Startups drive the sustainable economic growth and generate large scale employment opportunities for a country. Startups are driven by technology and innovation and prove to be the most effective instrument for a countries transformation. Indian startup structure has created millions of jobs in the country and gets full support from the government.
In order to provide funding support to startups, government has set up funds with initial corpus of 2500 crore and total corpus of 10,000 crore over a period of 4 years, providing 2500 crore of investments per year. The fund will be in the nature of funds of funds, which means it will not directly invest into startups, but shall participate in the capital of SEI registered venture funds. Life Corporation of India is co-investing in the funds of funds initiative.
The government has decided that there should be no financial barrier coming in way of any great ideas and as a result the profits of startups initiatives are exempted from income tax. The tax on startups has been exempted for 3 years.
The introduction of 'Startup India', by the Department of Industrial Policy and Promotion aims at promoting startup in every sector of the society. The campaign wants to promote entrepreneurship among SCs/STs and the women community of the country. Prime Minister Modi's vision for 'Startup India' is to create startups in every corner of the country.
Since its launch, the government has taken various measures for the smooth run of the campaign. Single window clearance can be done for the companies with the help of mobile application; also there has been 80% reduction in the patent regulatory fee.
Ministry of Human Resource Development and Department of Science and Technology have agreed to partner in an initiative to set up over 75 such startup support hubs in premiere institutes like NITs and IITs.
The 'Startup India' campaign received investments worth $2 billion dollars from Japan's Softbank. The organization is pledged to invest $10 billion in the coming years. Oracle in 2016, announced to setup Incubation centers in Bangalore, Chennai, Gurgaon, Hyderabad, Mumbai, Noida, Pune, Trivandrum and Vijayawada. Google declared to launch a startup based on highest votes, in which the top 3 startups will be allowed to join the next google Launchpad week and the final winner could win $100,000 in Google cloud credits.
State governments have left no stone unturned in promoting the campaign. Kerala under the 'Kerala IT mission policy' will focus on fetching $740 million in investments for the state's startup ecosystem. Telangana has launched largest incubation center in India as 'T-Hub'. $15 million funds have been generated. Government of Madhya Pradesh has collaborated with the Small Industry Bank of India to create a fund of $30 million for the state bound startups.
With startups growing in every nook and corner of the country, India will witness millions of employment and skill training opportunities in the near future. With 'Make in India' in full swing, the startup culture will surely rise in India.
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