Startup India – Boosting Entrepreneurship in India | Success or Failure

PaGalGuY strictly believes in understanding a topic before the analysis of the same is done. Therefore, continuing on the same lines it is essential for a candidate to understand

  • What is a startup
  • What is Startup India campaign
  • What are the objectives of the Startup India campaign

It is required to know the objectives of any campaign to term it successful or failure, as the present conditions are to be compared with initially laid down objectives.

So what is a start up?

A startup is an entity that is

  • Headquartered in India
  • which was opened less than seven years ago and
  • Has an annual turnover less than ₹25 crore (US$3.9 million)

What is startup India Campaign?

The Government of India kicked off the Startup India initiative to energize and encourage entrepreneurship in India’s youth, which in spite of being talented and ready to bring up their own endeavors become subordinate upon different kinds of employment and stay underemployed.

By empowering new businesses, the nation can make an

  • Ever-increasing number of jobs with increasingly more pay,
  • Increasingly more discretionary cash flow.

The Startup India is an activity of the “Government of India” initiated in January 2016 by our honorable Prime Minister Shri Narendra Modi, to offer motivation to such dares that were ready to face the tougher tides for the betterment of the nation.

Under this activity, the administration has started the I-MADE program, to enable Indian business visionaries to construct one million versatile application new businesses.

The MUDRA Banks (Pradhan Mantri Mudra Yojana), an activity which aims

  • To give smaller-scale financial support,
  • Low-financing cost credits to business visionaries from low financial background

 Great business instruction is one that confers advancement aptitudes in an all-encompassing way.

Objectives of the Startup India initiative:

Now that we understand about the campaign, let us try to understand its objectives:

The principle goal of Startup India activity is to

  • Support enterprise building or entrepreneurship and
  • Create employment opportunities.

At the end, this activity is about the intensity of Entrepreneurship, how it can make loads of employments and how there is a need to urge our adolescents to make considerably more occupations.

Startup India is engaged to confine the job of States in the approach space. It proposes to annul the ‘License Raj’ alongside different impediments like inland authorizations, remote speculation proposition, ecological clearances among others.

The definition’s extension has been widened to incorporate versatility of plans of action with the capability of business age or riches creation moving in the direction of advancement, advancement or improvement of items or procedures or administration. The administration has likewise facilitated standards for getting pay tax cuts accessible under the Startup India program.

With the above vision, the government of India has confined the Startup India initiative into three pillars. These pillars are the action plan carved to ensure the objectives are met. They are:

  • Simplification and Hand Holding
  • Funding support and incentives
  • Industry – Academia partnership and incubation

Now that we are crystal clear about the Startup India initiative, let us focus on the strengths and challenges for the implementation of the initiative. Also analyze the successes and failures in the meantime.

Success of the initiative:

  • The campaign had urged business people to thought of their startup plans. As a result, today, India positions third all-inclusive in the startup business with 4200 enlisted new businesses.
  • The government has set up new incubation centres across the nation, over on the open private organization mode. According to the NITI Aayog site, 17 set up brooding focuses have been shortlisted for scale-up help.
  • The Startup India center point has been operational from April first 2016 for any inquiries about acknowledgment as a ‘startup’, incubation centers, financing or profit tax reductions. The center point has dealt with around 25,000 questions from new businesses through phone, email and Twitter. This has helped to bring more confidence amongst the youth of the nation.
  • The ‘Reserve Bank of India’, has kept aside a reserve of INR 10,000 crore for new companies under SIDBI (Small Industries Development Bank of India) and this financial support has been a noteworthy fascination for new companies.

The designated stores also will put resources into SEBI-enrolled VC reserves which, thusly, will put resources into new businesses.

  • Nasscom has pushed to expel financing and tax collection imperatives identified with new businesses through bringing down of long haul capital additions charge rates for household speculators to 10%, on a standard with non-occupants.
  • The government has made exit simpler for a startup that is going to stop their organizations. The Insolvency and Bankruptcy Code, 2016 says that startup can shut everything down 90 days of filling in the application.
  • The GST Bill has enormously improved the development rate of new businesses in the nation. The new companies currently are scaling up as there are no unpredictable issues to manage.

Failure: Challenges and hurdles with Startup India campaign 

  • The Startup India initiative had gotten around 1368 applications by mid-December a year ago. The Department of Industry Policy and Promotion (DIPP) has just acknowledged 502 applications regarded them as ‘new companies’.

The postponement and absence of proficiency is reasons for the startup intend to flop now and again.

  • The worries of domestic, angel and VCs on capital investments remain to a great extent unaddressed.
  • As of July 2016, SIDBI had picked 8 funds to put resources into new businesses as characterized under the Startup India Action Plan. They reported to help new businesses with 428 crore rupees. In any case, no cash has achieved any of them and it creates the impression that huge numbers of them are attempting to fund-raise from the market in a compelled financing condition.
  • The aggregate sum of financing verified by Indian new businesses has additionally dropped by 47.7%.
  • The VC firms and angel investors, financial specialists are increasingly wary while contributing on Indian new companies. It is on the grounds that the conditions, the simplicity of capital stream and working together are not steady enough


  • As is the case of most of the present government’s reforms and initiatives, the lack of the implementation is evident again
  • The government seems to have forgotten that the societal aspects are also to be considered and the effort put by the youth does not help for long sustenance

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