Start-Up India Launched by PM Narendra Modi

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Start-Up India

It was on the occasion of India’s 69th Independence Day that Prime Minister Narendra Modi announced the Startup India initiative from the ramparts of India’s iconic Red Fort. Just five months later, on 16th January, the PM unveiled the historic Startup Action Plan.

PM Modi’s talk was laced with humour: “If anyone asks what’s the difference, the government working on a Saturday that too after 6pm is the difference.” He also said: “When I heard Ritesh (Aggarwal ofOyo) speak, I thought how a tea seller like me didn’t think of setting up a hotel chain.”

In the Vigyan Bhawan auditorium that was bristling with energy and anticipation, PM Narendra Modi announced the Startup Action Plan. Here are the top points (you can check the complete report at the end of this article):

Compliance regime based on self certification – To reduce regulatory burden, startups shall be allowed to self-certify compliance with labour and environment laws. In case of labour laws, no inspection will be conducted for three years. In case of environment laws, startups under ‘white’ category would be able to self certify compliance.

Startup India hub – Will be single-point of contact and hand-holding.

Simplifying the startup process – A startup will be to able to set up by just filling up a short form through a mobile app and online portal that will be launched in April.

Patent protection – PM Modi saidpatent protection and IP rights are a major concern for Indian startups. The government will make IPR procedure transparent for stratups. Fast track mechanisms of startup patent applications – in order to allow startups to realise the value of their IPRs at the earliest possible. Patent applications of the startups shall be fast tracked for examination and disposal.

Panel of facilitators to provide legal support and assist in filing of patent application – Facilitators shall provide assistance for startups in filing and disposal of patent applications related to patents, trademarks and design under relevant Acts. Government shall bear the entire fees of the facilitators for any number of patents, trademarks or designs that a startup may file.

80% rebate on filing patent applications by startups – To enable startups to reduce costs in their crucial formative years, startups shall be provided an 80% rebate in filing patents vis-a-vis other companies.

Relaxed norms of public procurement for startups – to provide an equal platform to startups vis-a-vis the experienced startups/companies in public procurement, startups (in the manufacturing sector) shall be exempted from the criteria of prior ‘experience/turnover’ without any relaxation in quality standards or technical parameters.

Faster exits for startups – To make it easier for startups to exit, provision for fast-tracking closure of businesses have been included in ‘The insolvency and Bankrupcy Bill 2015’. Startups with simple debt structures may be wound up within a period of 90 days from making of an application for winding up on a fast-track basis.

Funds of funds with a corpus of Rs 10,000 crore –  To provide funding support for development and growth of innovation driven enterprises, Government will set up a fund with an initial corpus of Rs 2,500 crore and a total corpus of Rs 10,000 crore over a period of 4 years.
 

Credit Guarantee Fund –  To catalyse entrepreneurship through credit to innovators across all sections of society, credit guarantee mechanism through National Credit Guarantee Trust Company/SIDBI shall be rolled out with a budgetary corpus of Rs 500 cr per year for the next four years.

Exemption from Capital Gains Tax – Exemptions shall be given in casecapital gains are invested in the fund of funds recognised by the government. In addition, existing capital gain tax exemption for investment in newly formed MSMEs by individuals shall be extended to all startups.

Tax exemption for startups – To promote growth of startups, profit of startups, set up after April 1,2016, shall be exempted from income-tax for a period of three years.

Tax exemption on investments above Fair Market Value – In line with the exemption available to venture capital funds to invest in startups above fair market value (FMV), investments made by incubators above FMV shall also be exempted.

Startup fests – For showcasing innovation and providing a collaboration platform

Launch of Atal Innovation Mission

Entrepreneurship promotion via

Establishment of sector specific incubators.

Establishment of 500 tinkering labs with 3D printers in universities.

Pre-incubation training to potential entrepreneurs.

Strengthening of existing incubation facilities.

Seed funding to high growth startups.

Innovation promotion via

Institution of innovation awards (three per state/UT) and three national level.

Providing support to State Innovation councils for awareness creation and organising state level workshops/conferences.

Launch of Grand Innovation Challenge.

Awards for finding low cost solution to India’s pressing and intractable problems.

Setting up of 35 new incubators in institutions – Funding support of 40% (subject to a maximum of Rs 10 crore) shall be provided by central government for establishment of new incubators in existing institutions for which 40% funding by the respective state government and 20% funding by the private sector has been committed.

Setting up of 7 new research parks modeled on the research park at IIT Madras  Government shall set up seven new research parks – six in IITs, one in IISc with an initial investment of Rs 100 crore each. These parks shall enable companies with a research focus to set up base and leverage the expertise of academic/research institution. 31 centres of innovation, 13 startup centres and 18 technology business incubators in national institutions will be established.

Promote entrepreneurship in biotechnology – Five new bio clusters, 50 new bio incubators, 150 technology transfer offices and 20 bio connect offices will be established.

Innovation focused programmes for students – Innovation core program shall be initiated to target school kids with an outreach to 10 lakh innovations from five lakh schools.

A Grand Challenge Program (National Initiative for Developing and Harnessing Innovations) to support and award Rs 10 lakhs to 20 student innovations from Innovation and Entrepreneurship Development Centres. Uchhattar Avishkar Yojana has earmarked Rs 250 crore per annum towards fostering ‘very high quality’ research amongst IIT students.

Source- YourStory

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Published by: SumitOfficial

Hi, I this is SumitOfficial. Age 22 Writer | Blogger | Video Jockey | Orator | Singer | Painter | Sketcher | Interviewer | Artist | MBA. Sumit Yadav (SumitOfficial) is 22 years old ardent blogger, who is engaged in several activities related to art, literature, and creative projects for more than 2 years now and, is also connected with many such people around. He's a Social Media Influencer with his regular blog posts. He is an MBA by qualification and has offered his service in MNC.

Categories Uncategorized14 Comments

14 thoughts on “Start-Up India Launched by PM Narendra Modi”

  1. This if it´s really implemented I think is a great way for enterpreneurs to get on their feet and running and at the same time grow the middle class. Which as I understand, there in India there is a great disparity. You either have quite a bit of money or your in the slums. Very Little in between. They should implement that here in Spain.

    Liked by 1 person

    1. It’s not people here are in slums, it’s just Indians are hardworking and the motto of Start-Up India is to motivate the youth towards entrepreneurship.
      More than 800 million people here in India are youth and less than 35. So, you can guess how it will gonna work for us, for me being an entrepreneur. How this manpower would be come up as one.

      Like

      1. As I said, sounds good to me, specially having that large of young population. But the overall goal when governments tend to do this is to grow the middle class, at least it´s the theory in the Western countries.

        Liked by 1 person

      2. Yes, to grow middle class by providing them employment. But if everyone is seeking for the job then there’ll be no jobs available. So, what PM Narendra Modi is doing is to motivating Youth like us by this plan, Start-Up India. Which will ultimately grow middle class and will reduce poverty.

        Like

      3. Obviously not all people are going to be enterpreneurs, normally there are very few in the whole of the population that are, but as you said they are the ones that provide employment to others. Lets say I build a construction company. I need desks (people have to make them) I need chairs (people have to make them) I need briks (need a provider which he needs trucks so Jobs for conductors, Jobs for the ones who build or repair trucks, wheels, technicians, see how it all trikles down.
        So we are on the same page.

        Liked by 1 person

      4. Not here, here in Spain we are in a very but very bad economic shape. To the contrary, trying to be an enterpreneur and starting up your own Company it´s one burden after another, one tax after the other you have to pay the State just to get the thing running. We are going backwards instead of forward.
        But in Spain, since here is all fesitivities oriented, you keep the bull fights going, and the rest of the festivities and people couldn´t be more happy. They could care less about this subject matter and the overall implications for them. That´s the Spanish mentality. What I call a “parasite” mentality. Always looking up towards the government to give them housing, help them with food, if you have an employee and he is a bad one, if you want to fire him you will be paying him 6 months or more his salary even if he is fired And how in the world are you going to get a new better employee to do that other job when you are still paying the one you just thrown out? So the system here is set up so that people get a lot of “subsidies” which is the government with my taxes, to pay for medical insurance, what I mentioned before and the list goes on. Just a mess. But that way, they do créate a mentality in the population that thy NEED the government to live a “good” life, hence you are better off always voting for the same people because they will take care of you, and obviously that is how the political parties are able to maintain themselves in power. Just a scrwed up mess, if I had the chance to go back in time be 18 and living in the U.S, be back there in a second.

        Liked by 1 person

      5. It´s the law. That way as I said you keep the people happy, hence they will vote for you. They call it a safety net, in my opinión the only net it provides if for that fired employee to sit around the house and not do anything productive with their life. And I know because I live it everydayd with my compatriots. Plus most of the people obviously, as imperfect humans take advantage of that and while they´re getting that money they will have side Jobs that are not declared to the spanish versión of the American IRS. Working in “black”(without paying taxes or being counted in the workforce) is very prevailant in my country. More of the norm than the exception.

        Liked by 1 person

    1. Thank you Parul. 😃
      I hope it is going to be great for our India to make the best productive country. 😆
      It motivated me more towards being an entrepreneur, as by now I don’t really need to think about the funds, what I have to do is to solve the problems which people are facing. 🙂

      Liked by 1 person

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