The Start Up India mission, a mega initiative by Prime Minister Narendra Modi that aims at giving a boost to entrepreneurship and job creation in the country was unveiled in New Delhi on Saturday. The program specifically envisages technology business incubators and research parks.
The HRD Ministry and the Department of Science and Technology have agreed to partner in an initiative to set up over 75 such startup support hubs in the National Institutes of Technology (NITs), the Indian Institutes of Information Technology (IIITs), the Indian Institutes of Science Education and Research (IISERs) and NIPERs or National Institutes of Pharmaceutical Education and Research. Softbank founder Masayoshi Son mentioned at his speech, “It is not the technology that we will back, we will invest in companies that use technology to disrupt businesses.”
Many of these measures would be part of the Union Budget, said finance minister Arun Jaitley. The PM further announced Rs 10,000 crore corpus fund for start-ups and a credit guarantee scheme for Rs 500 crore a year for four years. Tax exemption on capital gains and income tax holiday for three years were among the other big-bang incentives announced to “promote growth and profit”. In addition to this, the government announced tax exemptions on incubation, investments, partnerships with academia, launch of Atal Innovation Mission, seed funding and research parks. The PM also discussed innovative concepts such as start-up fests, at both national and international levels.
Businesses across the country welcomed ‘Startup India, Stand Up India’ with much positive sentiment. Here’s what some industry leaders have said on the Start Up India mission launch.
“We are delighted that the Central Government is focusing on Start Ups and the Start Up India communities initiative will serve as a great enabler by making trusted information related to setting up and doing business available on fingertips. It will also enable Start Ups/New Entrepreneurs to connect with established businesses many of who are members of CII network and can help in mentoring/assisting them.” - Chandrajit Banerjee, Director General, CII.
“This initiative is very unique because it allow for the momentum and utility factor of Start Up India to continue after the launch by the Governmen. By staying connected at a national level and a city level, we expect that entrepreneurs will easily be able to come together for various constructive purposes including working with Government at district, state and country level to make starting up and doing business easier.” - Sachin Taparia, Chairman and CEO, LocalCircles
“With the Start Up Action plan, we will see more young entrepreneurs take the risk of starting their own venture and building innovative solutions to solve meaningful problems for Indian as well as for the global audience. I think the Insolvency and Bankruptcy Bill that will allow startups to exit faster, within 90 days is a great step towards encouraging more people to take the plunge of starting a new venture, without the fear of failure.” -Shashank ND, Founder & CEO, Practo
“From a policy standpoint there are some welcome changes. Relaxation on Capital Gains for funds is the biggest, including exemption from capital gains when one has the ability to raise capital over Fair Market Value. However the fine prints are yet to be seen on this. Ease of starting a company, regulatory compliances and self certifications will ensure that startups can run hassle free without government interference. Protection of IP in India has always been a issue, and new policy on patents can help protect various innovations that the country produces. Although, the Income Tax exemption might not help the startups too much as during build up phase most startups either lose money or make very little profits.” - Anurag Jain, Co-founder & COO, Girnar Soft (Cardekho.com)
“Income and Capital Gains Tax exemptions game changers. One can expect India giving Silicon Valley run for its money over the next three decades. Today’s announcements are enormously positive in potentially making India (replacing USA) as the country that leads and drives future innovation in the world.” - Vijay KG, founder, Luxepolis
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