Problem of a few startups can’t be taken as problem of the entire ecosystem: Nirmala Sitharaman

Finance Minister Nirmala Sitharaman said that the problem of a few startups can’t be taken as the problem of the entire ecosystem and that many of the startups are doing fine. The minister said that no sector should have apprehension that they can’t do business in India.

The minister was speaking at the Express Adda event, hosted by The Indian Express. Sitharaman was answering a question on the troubles the poster-boys of the Indian startup ecosystem have been facing, including Byju’s and Paytm. 

“One or two or three or four startups’ problems cannot be seen as entire startup world’s problems. Many of them are doing alright. They might want to have a greater level of comfort from the regulators, which is fine and we will provide that. I don't want any sector to have any apprehension that they "can't do business in India". The government is very much with the startups. They will be given all assistance because they intend to carry on with the innovations, and the compliance will be simplified and will have to be made user-friendly,”  she said at the event.

Sitharaman said that some startup representatives approached her a few days ago, “particularly fintech ones”. She said that she had a fantastic conversation with the representatives but clarified that the conversation did not come from Paytm’s issue. She said that the conversation more or less revolved around the assistance they need from regulators.

The regulators understood their concerns and “really connected” with the representatives, she said.

Sitharaman said she has asked the RBI to have a conversation with startups on a dedicated day every month, so that they can answer the questions and put them out as FAQs.

The minister also said that Prime Minister Narendra Modi’s administration has a “whole of government” approach, meaning that the government works as an organisation that thinks together and does not work in silos. “So, if a policy is brought, it actually gets grounded because all concerned are working towards the same goal,” she said.