Commerce and industry minister Suresh Prabhu on Thursday said that a new committee will be set-up for easing the investments in Indian businesses as “India is going to be the next largest growth engine of the world.”
“I have directed the (commerce) secretary to set up a committee for new regulations to take collective action immediately while I will be dealing with the angel tax issue on real time basis,” Suresh Prabhu said at the IVCA Conclave.
Prabhu also said that he has already directed the commerce secretary to prepare a new ‘matrix’ for ‘please of doing business’.
“We talk about the ease of doing business but I think we should think of please of doing business so that you (entrepreneurs) enjoy doing business rather than just removing hurdles in the way. This is what I want to develop over a period of time,” the minister said.
Prabhu also stressed on the significance of attracting more investments and that it must precede any economic activity to happen significantly on the ground.
“If more investments happen, more economic activity will happen. More economic activity would mean more capital getting created which would lead to more investments happening,” Prabhu said.
The minister said that he will personally reach out to large equity players globally to encourage them to look at India more closely.
Prabhu’s comments comes a day after the Department for Promotion of Industry and Internal Trade (DPIIT) on Wednesday raised the angel tax exemption limit from Rs 10 crore to Rs 25 crore for investment made into startups by unlisted firms or individuals. Also, investments by listed firms having a net worth above Rs 100 crore or annual turnover of Rs 250 crore will be exempted from any such limit, the Financial Express reported.
In a separate development on Thursday, DPIIT Secretary Ramesh Abhishek said that the department is deliberating on the issue of accredited investors with the Central Board of Direct Taxes even as angel investors have been seeking tax exemption for the investments made in startups.
“We have held consultations with stakeholders on who can be the accredited investors. What can be the criteria for accredited investors (to invest) and who will accredit them, all this is under discussion right now. We would like to do this at the earliest,” DPIIT Secretary Ramesh Abhishek said at the conclave.