Start-ups are trendy, start-ups are cool, and start-ups are catching on. The start-up trend in India is picking up, and it is proving to be infinitely beneficial to the national economy. Not only are start-ups taking care of the unemployment problem in India, but it is also contributing to the GDP.
Over the years, start-ups have really caught on, and things seem to be soaring higher and higher as the trend gets more years under its belt.
To boost this culture, the government of India initiated the Startup India scheme.
What is Startup India?
Startup India essentially is a campaign by the government of India announced by PM Narendra Modi during his 2015 address from the Red Fort in New Delhi.
What are the objectives of Startup India?
The primary objective of the scheme is to make it easier for start-ups to flourish in the country and to grow profit margins year after another. To accomplish it, the campaign has the following action plan in place
- Simplification and a certain level of handholding for companies who have practically no idea of how to run a business
- Funding business and offering incentives so that they have a platform, to begin with
- Offering industry-recognized academia and partnership opportunities
Definition of a startup in India
According to Indian law, a startup is any entity that has its headquarters in India and has been established less than 10 years ago and one which has an annual turnover of less than ₹100 crores.
Salient features of the Startup India Mission
- To begin with, there has been a total sum of ₹10,000 crores earmarked as a startup pool.
- There will be a reduction in patent registration fees for companies who barely have the capital to run procedures.
- There will be a revised and improved Bankruptcy policy in place which ensures a 90-day exit window for organizations that wish to opt-out of the scheme.
- There will be freedom from inspections of any kind for the first three years of operation.
- There will be freedom offered from Capital gain tax for the first three years of the company’s operation.
- The startup will be exempted from tax for the first three years of its operation.
- Self-certification compliance will be offered as well.
- Under the Atal Innovation Mission, there will be an Innovation Hub created.
- In order to get maximum results, 5 lakh schools are to be targeted and the scheme aims to involve 10 lakh children in innovation-related programs.
Government’s role in the scheme
The Ministry of Human Resource Development (now renamed as Ministry of Education) and the Department of Science and Technology partner in the initiative to set up 75 startup support hubs in the National Institutes of Technology (NITs).
The government encourages the role of start-ups and acknowledges that this would be the way to go in the long haul if India is looking at changing into a developed economy by the end of this decade.