Government will be facilitator for startups, not regulator: Piyush Goyal

The government will always act as a facilitator to strengthen the startup ecosystem and not act as a regulator, Commerce and Industry Minister Piyush Goyal said on Tuesday.

He said the sector should self-regulate its affairs, such as financing, regulatory reporting and accounting.

Addressing the Startup20 summit here, the minister said, the message that should go out from here is the joint commitment of all the 22 nations, who have participated, that the governments will not be looking at impeding the progress of the work that startups are doing.

The best way is to be out of the startup ecosystem, he said, adding the government is not expected to start regulating or dictating or micro-managing the ecosystem.

"Our role will always be that of a facilitator and I do not see the government becoming an administrator or a regulator of this sector," he said.

"If at all there are issues...Problems, we would like to look at finding solutions to them through possibly self-regulation, he said, adding "Let them (startups) create their ecosystem that will ensure orderly growth, orderly way of accounting, way of financing, way of reporting".

He added that the job of the government is to give an initial push or early-stage finance to budding entrepreneurs and help with incubators and tinkering laboratories.

The two-day Startup20 Shikhar Summit, organized by the Startup20 Engagement Group under the India G20 Presidency, concluded here on Tuesday.

The minister also said that India provides a unique opportunity to the world of startups.

India has the advantage of skilled talent, affordability, growing startup culture, and aspirational population, Goyal said.

He invited the startups of the world to come and explore opportunities in India.

"I would personally like to commit myself not to interfere in the startup world," he said.

Goyal also said that the kind of policy recommendations that have come from the deliberations here will lay the basic foundation for this startup journey moving up from "startup India to startup world".

The Startup20 communique, he said, "can truly be the new dawn of the global startup ecosystem".

The communique agreed by the Startup 20 group has urged the G20 leaders to raise the joint annual investment of G20 nations in the global startup ecosystem to USD 1 trillion by 2030.

It has asked the leaders to facilitate the flow of public and private capital into the startup ecosystem by promoting various mechanisms such as Fund-of-Funds, Corporate Venture Funds, and University Endowment Funds.

Startup20 India Chair and Mission Director Atal Innovation Mission, Niti Aayog, Chintan Vaishnav said that Saudi Arabia, represented by Prince Fahad Bin Mansoor, emerged as the first country to endorse and support the Startup20's call to allocate an ambitious sum of USD 1 trillion per annum into the startup ecosystem by 2030.

It has also called for considering the communique recommendations, policy directives, and actions in five areas for harmonizing the global startup ecosystem while retaining the autonomy of the national ecosystems.

The main recommendations of this group include the creation and adoption of a global definition framework for startups across G20 nations; setting up effective channels between the startup ecosystems across G20 nations; and building market access mechanisms for startups from G20 nations.

This two-day summit served as a platform for fostering innovations, collaborations, knowledge sharing, and strategic alliances within the global startup ecosystem.

During the closing ceremony, Chintan Vaishnav, Chair of Startup20, officially handed over the torch to Brazil, as the country has G20 presidency for the next year and has committed to continue the Startup20 initiative in 2024.

He said that by pledging support for the USD 1 trillion funding milestone, Saudi Arabia sets a precedent for other nations to follow, demonstrating their commitment to driving a disruptive innovation ecosystem and propelling economic growth.

The key action points in Communique include the creation and adoption of a defined framework for startups, creating a networked institution to support startups and ecosystem stakeholders across G20, increasing and diversifying access to capital, easing market regulations for startups as well as scaling up of startups of global interest.

These measures aim to foster a conducive environment that empowers startups to innovate, grow, and address global challenges effectively.

The policy communique sets the direction for G20 countries to scout promising startups intensively, fund them collaboratively, mentor them contextually and scale them globally.