Prabhu sets up committee to push economic activities in India

Commerce Minister Suresh Prabhu said Friday a committee has been set up to identify unnecessary and unproductive regulations that can be scrapped to push economic activities.

The minister also said that although India has made significant progress in ease of doing business it still has a long way to go.

There is a need for scrapping unnecessary and unproductive regulations which are coming in the way of India's capacity to become a USD 10 trillion economies, he said while addressing the annual session of PHD Chambers here.

"A standing committee, chaired by the secretary in the department of industrial policy and promotion (DIPP), has been set up to identify regulations that may be scrapped," he said.

The minister urged the industry chambers to identify such regulations at the earliest.

Talking about promoting startups, he said venture capitals (VCs) should invest more in startups as they give maximum returns on investments.

He said the government is taking several steps to remove bottlenecks for the growth of budding entrepreneurs in the country.

"Startups can give maximum returns on investments because the growth will be higher because they start from a low base. Therefore, it has huge potential to grow and therefore VCs will be benefited," he added.

The minister said they would organize a meeting of regulators, startups, and VCs in Goa in November to discuss issues of entrepreneurs.

"We are trying to find out all the impediments to promote startups," he added.

On January 2016, Prime Minister Narendra Modi unveiled a slew of incentives to boost start-up businesses, offering them a tax holiday, inspector raj-free regime and capital gains tax exemption as part of the start-up action plan.