The 45 minutes speech of PM Sh. Narendra Modi has received support, energy and appreciation for the first time from the Country’s Entrepreneurial sector at the Start Up event held at the Vigyan Bhavan on 16th January,2016.
Among the biggest stars were Ritesh Aggarwal, 22-year-old founder of Oyo Rooms, Uber’s Kalanick (who was greeted on stage with thunderous applause) and Industrial policy and Promotion Secretary, Amitabh Kant who hailed as a Start-Up Evangelist. While everyone waited for the Action Plan, which was unveiled by PM Narendra Modi around 7pm, the first half belonged to Nine Top Secretaries, SEBI member Sh. Prashant Saran and SIDBI Managing Director Sh. K Shivaji, who had a rare question-and-answer session with the founders and the investors.
Here’s what changed for India’s startup ecosystem on 16th January 2016:-
- A 10,000 crore fund for Start Ups – This will not invest directly into startups but will participate in SEBI registered venture funds.
- A single point of registration for startups – The government will launch a mobile app and a portal on April 1st, 2016 which will enable startups to register their company in a day’s time.
- A simplified regulatory regime based on Self-Certification – No inspections will be conducted in case of the labor laws for a period of three years.
- A fast-track mechanism filing patent applications – The Central Government shall bear the cost of patents, trademarks and designs for a Start Up.
- A credit guarantee fund for Start Ups – A credit guarantee mechanism will help Start Ups raise debt funding through the formal banking system.
- Tax exemption for three years and capital gains – Aimed at facilitating growth and help retain capital, startups will be exempted from income-tax for a period of three years.
- A Startup India Hub for collaboration – The Startup India Hub will serve as a single point of contact for Start Up ecosystem players and will function in a hub.
- Relaxed norms of public-procurement – The Central Government, State Government and PSUs will exempt Start Ups in the manufacturing sector from the criteria of “prior experience/ turnover” as long as they have their own manufacturing facility in India.
- Faster exits for startups – Startups may be wound up within a period of 90 days from making of an application for winding up on a fast track basis, as per the recently tabled Insolvency and Bankruptcy Bill 2015.
- Atal Innovation Mission to encourage entrepreneurship and innovation – The Atal Innovation Mission will establish sector specific incubators and 500 ‘Tinkering Labs’ to promote entrepreneurship, provide pre-incubation training and a seed fund for high-growth startups.
- Innovation focused programs for students – An innovation core program targeted at school kids aims to source 10 lakh innovations from five lakh schools, out of which the best 100 would be shortlisted and showcased at an Annual Festival of Innovations, to be held in Rashtrapati Bhavan.
- An annual incubator grand challenge – The Government will identify and select ten incubators, evaluated on pre-defined Key Performance Indicators (KPIs) as having the the potential to become world class and give them Rs.10 crore each as financial assistance to ramp up their infrastructure.
The some of the quotes by the Indian ministers and regulators and also the entrepreneurs which made us convinced that now the government is also working for the Start Ups:
- “Indian Entrepreneurship is not juggad” – Nirmala Sitharaman
- “Will end Licence raj for startups” – Arun Jaitley
- “21st century belongs to India and Indian startups” – Masayoshi Son
- “We have to combine IP (Intellectual Property) and YP (Youth Property)” – Narendra Modi
- “When we started they asked us, has this been started in USA and China and we said NO” – Shashank ND
The major outcome of this conference was getting the definition of Start Ups in India accepted within the administration. And for the entrepreneurs now it is unstoppable as this Action Plan will only nudge them along faster.