Entrepreneurship needs new laws: Experts

Legal and judicial reforms are required for the development of financial systems and to create a favourable environment for growth of entrepreneurship, says the initial recommendations of an Indo-American joint working group deliberating on how  to drive entrepreneurial growth in India.

The Kauffman Foundation and The Indus Entrepreneurs were working together through a panel of experts from both the countries that will come up with a white paper at the end of the Kolkata chapter with specific policy recommendations for the government departments and bodies. 

India needs sustained democratic action to foster growth of entrepreneurship in the country, said David Bohigian, assistant secretary of commerce for market access and compliance, International Trade Administration, US Department of commerce at the symposium.

The problem in India is that of enforceability of contracts, and more certainty is welcome in the system through legal reforms, he added. 

The working group will come up with a white paper that will be formally released by the chief minister of the state, Budhdhadeb Bhattacharya on February 1, said Shoummo K Acharya, president TiE, Kolkata chapter. 

This will be followed by subsequent brainstorming sessions in Delhi that will again come up with a set of recommendations. 

These suggestions would then be placed before the Planning Commission of India, Department of Science & Technology, and Ministry of Corporate Affairs for following up, Acharya clarified.

As for the legal reforms, bankruptcy laws needed to change fast as they could allow to recycle the locked up assets of failed enterprises and other corporates, said D Chatterjee, chairman North East Council of Confederation of Indian Industries.

Moreover, there was need to rationalise the laws in case of start-up ventures together with insolvency laws so that unnecessary delays could be avoided, he added.

Chatterjee also recommended that road maps were required to be drafted to transform policies into laws.

Major areas for reform were already identified, and the road map and end dates for implementation of the same now had to be worked out as was done in the case of the general service tax, he added.

Other areas that needed immediate attention were the urban land ceiling act, agricultural and food processing laws, especially in the context of West Bengal, Chatterjee said.