NEW DELHI: Prime Minister Narendra Modi’s Startup India initiative is taking shape, with the help of inputs from such stars of the startup world as SoftBank President Nikesh Arora , Snapdeal Chief Executive Officer Kunal Bahl , Oyo Rooms founder Ritesh Agarwal and former Infosys director Mohandas Pai A host of venture capital (VC) funds and angel investors have also come forth with their suggestions. A detailed policy to encourage startups is likely to be unveiled in December.The department of industrial policy & promotion (DIPP) has held several rounds of discussions with these stakeholders to draw up a 40-point action plan which will address key concerns of entrepreneurs.“We are getting a feel of realities at the ground level. These interactions have helped in (understanding) the issues that have to be addressed to build an ecosystem for startups. These relate to different departments, including corporate affairs, banking, Reserve Bank of India, economic affairs,” a senior DIPP official told ET.Startups have flagged delays in incorporation of companies, issues relating to employee stock options, lack of availability of initial funding, cumbersome Foreign Exchange Management Act (FEMA) documentation and access to external commercial borrowings as areas where work on the policy front is needed.“The government has been very receptive to our suggestions that what we need is ease of doing business for startups. Incentives can come later. Young techies don’t understand all these compliances and complex documentations which make moving money in and out of India so difficult,” said Pai, who is part of the deliberations.The 40 areas of action also include liquidation and winding up of companies, a crucial concern as budding entrepreneurs want a clean and quick exit should their venture fail.A plethora of compliance requirements under various statutes for venture capital funds and angel investors is another area of concern for the startup community.Tax breaks for private equity investors and incentives for incubators are also part of the wish list.DIPP will put these points before the departments concerned in the next inter-ministerial discussion on the Startup India initiative, seeking urgent action on each of the issues flagged.The Indian startup ecosystem is among the top five in the world.Startups have created more than 80,000 jobs so far, according to a report by the National Association of Software & Services Companies (Nasscom).As many as many 11,500 startups could come up by 2020 creating 250,000 jobs, the report says.Ensuring that startups thrive in India is crucial if PM Modi is to deliver on his promise of creating crore-plus jobs, made during the 2014 general elections. “We are trying to get startups to shift from digital to manufacturing and from tier-I to tier-II cities to create more jobs and (ensure) inclusive growth,” the official added.DIPP has also written to The Indus Entrepreneurs (TiE) Silicon Valley, a non-profit organisation for fostering entrepreneurship, to seek inputs for the Startup India programme.So far, two rounds of meetings have been held by the Prime Minister’s Office with various government departments to decide upon incentives for startups.