The eco system of START UP INDIA with it’s various benefits & schemes is gaining momentum. The Prime Minister Narendra Modiji’s initiative of ‘Startup India, Stand up India’ is of immense importance because for the first time of India’s economic history there is a dialogue between the startup community & the Government.
This entire drive is nurturing innovation and generating employment opportunities at large scale. It’s an important step by the Government to build an economically sustainable model for start up entrepreneurs.
This exercise if governed by three point action plan as follows:
- Simplification of Processes
- Funding & Incentives
- Opportunities for Partnerships & Incubations
Definition of a Start Up
It means:
- A legal entity incorporated/registered in India
- 5 or less than 5 years old
- Annual turnover has not exceeded 25 crores in any preceding financial year
- Businesses governed by innovative ideations, technological advancements, developments of products, services or intellectual property processes
To create a conducive and sustainable model for these start ups, the government notified further that such companies would require atleast 20% of equity funding. There the incubators companies, angel investors or private equities play a vital role. These support model companies have to be duly registered with the SEBI and are now endorsing these start ups.
These processes are governed by the Department of Industrial Policy and Promotion (DIPP) through Online & Offline modes
Government has announced a tax holiday & an inspector free regime for 3 years, capital gains tax exemption & INR 10,000 crore corpus for funding start ups. There are relaxations through self certification as regards nine labour laws & environmental laws. For the first three years of the launch there won’t be any inspections. Government further promotes Intellectual Property (IPs) awareness for safeguarding the star up ventures.
NRIs and Start Up India Initiative
Well! I consider the NRIs as the flagship bearers of growth and prosperity.
A recent UN report stated that India has the largest ‘diaspora’ residing abroad. Approximately 16 million Indian origins live abroad.
According to a recent World Bank report, India was the largest remittance-receiving country in the world. This amounts to 3.4% of India’s GDP. An amazing contribution by those 1 percent citizens who don’t even reside in India. It’s a fair share to build the nation’s wealth.
The NRI community further stimulates our economy by spending lavishly while they visit India, make donations as they are culturally bonded here. And now these NRIs, through the START UP INDIA movement are funding start ups as angel investors. They do bring domain expertise to these start ups.
A careful designing of polices, the Government can further harp the NRI talent and enormously increase the economics through the NRI community.
The Government should go a step further creating schemes which would be a win-win situation for NRIs and the Indian Start ups . A separate Department for NRI administration is the need of the hour. It further enhances & builds relationships between the government & the NRIs.
It’s the right time that the government leverages this strong bond with the NRIs for the betterment of the nation.
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