Startup India is a flagship initiative launched by the Government of India on 16th January 2016 to build a healthy eco-system for nurturing innovation and startups in the country which will drive economic growth and generate large-scale hiring possibilities. The Government through this initiative aims to empower startups to grow through innovation and idea.
Recently, JK Minister gave this statement “Startup India encouraging youths to be ‘job givers’ not ‘job seekers'” So, I thought of digging the past one-year experiences related to Startup India. Do you agree with this statement? Comment below and let us know.
After completing more than 1 and a half year, let’s check is it a real hit or a terrible miss.
Startup India Campaign:-
It reported a large number of measures— simplified regulations, offering some handholding, a couple of tax cuts, and funds— to rev up the start-up motor and empower business enterprise, technological advance and development. A year down the line, be that as it may, there has been next to no progressive improvement. Just a modest bunch of new start-ups have become tied up with the arrangement, while the government is still attempting to get the stray pieces set up. Sadly, this was not out of the ordinary, given the underlying plan defects in the campaign.
The amount of money which grabbed every eyeball Rs 10,000 crore stash, supervised by the Small Industries Development Bank of India, or Sidbi, should put resources into funding (VC) reserves, which in turn would put resources into new start-ups. The issue isn’t inordinate printed material or formality. Truth be told, as Indian Angel Network executive Saurabh Srivastava brings up, Sidbi has distributed some cash efficiently. However, this sum hasn’t been pulled back.
This is on the grounds that the bank just puts in 15% of the aggregate corpus, while it is the VC that needs to convey the staying 85% to the table. What’s more, this year, VCs have attempted to collect that sort of cash—thus, financing has nearly divided, as per information investigation firm Tracxn Technologies.
The government has such complicated access to the program that new start-ups haven’t possessed the capacity to draw near. Investigate the numbers: The government got just around 1,368 applications; of these, alone 502 were perceived as new start-ups by the department of industrial policy and promotion. Also, a significantly littler subset—simply the 111 firms consolidated after April 1, 2016—were considered for tax breaks. At last, the advantages were conceded to just eight new start-ups. Furthermore, that is only one portion of the issue.
The other issue with the tax-exempt mainly is that it expects that new start-ups will be profitable and that too inside the initial three years. However, just a little level of new start-ups prevail at all and even less turn benefits so rapidly, making the tax holiday a redundant sop. This has been pointed out repeatedly to the government—which in turn has reacted by stretching out the duty occasion to five years.
The one part of the Startup India program that had potential was that of industry-the scholarly partnerships through new incubators that should have been set up across the nation. But the progress is sluggish. It was just a month ago that somewhere in the range of 17 built up incubators were chosen to get government financing to scale up operations. To be reasonable; these procedures do take some time yet it is critical to guarantee they stay on track and remain suitable. This isn’t reliant entirely on the legislature. While part of the absence high-level research work in the nation can be faulted for deficient government financing and random direction, the private area’s inability to advance up is additionally an issue.
In my view, Startup India campaign has been a terrible miss by Indian Government which somewhere shows the short-sightedness of decision making.