How regulations are playing spoilsport for Indian startups

Date posted: Monday 1 October 2018

Dozens of young startups, are not just worried about managing warp-speed growth. Instead, they’re spending inordinate amounts of time keeping pace with a rapidly changing regulatory landscape. All of a sudden, companies and small startups that have been trying to carve our small niches are finding themselves caught up in a confounding maze of proposed laws and regulations. While large sectors such as ecommerce are worried about provisions in a draft law, other entrepreneurs ranging from cryptocurrency to online pharma are concerned that a wave of legislation — some implemented and others at various stages of consideration — will trip up India’s ascendant startup scene. Entrepreneurs acknowledge that the government has a tough task at hand. While on the one hand the Narendra Modi-led government is committed to promoting entrepreneurship, it also has to worry about the effect these ventures are causing the brick-and-mortar economy. It is certainly important for governments and regulators to walk the fine line between regulating effectively and being regressive in policy. To safeguard user data, for instance, startups must be told to ensure data is protected, rather than insist on following an iron-clad list of rules around local hosting and audits of data.

(Economic Times)

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