Intending to provide a major boost to the India's start-up world, the government on Saturday said the country will finally come out of the conventional license raj system and act as a key facilitator for the entrepreneurial spirit in the country.
Prime Minister Narendra Modi. PTI
Earlier today, Finance Minister Arun Jaitley at the launch of the start-up event said although India ended the licence raj in 1991 with the economic liberalisation, the government continued to exercise control over many key areas, which throttled the startups and entrepreneur spirit in the country.
For the start-ups looking to raise funds at the initial stage, Jaitley said the government will in the next Budget scrap the tax on seed funding by angel investors, which has been identified as a major impediment for entrepreneurs to get domestic funds.
He also said the government and the Reserve Bank of India will over the next few months add to banks' ability to lend.