Start-Up India has had a major impact on the spirit of entrepreneurship in India ever since it was launched in 2016. The Government of India launched this program to strengthen the ecosystem supporting innovation and startups. It aims at enabling sustained economic growth, and creating large-scale employment opportunities. The Start-Up India programme, its impacts, and examples are explored in this article.
Start-up India’s Key Features
Simple Processes
- Single-window ClearanceYou can easily register your company through mobile apps and websites.
- Self-CertificationThis program allows business to self-certify that they are in compliance with the nine laws governing labor and environment.
Finance Support and Incentives
- Fund of Funds: The government has earmarked ₹10,000 crores under a ‘Fund of Funds’ managed by SIDBI for startup funding.
- Tax ReliefTax exemptions on income for the initial three years as well as capital gains, investments over market value and other types of investment.
Industrial-Academia partnership and incubation
- Innovation HubsThe establishment of seven new Research Parks, modeled after the Research Park set up at IIT Madras.
- Incubators and acceleratorsThe creation of and improvement to incubation facilities is supported financially.
Start-up India’s Impact
Increase in the number of startups
India’s startup ecosystem has grown rapidly from its humble beginnings. India will have over 50,000 startup companies by 2023. Numerous unicorns are expected to contribute significantly to its economy.
Diverse Sectoral Growth
- Tech StartupsZomato, Paytm and Byju’s are examples of breakthroughs in the fields of food technology, fintech and education tech.
- Healthcare and BiotechnologyInnovative startups such as PharmEasy, Biocon and others are driving revolutionary changes.
Workforce Generation
According to the most recent reports, this boom in startup activity has resulted in a massive increase of jobs.
Indian startup examples that are successful
Flipkart
Flipkart was founded in 2007 by Binny and Sachin Bansal. It quickly became the leader of e-commerce in India. Walmart acquired Flipkart in 2018 – a successful exit within India’s startup ecosphere.
OYO Rooms
OYO Rooms, founded in 2013 by Ritesh Agarwal showed how the hospitality sector could benefit from aggregation. Now, it is a global brand that has a presence across several countries.
The Government’s Support goes Beyond Financial
- Patent Filing SupportPatent costs are rebated by 80% for new startups.
- Easy Winding Up of CompanyInsolvency standards allow for the closure of new businesses within 90 days.
Challenges Encountered
Even though startups have achieved success, they still face challenges such as attracting highly skilled workers, complying with regulatory requirements, and managing growth.
Start-Up India Initiative FAQ
Start-Up India is a new initiative.
Start-Up India (also known as Startup India) is the flagship initiative of India’s Government. It aims to develop a powerful ecosystem in India for fostering innovation and new startups.
How do I register my startup as part of the Start-Up India Initiative?
Start-ups can register on the Start-Up India site by filling out a form, and then submitting all the required documents.
What specific benefits are available to women business owners under the scheme?
The government has set aside certain schemes and incentives specifically for female-led businesses under this initiative.
What is the qualification criteria to be a ‘startup’ under the Start-Up India program?
For a company to qualify as a start-up, it must be less than 10 years old from its date of incorporation and have an annual turnover of INR 100 crores or below in the last three financial years.
What is an incubator in Start-Up India context?
Incubators are a great way to help budding entrepreneurs survive and thrive in the beginning stages of development.
The conclusion
Start-Up India is credited with creating an entrepreneurial ecosystem that has been thriving in India. Its focus on funding and partnership between industry and academia, as well as on simplifying the program, has helped turn new ideas for businesses into successful, tangible ventures that can compete on both national and international levels. This enriches Indian economic growth with new ideas, innovative technologies, and employment opportunities. It is crucial to address the new challenges as it develops in order to sustain its impact, and increase opportunities for India’s youth entrepreneurs.
