Rationalisation of tax policy to support startups

New Delhi: The Economic Survey on Thursday suggested rationalisation of tax policy for startups to encourage 'innovative investments' in the Indian economy, as it acknowledged their role in driving economic growth and creating jobs.

The Economic Survey for 2018-19, tabled in Parliament by Finance Minister Nirmala Sitharaman, noted that countries across the world recognised the need to evolve tax system that can foster innovation.

"Therefore, tax policy and its implementation for startups must be rationalised to foster innovative investments in the Indian economy," the Survey said.

It pointed out that growth in the new economy cannot be fostered without an ecosystem that rewards innovation and entrepreneurship.