Startup India is a Game Changer
This post is about the new game-changing initiative Start Up India that was launched by the central government yesterday. Here are a few important points of this initiative.
The Reasons for this Initiative :
1. While we did remove a lot of controls during the 1991 reforms. There are a lot of areas where people need a lot of permissions to start a business in India.
2. People who need to start a company need permissions and ought understand and abide by as many 22 laws.
3. Excessive controls and regulations are forcing companies out of India. Today some 65% of the startups founded by Indians are having their HQ’s Singapore.
4. More than 15% of the startups in the silicon valley belong to Indians.
PM Modi wants reverse the trend and make India the best place for the startups. Here is what he and his government promised yesterday.
Details of the Scheme/Initiative.
1. No New company is needed to pay taxes in the first 3 years of operations.
2. No Inspection by the government in the first 3 year period.
3. 80% waiver in the fee to patent.
4. The company can be established in a single day. The trouble of running around 20+ departments is reduced.
5. A mobile app to help these young entrepreneurs.
6. Corpus fund worth 10,000 Crores to aid the startups.
7. Even the new companies will be able to bid for Central and State government contracts.
8. A company can shut its shop in 90 days.
Why is this important and revolutionary?
1. We used to need at least 3-6 months to establish a company and begin operations in India. This initiative will cut the red tape down.
2. We are going through a start-up revolution in the country. Previously some 2% of the students used to start their firms. Now it has gone up to 10%. A 500% increase.
3. From 2010 -2015 we had 1,20,000 Crore rupees flowing into StartUps. Of these 60,000 crore rupees came only in the year of 2015. Can a start-up India initiative be more timely?
4. The Tarun Khanna commission (This was set up by Modi after assuming office to get an understanding of the troubles faced by startups in India and solutions to enhance the spirit of Startup’s in the country) has opined that an entrepreneur has to face obstacles five to six times tougher while starting a firm in India. The committee was speaking about the archaic labor laws, the red tape, the tough taxation rules etc that were troubling the budding entrepreneurs. By coming out with solutions to all of them the government has shown its seriousness for this mission.
We have about 4700 Startup companies in India. A rough estimate of their revenues is close to 7000 crores. The government’s vision is to have at least Rs. 33 lakh crores as the turnover of the Startup’s in India. The day it becomes a reality, lives of lakhs of families would be secured.
I wish that dream becomes a reality and Young India will lead the nation towards new heights of prosperity.
I drew my content heavily from Eenadu’s editorial. Here is the link for the same.