START-UP INDIA – STAND UP INDIA
On the last Independence Day in 2016, Prime Minister Narendra Modi had introduced the Start-up India, Stand Up India’ initiative.
On January 16, Prime Minister Narendra Modi unveiled a 19-point action plan for start-up enterprises in India. He also announced a self-certification scheme related to nine labor and environment laws. He also said that there would be no inspection of the enterprises during the first three years of the launch.
Modi has announced an all-inclusive action plan to boost such ventures that would boost employment generation and wealth creation.
Here are the 19 plans Modi has for start-ups:
The start-ups will adopt self-certification to reduce the regulatory liabilities. The self-certification will apply to laws including payment of gratuity, labor contract, provident fund management, water and air pollution acts.
- Start-up India hub
An all-India hub will be created as a single contact point for start-up foundations in India, which will help the entrepreneurs to exchange knowledge and access financial aid.
- Register through app
An online portal, in the shape of a mobile application, will be launched to help start-up founders to easily register. The app is scheduled to be launched on April 1.
- Patent protection
A fast-track system for patent examination at lower costs is being conceptualized by the central government. The system will promote awareness and adoption of the Intellectual Property Rights (IPRs) by the start-up foundations.
- Rs 10,000 crore fund
The government will develop a fund with an initial corpus of Rs 2,500 crore and a total corpus of Rs 10,000 crore over four years, to support upcoming start-up enterprises. The Life Insurance Corporation of India will play a major role in developing this corpus. A committee of private professionals selected from the start-up industry will manage the fund.
- National Credit Guarantee Trust Company
A National Credit Guarantee Trust Company (NCGTC) is being conceptualized with a budget of Rs 500 crore per year for the next four years to support the flow of funds to start-ups.
- No Capital Gains Tax
At present, investments by venture capital funds are exempt from the Capital Gains Tax. The same policy is being implemented on primary-level investments in start-ups.
- No Income Tax for three years
Start-ups would not pay Income Tax for three years. This policy would revolutionize the pace with which start-ups would grow in the future.
- Tax exemption for investments of higher value
In case of an investment of higher value than the market price, it will be exempt from paying tax
- Building entrepreneurs
Innovation-related study plans for students in over 5 lakh schools. Besides, there will also be an annual incubator grand challenge to develop world-class incubators.
- Atal Innovation Mission
The Atal Innovation Mission will be launched to boost innovation and encourage talented youths.
- Setting up incubators
A private-public partnership model is being considered for 35 new incubators and 31 innovation centers at national institutes.
- Research parks
The government plans to set up seven new research parks, including six in the Indian Institute of Technology campuses and one in the Indian Institute of Science campus, with an investment of Rs 100 crore each.
- Entrepreneurship in biotechnology
The government will further establish five new biotech clusters, 50 new bio incubators, 150 technology transfer offices and 20 bio-connect offices in the country.
- Dedicated programs in schools
The government will introduce innovation-related programs for students in over 5 lakh schools.
- Legal support
A panel of facilitators will provide legal support and assistance in submitting patent applications and other official documents.
A rebate amount of 80 percent of the total value will be provided to the entrepreneurs on filing patent applications.
- Easy rules
Norms of public procurement and rules of trading have been simplified for the start-ups.
- Faster exit
If a start-up fails, the government will also assist the entrepreneurs to find suitable solutions for their problems. If they fail again, the government will provide an easy way out.
The Ministry of Human Resource Development 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 National Institutes of Pharmaceutical Education and Research (NIPERs).
The Reserve Bank of India said it will take steps to help improve the ‘ease of doing business’ in the country and contribute to an ecosystem that is conducive for the growth of start-up businesses.
Educational Institution Alliances
Under the scheme, a group of start-ups will acknowledge an MOU with the prestigious institutions and will also establish the start-up centers in the campus. NIT-Silchar (The National Institute of Technology, Silchar) is one of the institutions of the country to have joined the program.IIT Madras is also linked with this campaign. The institution has been successfully managing the IITM Research Park that has incubated many start-ups.
Startup India recently formed a relationship with TAVtech Ventures, a nonprofit educational organization that is in the process of establishing a platform for collaborative innovation between US, Israeli, and Indian students to launch start-ups.
The quality of education in the institutions of the nation is always questioned and found not matching with the organizations’ standards for the required skillset and they have to spend on training the freshers. The country has also launched the Skill India campaign for addressing the issue.
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