A start-up flood in India- The Modi Wave

The ‘Make in India’ movement initiated by the BJP government gave rise to a large number of entrepreneurial opportunities in the Indian ecosystem and received proposals worth 110 lakh crore. Companies like Acer, Micromax, General Electronics, Xioami and One plus among many gave thumbs up to this venture. This focus on developing manufacturing sector, IT sector, other industries and securing more foreign direct investment brought to light the need to develop the ecosystem for businesses, India’s low ranking on the ‘ease of doing business index’, the stringent and vague laws, the need for digitalization and to develop more entrepreneurs in the country.
To counter these challenges, the Modi government proposed a revolution on the 16th of January, 2016 in Vigyan Bhavan in the 19 pointer proposal ‘Start-up India’.  The Start-up revolution incorporates the key points of providing a business environment to foster innovation, introducing transparent laws, protecting intellectual property of the Make in India movement and follow the philosophy less government, more governance by digitalizing the procedure of registration and other applications.

 

A start-up flood in India- the Modi wave
Image Credits: Indianexpress.com

 

The move proposes to digitalize the registration procedures and other applications, ensure easy entry and easy exit, assist in funding and protect intellectual and youth property.

The move includes 19 key features mainly for simplification and handling, funding support and incentives and industry academia partnership and incubation.

  1. Self-certification for a simple compliance regime
  1. Start-up India Hub to connect start-ups and provide guidance
  2. Digitalization: To register business in a single day via a mobile app
  3. Legal Support : For easy applications and tracking procedures
  4. Easy public procurement due to relaxed norms
  5. Faster Exit for start-ups
  6. Providing Funding support with a fund corpus of 10000 crore Rs.
  7. Credit guarantee fund support for start-ups
  8. Tax Exemption on Capital Gains
  9. Tax Exemption to Start-ups for 3 years
  10. Tax Exemption on Investments above Fair Market Value
  11. Organising Fests to provide a stage for collaboration and to showcase innovations
  12. Atal Innovation Mission to boost innovation and encourage talented youth
  13. Harnessing Private Sector Expertise for Incubator Setup
  14. Building innovation programs at national institute
  15. Setting up 7 research parks modelled on the research park of IIT Madras
  16. Developing Entrepreneurship in biotechnology
  17. Launching innovation programs for students to encourage future entrepreneurs
  18. Annual incubator challenge to develop entrepreneurship

See the detailed Action Plan

“Start-up India, Stand up India” acknowledges the importance of new entrepreneurs in the Indian ecosystem and is a move to transform job seekers in to job providers. The key feature of this move is to facilitate easy entry and easy exit to entrepreneurs in the market. A new entrepreneur can get registered with the ministry of corporate affairs through in a single day. Register at http://startupindia.gov.in/registration.php.

“When I said ‘Start-up India, Stand up India’ it swayed away with the air, but today people will know what is it.” said the prime minister and raised the entrepreneurial spirit of the country. Those words were not swayed away but a Modi wave was fanned by the entrepreneurs and gained a large response of around 700 start-up applications in June of which 180 were accepted and completed.