New Delhi, Jan 21 (KNN) The default option of the administration stifles startups and innovation, said Sanjeev Sanyal Principal Economic Advisor in the Ministry of Finance.

He was speaking at the seminar on ‘Repositioning Indian Talent Pool on a Global Frontier’ at Vibrant Gujarat Summit.

He said that the recent angel tax on startups is an example of default option. Some rules and regulations are killing innovation that the government is trying to foster.

Several startups have received 'angel tax' notices. The government recently tweaked the rules to avoid problems in future but in cases where tax assessment has been completed, the startups will have to seek legal remedy.  

He said, "Neither the government nor the tax department wants to stifle startups, but the default option of the administration gets in the way of startups.”

Besides, the seminar also covered various aspects of international market opportunity for Gujarat based players encompassing market size, growth drivers, and industry trends; acknowledge the role of young in bringing the right skillsets to the ecosystem; identify whitespaces in the market and measures to be taken by players to address these opportunities.