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Startup India Scheme
Introduction:
In January 2016, Prime Minister Narendra Modi inaugurated the Start Up India Action Plan, aiming to cultivate innovation and entrepreneurship within the nation. Fast forward three years, India has emerged as a prominent player in the global startup landscape. The government has diligently recognized the potential of startups spanning various sectors, emphasizing on three crucial elements: capital, courage, and connections, essential for entrepreneurial ventures. This concerted effort has spurred a notable surge in entrepreneurial activity, particularly in Tier-2 and Tier-3 cities, with a significant rise in women participation under the Startup India program.
About Startup India:
Startup India stands as a flagship initiative of the Government of India, designed to foster a robust ecosystem conducive to innovation and startups, thereby driving sustainable economic growth and generating employment opportunities on a large scale. Through this initiative, the government aims to empower startups to thrive through innovation and creative design. The campaign was kickstarted by Prime Minister Narendra Modi in his address on 15th August 2015 from the Red Fort in New Delhi, followed by its formal inauguration on 16th January 2016.
Startup India Activities and Initiatives:
A startup, defined as an entity headquartered in India, operational for less than 10 years, and with an annual turnover below ₹100 crore, forms the focal point of this initiative. Under Startup India, several initiatives have been rolled out, including the I-MADE program to assist Indian entrepreneurs in building mobile app startups, and the Pradhan Mantri Mudra Yojana, facilitating micro-finance and low-interest rate loans to entrepreneurs from economically disadvantaged backgrounds.
Startup India Various Benefits:
The initiative offers a plethora of benefits, including a ₹10,000 crore startup funding pool, reduced patent registration fees, and favorable provisions in the Bankruptcy Code ensuring a 90-day exit window. Startups also enjoy a three-year exemption from inspections, capital gains tax, and income tax, along with simplified compliance through self-certification. Additionally, innovative hubs have been established under the Atal Innovation Mission to nurture innovation among school children and provide IPR protection to startup firms.
Startup India State Rankings:
The initiative extends to state-level rankings, with Gujarat and the Andaman & Nicobar Islands leading the pack, followed by Karnataka and Kerala as top performers. States like Maharashtra, Odisha, Rajasthan, Bihar, and Chandigarh exhibit promising leadership, while others like Telangana, Uttarakhand, Haryana, Jharkhand, Punjab, and Nagaland are aspiring to enhance their startup ecosystems.
Overview of Startup India Action Plan:
To achieve its objectives, the Government of India has unveiled a comprehensive Action Plan addressing various facets of the startup ecosystem. This plan aims to broaden the scope of the startup movement from digital/technology sectors to diverse fields like agriculture, manufacturing, healthcare, and education. It also endeavors to expand the geographical reach of startups from Tier-1 to Tier-2 and Tier-3 cities, including semi-urban and rural areas. The Action Plan is structured around simplification and handholding, funding support and incentives, and industry-academia partnership and incubation.
Highlights of the Startup India Action Plan:
The Action Plan lays emphasis on simplifying compliance through self-certification and establishing the Startup India Hub as a centralized platform for ecosystem interaction. It introduces measures like legal support for patent examination, rebate on patent filing, and relaxed norms for public procurement, along with provisions for faster exit mechanisms for startups. Funding support is bolstered through the creation of funds of funds, credit guarantee mechanisms, and tax exemptions on capital gains and profits. Industry-academia collaboration is fostered through initiatives like Startup Fests, the Atal Innovation Mission, and setting up innovation centers and research parks across the country.
Startup India Seed Fund Scheme:
In continuation of its efforts, the government has launched the Startup India Seed Fund Scheme (SISFS) to provide financial assistance to startups for various stages of development. With a corpus of ₹945 crore over the next four years, this scheme aims to support around 3,600 startups through eligible incubators across India, particularly focusing on Tier-2 and Tier-3 towns.
Conclusion:
The startup landscape in India has witnessed significant growth, with startups proliferating across the nation and a notable emphasis on promoting women entrepreneurs and fostering inclusivity and innovation. While stakeholders continue to work towards aligning domestic policies with global trends, the role of state governments in nurturing the startup ecosystem remains pivotal. The need for low-cost, high-impact solutions and enhanced integration within the ecosystem underscores the importance of concerted efforts in driving India’s growth story forward.
official website :https://www.startupindia.gov.in/
more schemes :https://governmentsschemes.com/
