The measures proposed by the Finance Minister in the Union Budget 2019 today, regarding the Indian start-up ecosystem are extremely encouraging. Regarding angel tax, start-ups and investors who file requisite declarations will no longer be subjected to any kind of scrutiny with respect to the valuation of share premium.
The introduction of the e-verification mechanism for the same is also a welcome step.
With this, FM Nirmala Sitharaman has addressed the regulatory elements that currently harass both start-ups and angel investors. A robust implementation of the proposed measures should eliminate virtually all the issues plaguing the angel investment landscape.
The alleviation of regulatory friction has opened the way for the smooth progress of the country's start-up ecosystem. This will allow us to not only meet but exceed the target of 50,000 stated by the President, create millions of jobs, contribute to economic growth and find innovative solutions to the country's many challenges in affordable health care, education, agricultural productivity, clean energy, water and sanitation.
(The writer is Chairman and Co-Founder, Indian Angel Network. The views expressed are personal)