Defence Minister Manohar Parrikar called for exempting startup companies from filing returns for the first five years of operations.

“Small entrepreneurs face the biggest harassment by government officials…All startup firms should be exempted from filing returns in the first five years,” Mr. Parrikar said while interacting at the Wadhwani Foundation's Job Creation Summit here.

Mr. Parrikar said that while he was an entrepreneur earlier he himself faced prosecution five-six times by the government officials, especially the EPFO and the ESIC department.

“When I started a small firm in Goa, I used to spend more time initially in visiting the government departments than on designing,” the minister added.

Recently, the government directed retirement fund body EPFO and health insurance provider ESIC to exempt startups from inspection and filing returns for three years.

He also termed the “legal system” as “complicated” saying many defaulting firms get scot free and as a result, govenrment puts in tight regulations which impacts the “honest” companies.

He said the government is taking steps to bring in “deregulation at every level.”

Romesh Wadhwani, Chairman of Wadhwani Foundation, also part of the panel discussion, said he has proposed creating a post of a job adviser in the Prime Minister's Office.

“The job adviser will be responsible for creating overall master plan for job growth, frame special initiatives to add up to the plan and coordinate between the Cabinet ministries and state governments,” Mr. Wadhwani said.

Mr. Parrikar said creating wealth has become a psychological barrier in the country leading to issues related to job creation. “Creating wealth doesn’t mean looting the exchequer. If with his ability, someone is able to generate wealth, it has a multiplier factor of creating hundreds of jobs. We see him as a sinner. That mindset should change and if that happens, a lot of things will change,” Mr. Parrikar said.

He also indicated that his ministry is actively considering investment by venture capital funds as part of the offset conditions in defence procurements. Offsets conditions, which intend to develop domestic manufacturing base, dictate that foreign companies should invest 30 per cent of the value of the contract back into the country.(Agencies)