Creating Creators: Startup India to propel economy, employment

Creating Creators: Startup India to propel economy, employment

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What if your idea is not just an idea? What if it sees the light of the day? What if you can get someone to believe in it and help you nurture it? What if the whole world embraces it?

Young minds kindle new ideas every day. For a new idea to become a successful commercial venture, adequate support at various stages of the business life cycle is required. Young Indians today have the conviction to venture out on their own and a conducive business environment lets them watch their ideas come to life. In today’s environment we have more Startups and entrepreneurs than ever before and the movement is turning into a revolution.

Startup India, the Government of India initiative intended to nurture innovation and Startups in the country, will drive sustainable economic growth and generate large scale employment opportunities.

Many Startups often do not reach their full potential due to limited guidance and access. One of the key challenges faced by new entrepreneurs in India has been access to finance. In order to provide funding support to Startups, the government will set up a ‘fund of funds’ with a total corpus of ₹10,000 crore that would start with an initial ₹2,500 crore annually for the period of four years. The fund will not be invested directly into Startups, but shall participate in the capital of SEBI registered Venture Funds.

Secondly, to improve the ease of doing business and also building an exciting and enabling environment for these Startups, Prime Minister Narendra Modi’s ‘Start-Up Action Plan’ has a 19-point agenda, including incentives such as self certification for complying with labour and environment regulations; a panel of facilitators to help file patent and intellectual property rights application; tax exemptions for seed funding; capital gains and three-year holiday on income tax as well as a ₹10,000 crore financing support through a fund of funds for four years.An effective Startup ecosystem can’t be created by the Startups alone. It is dependent on active participation of education sector, investors, industry and other stakeholders. Paramount importance for growth of Startups is regular communication and collaboration within the Startup community, both national as well international.

To bolster the Startup ecosystem in India, the Government is proposing to introduce Startup fests at national and international stages. These fests would provide a platform to Startups in India to showcase their ideas and work with a larger audience comprising of potential investors, mentors and fellow Startups.

India currently lacks conducive business environment including physical infrastructure, access to networks, and access to market across various parts of the country. Of all these features, physical infrastructure entails large capital investments, which can generally be facilitated by the government. The funding for setting up of the incubators shall be provided by NITI Aayog.

With a view to stimulate the development of Startups, the Government will set up and scale up 31 Research and Development centres of innovation and entrepreneurship at national institutes to provide facilities for over 1,200 new Startups. The Government shall set up seven new Research Parks in institutes below with an initial investment of INR 100 crore each. The Research Parks shall be modelled based on the Research Park setup at IIT Madras.

Various government departments and agencies including Department of Science and Technology, Department of Biotechnology, Department of Electronics and Information Technology, Ministry of Micro, Small and Medium Enterprises, Department of Higher Education, Department of Industrial Policy and Promotion and NITI Aayog would enter into a standard Memorandum of Understanding with identified private sector players for creation of academia-industry tie-ups for nurturing innovations in education institutions.

To be eligible, the Department of Industrial Policy and Promotion has defined start-up as an entity, incorporated or registered in India not prior to five years, with annual turnover not exceeding ₹25 crore in any preceding financial year, working towards innovation, development, deployment or commercialisation of new products, processes or services driven by technology or intellectual property.

To quote Prime Minister Narendra Modi, “I see startups, technology and innovation as exciting and effective instruments for India’s transformation.”

 

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