`100-bn fund, tax sops to boost Start-Up In­dia

RED CAR­PET Modi and Jait­ley prom­ise sev­eral en­tre­pre­neur-friendly mea­sures

Hindustan Times ST (Mumbai) - HT Navi Mumbai Live - - FRONT PAGE - HT Correspondent let­ters@hin­dus­tan­times.com

NEW DELHI: Prime Min­is­ter Modi an­nounced on Satur­day a string of ini­tia­tives to sup­port the coun­try’s start-ups, in­clud­ing three years of tax and com­pli­ance breaks aimed at cut­ting oner­ous govern­ment reg­u­la­tions and red tape.

Modi also re­it­er­ated plans to set up a Rs10,000 crore start-up fund, first an­nounced by fi­nance min­is­ter Arun Jait­ley in the in­terim bud­get of 2014-15. He also said start-ups would ben­e­fit from cheaper and faster pa­tent ap­pli­ca­tions, a cap­i­tal gains waiver if the money is rein­vested in a sim­i­lar ven­ture, as well as eas­ier exit for failed projects.

While the an­nounce­ments will likely help im­prove the en­vi­ron­ment for start-ups in In­dia, it wasn’t im­me­di­ately clear how mea­sures such as three-year tax breaks could help small-bore, in­no­va­tive ven­tures that strug­gle for years to break even.

Modi’s speech was made in the pres­ence of some of the big­gest names in In­dian and global star­tups who gath­ered in New Delhi for the launch of one of Modi’s flag­ship projects – “Start-up In­dia, Stand-up In­dia”. “Peo­ple who have achieved suc­cess are not just en­trepreneurs but also ad­ven­tur­ous. Suc­cess of en­trepreneurs de­pends on their abil­ity to take risk,” he said.

“That’s how [taxi ag­gre­ga­tor] Uber be­came [god of wealth] Ku­ber,” Modi said to peals of laugh­ter from the au­di­ence.

In­dia is home to the third-largest num­ber of tech­nol­ogy start-ups af­ter the United States and Bri­tain, and they at­tract bil­lions of dol­lars in fund­ing ev­ery year, de­spite crip­pling govern­ment regulation and red tape – a hur­dle Modi re­ferred to in his speech. “A lot can hap­pen if the govern­ment did not med­dle. We are here so that you can tell us what we should not do,” he said.

Modi said the govern­ment would make it eas­ier for founders to exit their com­pa­nies, re­spond­ing to con­cerns that though it is dif­fi­cult to start a com­pany in In­dia, it is al­most im­pos­si­ble to shut one down.

PM Naren­dra Modi on Satur­day. MOHD ZAKIR/HT

THE AC­TION PLAN

No tax on prof­its and no in­spec­tions for 3 years

Fund with Rs10,000 crore cor­pus

No cap­i­tal gains if money in­vested in an­other start-up

Easy exit pol­icy

Self cer­ti­fi­ca­tion-based com­pli­ance for labour and en­vi­ron­ment laws

Sin­gle-point Start-Up In­dia hub for clear­ances

Mo­bile app, por­tal for reg­is­tra­tions

Hand­hold­ing, with govern­ment act­ing as a friend and col­league

New in­tel­lec­tual prop­erty rights

HERE’S WHAT START-UP BUSI­NESSES CAN LOOK FOR­WARD TO pro­tec­tion, 80% re­duc­tion in pa­tent fee

En­cour­age start-ups in govt pur­chases, with re­lief in ex­pe­ri­ence and turnover cri­te­ria

Credit guar­an­tee scheme

Spe­cial scheme for women en­trepreneurs

En­cour­age­ment for

in­cu­ba­tion cen­tres

Sup­port to biotech­nol­ogy start-ups

Pro­gramme to en­cour­age in­no­va­tion among stu­dents in 500,000 schools.

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