Stressing on the ease of doing business, Chandrashekhar said: "How do you ease the regulatory environment? How do you make it easier for a company to start up? Can you make it possible for a company to be set up in a day or even three days? Five or 10 member companies, that is the usual size of a startup, cannot spend all the time in compliance."

Citing an example, he said small companies that have not even started making revenues, face a tax deduction the moment they make a sale.

Even though the firm is making a loss, finding it difficult to get financing, it has to pay taxes and then claim refund which typically takes 18 months and that further aggravates the financial problem, he said.

"You are not providing financing and on top of that you are extracting taxes where there is no profit. These are some areas we felt some changes are required," Chandrashekhar said.

Today, a lot of firms choose to register outside India and consequently the value that is created dose not accrue to the country, Chandrashekhar added.

"Why should that happen? There is no way you can control it because the nature of the product is such that it can go anywhere. So if we have the people and workforce is here, which is doing all of this, then we must go into the question of why this value creation is not happening within the country," he explained.

The industry body also urged the new government make the regulatory environment more predictable, legal provision more transparent and remove ambiguity.

"And therefore, we have suggested as a very key element of our recommendations to the government that India Technology Entrepreneurship Mission should be set up, which will look at each of these areas that what do we need to do in areas like finance, IT, infrastructure, ease of business and then continuously address those issues," Chandrashekhar said.

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