Dedicating Rs. 10,000 crore for funding of Start-ups, prime mnister, Narendra Modi launched the Start-up India initiative in New Delhi on Saturday. And seemingly it qualifies amongst the best action of the government in recent times. That being an entrepreneur in the country can be best described as a hurdle ridden road fraught with redtapism and corruption is well known. As for startups it was a pure uphill task. That seems to be changing.
Amidst a host of announcements and encouragement, the roadmap to promoting entrepreneurship was laid open. And clearly what was reflected was that a lot of thinking and hard work had preceded the announcements. Many benefits and incentives for budding entrepreneurs as also profitable opportunities for investors now comes to the forefront. Naturally, it has won praise on all fronts.
Says Manu Agarwal, CEO & Founder, Naaptol Online Shopping “This initiative will help startups get a foothold in India. It will bring the aspiring entrepreneurs and investors on a common platform. We too were a startup not too long ago and with the right cash infusion at the right time, we’ve grown to be the leading home shopping company in India.”
Adds Rohit Aggarwal, CEO and Founder, Koenig Solutions, “Being a unique startup company in India, I believe this campaign can surely boost entrepreneurship and job creation. With the new policy, we not only expect the government to ease the regulatory compliance, but also exempt the startups from the taxes imposed by the central and state government. A change in tax regulation can boost further investments into the startup segment. Besides, we are also hopeful about the government announcing some concrete measures to deal with the skilled labor crisis that exists in India. This will give a new dimension to employment where more and more jobs will be generated. Energetic, Highly skilled and multi talented youth of the country will be benefited.“
“The Startup Action Plan unveiled by Prime Minister Narendra Modi is very encouraging, dynamic and invigorating. Measures like single point contact, patent protection, creation of funds of funds and on top of all tax incentives will provide a huge boost to the entire startup ecosystem and propel startups to the next level. The government is very supportive and believes in the tremendous potential of entrepreneurial ventures and how immensely they can contribute to the socio-economic growth of the country” said Saurabh Arora, CEO, Lybrate, India’s largest online doctor consultation platform.
“Start-ups in India have altered the business landscape beyond recognition, both in economic terms and from a socio-psychological perspective. India ranks third in the sheer number of businesses started. Incubators and supportive ecosystems too have seen a surge in frequency and density. Ventures like Flipkart, Freshdesk, Practo, and BankBazaar have leveraged these phenomena to deliver real-world solutions to issues that Indian consumers were grappling with not too long ago. The mood at the launch event and the expectations from the policy measures matched the scale of the event itself, ” said Adhil Shetty, CEO & Co-Founder Bankbazaar.com. They were among the many who were all in praise of the Start Up India Initiative.
More importantly, the government's thinking has clearly gone beyond just the start up point and the likely possibility of some businesses failing has also been taken into consideration. So an Exit route may soon be on the cards. The government is working to make it easy for budding entrepreneurs to start a business or exit from it and this would give a further boost to the Indian startup ecosystem. Says Union Minister Nirmala Sitharaman, "I understand that starting a startup is as much important as somebody who wants to exit from it. The government is working to make the exit also (easy)." Sitharaman said Finance Minister Arun Jaitley is working "hard" on the Bankruptcy Code.
The Insolvency and Bankruptcy Code 2015, which seeks to provide an easy exit option for insolvent and sick companies, has been referred to a 30-member joint committee of the Members of Parliament for further scrutiny.
"I am sure with these (measures), we will be doing the right thing for the startups" so that they stay here in India "and not look at having a domicile somewhere else," the Commerce and Industry Minister said. If that happens the future is certainly going to be a good time for budding entrepreneurs and India as a whole.