Ashneer Grover Shares His Top 3 Asks from Centre to Boost Startups
Recent discussions around India’s startup ecosystem have spotlighted certain challenges that need addressing for enhanced growth. Commerce Minister Piyush Goyal’s remarks questioning whether the country was too engrossed in food delivery and gig jobs prompted responses from various quarters, including notable entrepreneur Ashneer Grover.
In a series of posts on social media platform X, Grover commented on the hurdles that entrepreneurs face, which he believes the government should address to facilitate the progress of startups.
On a recent Saturday, Grover, known for founding Third Unicorn and as a former judge on Shark Tank India, outlined three primary requests from the government aimed at nurturing the startup environment.
1. Streamlined Approvals: Grover emphasized the need for a single window for all licenses and filings. This includes entities like SEBI, RBI, FEMA, IT, GST, and local authorities. He suggested a maximum 15-day ETA for these approvals, with automatic approval being the norm if this timeframe is surpassed.
2. Taxation on ESOPs: Another critical issue Grover raised was the taxation on ESOPs (Employee Stock Ownership Plans). He proposed that capital gains on ESOPs should be applicable only at the time of actual cash realization. The tenure for these gains should be counted from when the stocks vest, not when they are exercised.
3. Flexibility for Domestic Investors: Grover’s third request focused on enabling domestic investors to write off their investments in startups at their discretion. He proposed allowing this without the need to dispose of shares. Any subsequent capital gain on the same investment, after being written off, would be fully taxed, assuming an investment cost of zero.
Grover expressed gratitude to Minister Goyal for initiating what he described as a “healthy debate” with startup founders.
He further pointed out, “The only people in India who need a ‘reality check’ are its politicians. Everyone else is living in the absolute reality of India.” He argued that China also began with food delivery before progressing to deep tech. Grover encouraged Indian politicians to aim for consistent economic growth instead of critiquing current job creators.
Grover’s remarks were in response to the minister’s observations, which he felt underscored the need to look beyond criticism and see this as an opportunity to create a conducive environment for innovation and growth.
The conversation around India’s startup landscape continues to evolve, with stakeholders highlighting various paths to foster innovation. As the government and entrepreneurs collaborate, the focus remains on transforming the potential of India’s startups into a thriving reality that not only tackles present challenges but also leverages opportunities that lie ahead.
