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Ask an Expert - Start Ups

Sudhir Singh

Partner (Advisory), PwC India

Topic: Start Ups

There has been a lot of discussion on providing tax relief, concessions and incentives to start-ups. Based on our understanding, they require clarity and what bothers them is the tedious issue of compliance. My expectation is that the government will consider bundling these compliances, thereby reducing them into a single window

Start-ups are all about innovation. While it is desirable that they are encouraged by the government, it is equally important to check if they are actually innovative in their ideas, and that they are not getting concentrated towards similar kinds of services, sectors and resources. A system of checks is mandatory before any benefit is forwarded. Your thoughts?


One of the prime concerns in start-ups these days is the rapid burn rate that most new ideas and enterprises have, and the band of services they harnessed, becoming narrower. Shouldn't these markers be considered before forwarding tax reliefs and concessions, instead of making these a blanket provision for all and any startup?


A major concern about start-ups is the immense amount of money and investment pumped in for seemingly similar — often same — ideas, increasing competition and reducing return rates. Many see start-ups as a building bubble. What can be the measures to curb such a risk?


While we observe that capital has been infused into seemingly similar ideas and there is a reason to worry, the mere recognition of this fact offers an opportunity to avoid such a bubble. Every company has specific strengths and weaknesses, each could be very successful if it wisely chooses its target segments — geography, product, customer or something else. Start-ups will have to consciously choose not to fight; they will have to collectively zone out and create unique spaces for themselves. And a focus on operational efficiency is a must.