Indian Economy and Government current

2. START-UP INDIA, STAND-UP
INDIA
HARVEER SINGH

3. TO PONDER
Can India genuinely become a
global hub for innovation?
Can start-ups become the engine
of India’s growth?

4. 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.

5. 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.

6. 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’

7. START-UP INDIA….CONTD
 Top 50 companies in India have been
requested to contribute towards
strengthening the incubation
facilities in the country through their
Corporate Social Responsibility
(CSR) initiatives.

8. 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

10. 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

11. 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.

12. 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.

13. 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.

14. 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.

15. 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.

16. 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)

17.  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

18. 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.

19. 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.

20. 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.

22. 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

23. CONTD….STANDUP INDIA
Refinance 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.

24. 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.