The move, which is to ensure availability of funds for startups, follows concerns regarding the taxation of angel investments in this sector. The Central Board of Direct Taxes will notify the changes separately.
The concerns raised by the domestic steel lobby focus largely on the Chinese non-alloy steel being imported in the country that is presumably being misdeclared as alloy steel, which otherwise is value-added and expensive steel.
While the withdrawal is the first tangible punitive step in what could be an escalatory ladder, its impact on trade is unlikely to be substantial given the low volume — consistently under $2.5 billion on an annual basis.
The sanctioning of lower than requisite funds comes at a time when NPCIL’s budgetary support requirement has gone up in light of the utility taking up 10 new projects that had been cleared by the government in May 2017.
If the number of startups that had been recognised under the scheme is taken into account, the gap between the Startups recognized under the scheme and those that actually ended up receiving exemptions is far wider.
The latest data compiled by the Department of Personnel and Training (DoPT) on recruitment over the last three years through the main agencies show a declining trend in selection and recruitment, from 1,13,524 cumulatively in FY2015 to 1,00,933 in FY2017.