Introduction
The Start-up India Initiative is a flagship program launched by the Government of India to promote and support start-ups across the country. Its main aim is to build a strong start-up ecosystem and encourage innovation, entrepreneurship, and job creation. Start-up India was launched by Prime Minister Narendra Modi on 16th January 2016. It provides various benefits, including financial support, easier regulations, and tax exemptions. One of the most important parts of this initiative is the 19-Point Action Plan, which outlines specific steps to help start-ups grow and succeed.
What is Start-up India Initiative?
Start-up India is a government initiative to support young entrepreneurs and make India a nation of job creators instead of job seekers. It helps start-ups with funding, legal support, mentoring, and easier rules for doing business. It is managed by the Department for Promotion of Industry and Internal Trade (DPIIT) under the Ministry of Commerce and Industry.
Main Objectives:
- Encourage innovation and entrepreneurship
- Make it easier to start and run a business
- Create more job opportunities
- Build a supportive ecosystem for start-ups
19-Point Action Plan of Start-up India
The government proposed 19 action points to support start-ups under different areas like funding, legal support, incubation, and promotion. Here is a simple explanation of all 19 points:
- Self-certification: Start-ups can self-certify their compliance with labour and environmental laws, which reduces inspections and paperwork.
- Startup India Hub: A central online platform where start-ups can get all information, guidance, and support.
- Mobile App and Website: A user-friendly app and website were created to help with registration, filing, and information access.
- Start-up Recognition: A simple process for getting start-up status through the DPIIT portal.
- Fast-track Patent Exam: Start-ups can get their patents examined faster and at a lower cost.
- Legal Support and IPR Services: Start-ups get 80% rebate on patent filing fees and access to legal support.
- Relaxed Norms for Public Procurement: Start-ups can apply for government tenders without needing experience or turnover criteria.
- Faster Exit for Start-ups: Special bankruptcy rules allow start-ups to wind up within 90 days.
- Funds of Funds: ₹10,000 crore fund managed by SIDBI to provide funding support to start-ups through venture capitalists.
- Credit Guarantee Scheme: Provides easier loans to start-ups with government guarantee.
- Tax Exemption for 3 Years: Start-ups are exempted from paying income tax for the first 3 years.
- Capital Gains Exemption: Exemption from tax on long-term capital gains if invested in certain start-up funds.
- Start-up Fests: National and international events to connect start-ups with investors and mentors.
- Incubators: Government supports setting up more incubators to provide space, training, and resources to start-ups.
- Innovation Centres: 500 tinkering labs and 31 innovation centres are being established in institutions.
- Research Parks: Seven new research parks modeled on IIT Madras are being developed to support research-based start-ups.
- Promoting Start-ups in Biotechnology: Dedicated programs and funds for biotech start-ups.
- Innovation Focused Programs for Students: Programs to promote entrepreneurship among school and college students.
- Annual Start-up Awards: Recognizing and rewarding the best start-ups in different sectors.
Conclusion
The Start-up India Initiative and its 19-Point Action Plan have played a significant role in transforming India into one of the world’s fastest-growing start-up ecosystems. By offering financial help, easing rules, and promoting innovation, this initiative encourages young people to start their businesses and create employment for others. It is a step towards building a self-reliant and innovative India.