DPIIT holds meeting with startups on ways to increase investment

The Department for Promotion of Industry and Internal Trade (DPIIT) Monday held consultations with startups and investors to discuss ways to increase flow of funds to budding businesses, an official said.

"There is a need to incentivise investments in startups and the government is committed to remove all impediments," the official said.

The meeting was chaired by DPIIT Secretary Ramesh Abhishek.

Earlier this month, the secretary had said that there is a need to augment more flow of funds into startups and if there are any regulations or laws that need to be changed to augment that flow, "we would like to talk that".

As many countries provide tax and other incentives to angel investments into startups, the government here is also looking at those.

On February 19, the government relaxed the definition of startups, and allowed them to avail full angel tax concession on investments worth up to Rs 25 crore.

Besides, investments by listed companies with a net worth of Rs 100 crore or turnover of Rs 250 crore into an eligible startup also exempted from the Section 56(2)(viib), beyond the Rs 25 crore limit.