We must strive to bring startups’ ownership back to country: Eco Survey IANS Updated: January 31st, 2023, 17:55 IST in Business , Sci-Tech 0 Pic- Freepik Share on Facebook Share on Twitter Share on WhatsApp Share on Linkedin New Delhi: As external support from the government has made it relatively easier than before for entrepreneurship to thrive, there are several inherent challenges faced by startups, like ever-elusive funding, revenue generation struggles, lack of easy access to supportive infrastructure, or wading through the regulatory environment and tax structures, the Economic Survey for 2022-23 said Tuesday. As per the Survey, tabled in Parliament by Finance Minister Nirmala Sitharaman, it has also been observed that many Indian companies have been getting headquartered overseas, especially in destinations with favourable legal environments and taxation policies. “The technical jargon for this may be identified as ‘Flipping’, which is the process of transferring the entire ownership of an Indian company to an overseas entity, accompanied by a transfer of all IP and all data hitherto owned by the Indian company,” the document read. The Economic Survey noted that the flipping phenomenon “reflects startups venturing out for short-term gains in the dynamic, uncertain geopolitical world”. “However, the flip can be reversed with the collective action by the government-related regulatory bodies and other stakeholders. With solution-oriented strategies, startups will continue to be the messengers of India’s entrepreneurial dynamism,” it added. To accelerate the process of “reverse dipping”, certain measures are possible like simplifying the process for grant of “Inter-Ministerial Board (IMB) certification” for startups, further simplification of taxation of Employee Stock Options (ESOPs), simplifying multiple layers of tax and uncertainty due to tax litigation and the procedures for capital flows. The government and other stakeholders should also facilitate improved collaboration and partnerships with established private entities to develop best practices and state-of-the-art startup mentorship platforms, said the Survey. In the current scenario, the Economic Survey for 2022-23 said that more than 9 lakh direct jobs have been created by the Department for Promotion of Industry and Internal Trade (DPIIT)-recognised startups, with a notable 64 per cent increase in 2022. As per the Survey, the number of recognised startups in the country has increased from 452 in 2016 to 84,012 in 2022. “About 48 per cent of our startups are from Tier II and III cities, a testimony of our grassroots’ tremendous potential,” read the Eco survey. “India ranks among the largest startup ecosystems in the world. various targeted initiatives of the government have given a major boost to start-ups,” the document said. IANS Tags: economic survey Economy fiscal GDP India Nirmala Sitharaman startups union Budget Share Tweet Send Share Suggest A Correction Enter your email to get our daily news in your inbox. Leave this field empty if you're human: Related Posts Electronics good exports growing at 55% annually, PLI to help local firms, says Economic Survey January 31, 2023 Strong growth expected in service sector in 2023-24: Economic Survey January 31, 2023 India spearheading one of world’s most ambitious clean energy transitions: Eco Survey January 31, 2023 Indian start-ups are looking at Reverse Flipping January 31, 2023 Eco Survey suggests govt to follow fiscal prudence as low interest rates benefit all January 31, 2023 Economic Survey highlights thrust on rural development January 31, 2023 Leave a Reply Cancel reply Your email address will not be published. Required fields are marked * Comment * Name * Email * Website Save my name, email, and website in this browser for the next time I comment. Δ.