Highlights of Start-up India Action Plan
Prime Minister Narendra Modi announced the launch of Start-up India, Stand-up India initiative last year in the 69th Independence Day address. More recently, on January 16, PM Modi unveiled the action plan for this initiative urging the youth of the country to become job-creators instead of job-seekers.
The highlights of the Start-up India Action plan can be important for your upcoming competitive exams. Therefore, in today's article let us take a look at some of the key points of the Start -up India Action Plan.
Background:
On January 16, Prime Minster Modi unveiled a 19 point Start -up India Action Plan at Vigyan Bhawan in New Delhi, with the view to boost entrepreneurship at the grass-root level in India. As per data released by NASSCOM, 80,000 jobs had been created in the country by Start-up's last year alone and the number of investors too, doubled from 220 to 490. Taking a cue from these developments, the Start-up India Action Plan included creation of 100 billion rupee fund, tax breaks, and steps to enhance ease of doing business for companies and investors among other concessions.
Here's a list of 19 key points of the Start -up India Action Plan:
1. Start-up Fund: A dedicated start-up fund to promote start-ups would be established with an initial corpus of Rs. 2,500 crore and total corpus of Rs.10,000 crore over the four years. The fund would be managed by private professionals from the industry while LIC will be a co-investor in the fund.
2. Simplified process for Start-up: Start-ups will be able to set up by simply filling short forms though mobile app and online portal. The mobile app is to go live in April 2016, and act as a window for information exchange and interaction with government and regulatory bodies. It would help start a new company in a single day as all paperwork would be filed through the mobile app and portal.
3. Start-up Hub: A start-up India Hub will be created, which will serve as a single point of contact for the entire start-up ecosystem and facilitate access to funding and exchange of knowledge.
4.Compliance regime based on self certification: A self-certification based compliance system for start-ups would be introduced for 9 labour and environment laws. The objective is to reduce the regulatory burden on startups and would apply to laws like payment of gratuity, contract labour, employees provident fund, water and air pollution acts.
5.Credit Guarantee Fund: A credit guarantee mechanism through National Credit Guarantee Trust Company/SIDBI is being envisaged with a budgetary allocation of Rs 500 crore per year for the next four years to promote entrepreneurship.
6.Tax Exemption for Start-ups: No Income tax for the first three years for start-ups set up after April 1st, 2016.
7.Exemption from Capital Gains Tax: Start-ups would be taxed at a lower rate on long-term capital gains in unlisted entities.
8.Tax exemption on investments above Fair Market Value: Exemption would be available to venture capital funds to invest in start-ups above fair market value (FMV). It would also include investments made by incubators above FMV.
9. Fast track Patent protection application for start-ups: The Government will generate awareness regarding adoption of Intellectual Property Rights (IPRs) by startups and will help them protect and commercialise IPRs. Also, patent applications of start-ups will be fast tracked for examination and disposal.
10. Panel to aid in legal support and assist in filing patent application: A panel will aid start-ups with legal support and assistance in filing of patent application. Government appointed facilitators shall help start-ups in filing and disposal of patent application and the cost would be borne by the government.
11. 35 new incubators in institutions: A maximum, funding support of 40 % or Rs 10 crore would be given by the Central Government to develop new incubators in existing institutions. The rest 40% of funding would come from the respective state government and another 20% from private sector.
12. 7 new research parks: Modelled on the research parks in IIT- Madras, 7 such new parks would be set up. Of these parks, six in IITs, one in IISc with an initial investment of Rs 100 crore each. These research parks will enable companies with research focus on setting up base and leverage the expertise of academic/research institution.
13.Promote entrepreneurship in biotechnology: Five new bio clusters, 50 new bio incubators, 150 technology transfer offices and 20 bio connect offices will be established.
14. Innovation focused programmes for students: Innovation core program would be initiated to target school kids from five lakh schools. A Grand Challenge Program would be held to support and award Rs 10 lakhs to 20 student innovations from Innovation and Entrepreneurship Development Centres. With the view to promote innovation among students, Uchhattar Avishkar Yojana, has been earmarked with Rs 250 crore per annum aimed at fostering 'very high quality' research.
15. Atal Innovation Mission: The Mission is aimed at entrepreneurship promotion via:
* Establishment of sector specific incubators
* Establishment of 500 tinkering labs with 3D printers in universities
* Pre-incubation training to potential entrepreneurs
* Strengthening of existing incubation facilities
* Seed funding to high growth startups
16. Relaxed norms of public procurement for start-ups: With regards to public procurement start-ups (especially in the manufacturing sector) start-ups will get a level playing field with experienced companies.
17. 80 per cent rebate on filing patent applications by start-ups: With the view to enable start-ups to reduce costs in their formative years, start-ups would be provided with an 80% rebate in filing patents vis-a-vis other companies.
18. Start-up fest: Start-up fest will be organised with the view to showcase innovation and provide a platform for collaboration to start-ups.
19. Faster Exit for Start-ups: With the view to facilitate easy exit for start-ups, provisions for fast-tracking closure of businesses have been included in the insolvency and Bankruptcy Bill, 2015. Start-ups, who have simple debt structures, can be allowed to wind up within a period of 90 days after filing an application
At present, India has 4,200 start-ups and is ranked 3rd globally in terms of number of start-ups. The Start-up India initiative has been launched not just to ensure ease of doing business or to clear regulatory hurdles alone but also to act as a catalyst in the Indian start-up ecosystem and to promote cutting edge innovation in India.
Dear PaGaLGuY readers, current affairs forms an important component of several competitive exams such as the UPSC Civil Services Examination, SSC-CGL, Bank PO & PSU entrance tests, etc. New initiatives and socio-economic policies or what are known as flagship programmes announced by the Union government and State governments are often asked in competitive examinations. Therefore, understanding new initiatives, terms/concepts that make news is critical for aspirants.
To make your preparation easier and to help you score better in your exams, follow competitive exams related news and articles here:
Bank PO:FB: https://www.facebook.com/pagalguybankpo
Twitter: https://twitter.com/PaGaLGuYBankPO
SSC & Other Exams:FB: https://www.facebook.com/Pagalguy-SSC-CGL-Others-879667042056262/timeline/
Twitter: https://twitter.com/pagalguyssc
UPSC:Facebook: https://www.facebook.com/Pagalguy-UPSC-951926044840262/timeline/
Twitter: https://twitter.com/PaGaLGuYUPSC