START-UP INDIA, STAND-UP INDIAHARVEER SINGH

TO PONDERCan India genuinely become a global hub for innovation?

Can start-ups become the engine of India’s growth?

START-UP INDIA The profits of Startup initiatives are

exempted from income tax for a period of 3 years.

labour laws: No inspection will be conducted for a period of 3 years.

Environment laws:Startups falling under 'white category' would be able to self-certify and only random checks would be carried out

patents, trademarks or designs fee to be borne by Govt.

START-UP INDIA….CONTD Fund: initial corpus of Rs.2,500 crore

and a total corpus of Rs.10,000 crores over a period of 4 years.

Credit guarantee mechanism through National Credit Guarantee Trust Company (NCGTC) or SIDBI is being envisaged with a budgetary corpus of INR500 crore per year for the next four years.

capital gains Exemptions. prior experience/turnover” criteria may

be relaxed.

START-UP INDIA….CONTD Launch of Atal Innovation Mission for

Entrepreneurship and Innovation promotion.

Tax Exemption for Venture Capitalists. incubators across the country in public

private partnership. 7 new Research Parks :To promote

innovation through incubation and joint R&D efforts between academia and industry’

START-UP INDIA….CONTDTop 50 companies in India have

been requested to contribute towards strengthening the incubation facilities in the country through their Corporate Social Responsibility (CSR) initiatives.

ELIGIBILITY The firm incorporated should be less than

five years old Annual Revenue of less than Rs 25 crore Needs to get approval from inter-ministerial

board to be eligible for tax benefits Get recommendation from an Incubator

recognised by government, domestic venture fund or have an Indian patent

PROGRESS SO FAR Nidhi: National Initiative for Development

and Harnessing Innovations (NIDHI), an umbrella programme which aims to nurture ideas and innovations in the startup ecosystem.

the ministry will be infusing Rs 500 crore into the programme in the next few years

PROGRESS SO FAR..CONTD.. PRAYAS (Promoting and Accelerating Young

and Aspiring Innovators & Startups), is one of the components of NIDHI. The idea is to encourage innovators by providing access to the Fabrication Laboratory as well as a grant of up to Rs10 lakh.

Additionally, there is the Seed Support System, providing up to Rs 1 crore per startup and implemented through technology business incubators.

PROGRESS SO FAR..CONTD.. the department has launched more than 100

technology business incubators in academic and R & D institutions which include IITs, IIMs, NITs, and other institutions.

Every incubator focuses on a technology domain, and all of them combined house more than 2,000 startups and offer a total incubation space of approximately seven lakh sqft.

PROGRESS SO FAR..CONTD.. Ministry of Electronics and Information

Technology (MeitY) is working To boost domestic electronic manufacturing,

the government plans to incubate 50 early-stage startups and

To create at least five global companies in the electronic systems design and manufacturing (ESDM) sector over the next five years.

Electropreneur Park has been set up at University of Delhi, South Campus to incubate 50 early stage start ups and create atleast 5 global companies over a period of 5 years.

MINISTRY OF ELECTRONICS AND INFORMATION TECHNOLOGY (MEITY) CSR: ONGC set up a Startup Fund of 100

Crores. A total of 728 applications had been received

till July 18, 2016 for ‘startup’ recognition,Commerce and Industry Minister Nirmala Sitharaman said in a written reply in the Rajya Sabha.

ARE MORE STARTUPS REALLY GOOD FOR ECONOMIC GROWTH? India is amongst the five largest startup

communities of the world, and the youngest of all. 

Investors pumped $9 billion into Indian startups in 2015. The same year, China saw $36 billion and the US saw more than $500 billion in funding.

Myth: more entrepreneurs means more businesses, more jobs, more competition, and more innovation.

Fact: the relationship between per capita income and entrepreneurship is mostly negative (Gallup)

when the initial push of the investors and VCs fizzles out and the constant stream of finance also isn’t readily available so 2-3 years Startups Die Out.

Need for Sustainable Jobs. Learning Curve of the Economy. it’s the “scale-ups” that actually have a

telling effect on the economy, society and innovation in a country

FINAL SAY.. NASSCOM Start-up Report 2015, start-ups

created 65,000 new jobs in 2014 and by 2020, the number is expected to touch 2,50,000.

That’s an ambitious plan and as of now, driven almost entirely by private sector initiative

If India succeeds in establishing a pro-active start-up eco-system as intentioned, then the potential for new job creation will be far greater than NASSCOM’s projections.

The international business community accepts India as one of the most attractive destinations for investments and of late, has discovered India’s potential for innovation and creativity.

FINAL SAY..CONTD.. The last three years has seen significant

scale up in international investments in start-ups and this has led to skyrocketing valuations, exceeding $ 1 billion in some cases, a phenomena that would have been unbelievable just five years ago.

And this has been achieved with little or no support from the government.

Thus with the support of the govt, India can transform itself and lives of its people.

FINAL SAY..CONTD..Synergising 'Startup India' with 'Make in India' and 'Digital India' initiatives has the potential to expand the domestic ecosystem for not only new entrepreneurs but also for the wider economy.

STAND-UP INDIA The Stand Up India scheme is anchored by

Department of Financial Services (DFS) to encourage greenfield enterprises by SC/ST and women entrepreneurs.

It will facilitate at least two such projects per bank branch, on an average one for each category of entrepreneur.

Target: at least 2.5 lakh approvals in 36 months

CONTD….STANDUP INDIARefinance window through Small

Industries Development Bank of India (SIDBI) with an initial amount of Rs 10,000 crore.

 Provides for handholding support for borrowers both at the pre loan stage and during operations.

CONTD….STANDUP INDIA Loans repayable up to 7 years and between

Rs 10 lakh to Rs 100 lakh for greenfield enterprises in the non farm sector set up by such SC, ST and Women borrowers.