ensure that IP remains within India.
“License it to anywhere in the world but let India be the principal beneficiary,” Goyal said.
He also suggested help through domestic investment into the startups at various stages and the IPO level and insisted that founders need to get their real share in the growth story and must have something left for them as the company grows- whether a clawback mechanism or preferred equity.
“I hope Investors keep that in mind because very often in our in grown domestic talent is not getting its due, what they deserve,” Goyal said, adding that there are mechanisms in Silicon Valley to protect the interests of generator of the idea.
Ethics
Goyal said ethics and corporate governance standards need to be strengthened in the startup ecosystem.
“Malpractices like revenues, data fraud, tax evasion need to be clipped at an early stage otherwise they will earn a bad name for our startup world and have by and large been insulated from these problems so far,” he said.
Goyal hoped these do not become the norm in the years to come as they will kill the entrepreneurial spirit and have damaging effects.
“Don’t go for shortcuts. They come with price tags,” he said.
The minister said that standards or self regulation can be set based on which auditors can transparently audit the startups.
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