The government is working to broad-base definition of startups, and has invited feedback from different sectors. Startups have been facing problems of existence of late, and last year particularly has been bad for many of them who have wound up.
“We would be happy to make it more broad-based. We are not hung up on definition.
For example, nothing happens before eight years for startups working in biotech.
Maybe we can have different periods for different kinds of startups,” Department of Industrial Policy and Promotion Secretary Ramesh Abhishek said on Monday.
Abhishek was speaking at the Indian Private Equity and Venture Capital Association.
Indian biotech startups have attracted $2.8 billion in the country in the last five years. Yet investors tend to shy away from biotechnology startups due to long gestation period and market uncertainties.
The secretary said the government has received many suggestions with regard to the biotech sector. He said the government is considering that. As of now, an entity shall be considered as a ‘startup’ only if it has been incorporated in the last five years and its turnover does not exceed Rs 25 crore in the last five financial years.
Also, a company can be called a ‘startup’ in India only if it is working towards innovation or development of new products, processes or services driven by technology or intellectual property.
DH News Service
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