In 2015, the Indian Government launched a mission to increase the startup ecosystem by promoting startups that are inclusive and sustainable. The government also realized that encouraging entrepreneurs can provide many benefits, including boosting employment opportunities.Jobsrose.com The initiative has been aided by the creation of the Startup India Action Plan (SIAP), which is an important step towards promoting a digital economy in India.
As the country becomes more financially competitive, it is important for companies to explore opportunities in startups outside of India’s major metropolises.
The Indian Government’s “Startup India” mission focuses on promoting a digital economy by providing funding, mentorship, and tax incentives to startups.
In order to encourage investment in local businesses, the government has developed financial schemes such as Startup India Venture Capital Fund (SIVCF), Startup India Angel Fund (SI Angel), and Startup India Credit Card. These initiatives are meant to provide funds to startups in order to encourage growth.
Startup India: An Initiative of the Government of India :
1. Introduction :
In January 2016, the newly elected Prime Minister of India Narendra Modi launched Startup India, an initiative designed to catalyze entrepreneurship and foster innovation. Startup India aims to create a conducive environment for nurturing startups and acknowledge the importance of startups in building a strong entrepreneurial ecosystem.
2. Objective :
The government wants to promote inclusive growth by enabling the startup ecosystem in India by raising funds and promoting innovation and entrepreneurship through the creation of various initiatives such as:
• The ‘Startup India’ Action Plan which provides tax benefits for three years through income tax exemption on profit for 3 years capped at Rs. 1 crore, 80C deductions for investments in shares issued by startups and capital gains up to Rs. 1 crore.
• The ‘Fund of Funds for Startups’ in partnership with Wells Fargo, State Bank of India and ICICI Bank Ltd. The government will invest Rs.10,000 crores over the next four years to create a fund to promote startups. This fund will provide a further impetus to investments in this sector.
• The ‘Startup India Hub’ which is meant to be an online platform that provides one-stop solution to all queries related to setting up a startup in India. It also acts as a knowledge sharing platform between the government, incubators and accelerators, mentors and other stakeholders involved in the startup ecosystem.
3. Issues :
• Lack of capital.
• Lack of proper mentorship.
• Lack of proper financial planning.
4.Actions to be taken :
• Government should act as a facilitator so that startups receive proper financial planning through stipulated mentors and incubators in the country.
• Government should also help startups receive financial planning from those who have been successful in their fields through micro finance schemes and multiple other initiatives that have been proposed by the government of India.
• The government should promote awareness about the ‘Startup India Action Plan’ among people so that Startup India can be carried out successfully in India.
5. Conclusion :
• This is an amazing initiative taken by the Government of India, in order to turn India into a digital economy.
• The policy focuses on providing mechanisms to clear bottlenecks in terms of funding and mentorship, which are very crucial for startup development.
• The government is ensuring that startups receive benefits like tax exemptions and soft loans to set up their business.
• Startup India is a start towards the ‘Make In India’ campaign which aims at making India a world leader in the manufacturing sector and this can only be possible if we promote all the sectors including manufacturing, services, IT sector, tourism and other profitable sectors.
• The government of India has laid a strong foundation for India to be confident about its future.
• Startup India is the only platform which helps startups take off in India and the excellence will definitely help us to achieve our goal.
• There are many things related to this policy that need to be done in order to promote startups in India.
• The government should acknowledge all the businesses and startups which are already successful despite these challenges and give credit where it’s due.
• The government should acknowledge all entrepreneurs/entrepreneurial minds who have played their part in making this movement possible by acknowledging them through awards and felicitations.
• The government should give proper attention to startups in rural areas so that they can help them grow as well.
• There is a need to set up incubators and accelerators not just in metros but also in smaller cities to help startups grow.
• We need to make the youth aware of such initiatives being taken by the government so that they feel motivated and play their part.
• The government should also ensure that these policies are implemented properly and the benefits reach entrepreneurs who deserve it.
