India’s Union Finance Minister Nirmala Sitharaman in her Budget 2021 speech has proposed the usage of Artificial Intelligence, Machine Learning, and Data Analytics for the Ministry of Corporate Affairs.

"During the next financial year2021-22, we'll be launching artificial intelligence, data analytics, machine learning-driven MCA21 Version 3.0. This Version (3.0) is going to have extra modules for Compliance Management, e-scrutiny, e-Consultation, and e-Technology" said Sitharaman during the speech.

Technology industry experts opine that the goal of this concept is to ensure easier compliance which may be done instantly on an auto-pilot mode. Furthermore, the use of AI, ML, and also data analytics guarantees interlinked databases.

The MCA's portal is one of the most important platforms, particularly for the startup ecosystem, wherein all of the stakeholders such as investors, regulators, and businesses submit their filings at the portal.

Finance Minister Nirmala Sitharaman has announced the use of deep analytics and artificial intelligence to track and evaluate the tax evasion issue in GST along with the application of its in e-Governance and to ease the compliance burden. 

Based on the budget announcement, the Goods & Service Tax Network (GSTN) capability has also been enhanced together with the deployment of analytics and AI, which will assist the companies to recognize the tax evaders and monitoring the fake billers.

The original announcement of deploying artificial intelligence in the MCA-21 portal was produced in 2019, wanting to make compliance less complicated and regular enforcement activities seamless. However, with the financial announcement this year, artificial intelligence appears to have a deeper effect.

The features of artificial intelligence and machine learning will also ensure that the databases are interlinked to fill in the known details for every user. This brings automation to the entire process, allowing the carry-out of routine enforcement 24×7 via autopilot.

For the startup ecosystem, this shift is now much more vital, as "MCA-21 shares essential info to different stakeholders including the investors, companies, and regulators." Such action will just increase the authenticity and comprehensiveness of businesses and startups.