10 Key Takeaways from PM Modi’s Startup Action Plan

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The article has been contributed by our Guest Author, Sarmistha Mishra Ghosh.

Young entrepreneurs welcome Startup India action plan! 

If you weren’t happy with an ‘yesterday,’ its never too late to think over a startup again ‘today.’ The Startup India Campaign launched on January 16, is all set to empower countless ‘startup ventures’ and pave way for a resilient India in the making!

PM Narendra Modi announced the Startup India package at Vigyan Bhawan in Delhi to encourage country’s startup businesses. He revealed a string of measures, including three years of tax and compliance breaks aimed at curbing arduous government regulations and red tapism. Amidst applause and statements, he said, “People who have achieved success are not just entrepreneurs but also adventurous. Success of entrepreneurs depends on their ability to take risk.”

Top Indian and global startup founders who gathered for the launch of “Startup India, Standup India” initiative, to name a few, included Masayoshi Son, CEO, and Nikesh Arora, President and COO, SoftBank, Travis Kalanick, Founder, Uber, and Adam Nuemann, CEO, WeWork, Flipkart founder Sachin Bansal, Snapdeal’s Kunal Bahl, Ola founder Bhavish Aggarwal, Paytm founder Vijay Shekhar Sharma, ShopClues founder Radhika Agarwal, and Oyo Rooms’ Ritesh Agarwal.

10 Major Action Plan for Startup Growth in India

1.      No government compliance inspections for startups for first three years.

2.      Income tax exemption for the first three years effective from April, 2016.

3.      Capital gains exemption, if money reinvested in another startup.

4.      Creation of a dedicated fund with Rs.10,000 crores corpus to fund startups.

5.      Easy exit option, provided under the Bankruptcy Act so that startups can exit within 90 days.

6.      Self certification-based compliance for labour and environment laws.

7.      Mobile app and portal for startups promises quick and hassle-free registration.

8.      Single point Startup India hub for clearances.

9.      Encourage startups in government purchases, with relief in experience and turnover criteria.

10.  New Intellectual Property Rights protection for startups, 80% reduction in patent fee.

“The Finance Minister will do the rest, but since I have said all this in his presence, things should move,” PM said, reiterating the need to become a ‘job creator’ rather than being a ‘job seeker.’ He urged India’s youth to be a part of this initiative and also acknowledged the their vital role in shaping the future of India.

Though the announcements will definitely help improve the situation for startups in India, it wasn’t instantly clear how some measures such as three-year tax breaks could help rescue innovative ventures struggling for years to breathe success. On the whole, the initiative evoked remarkable response.

Author Bio

Sarmistha Mishra Ghosh

Editorial/Content Expert
 
She likes playing and experimenting with words, personally and professionally, and has over 6-7 years of comprehensive experience in the writing, editing, reviewing and copy writing domain. Traveling, reading and music keeps her alive!  Sarmistha is a Guest Author with Startup Simba and covers topics such as startups, success stories, entrepreneurship skills, young innovators etc.

 

 

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Anirban Guha
Anirban Guha
Founder & Editor Startup Simba

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