Start-up In­dia Ac­tion Plan: Key Take­aways

The ac­tion plan falls un­der three dis­tinct cat­e­gories: sim­pli­fi­ca­tion of rules, fund­ing sup­port, and in­dus­try-academia part­ner­ship and in­cu­ba­tion

PCQuest - - CONTENTS - – Sid­harth Shekhar

I

n his op-ed on Middle East, ‘ Two states for two peo­ples’, Si­mon Peres, the then pres­i­dent of Is­rael high­lighted his na­tions’ cre­ative and in­no­va­tive prow­ess in sci­ence and tech­nol­ogy and how it trans­formed bar­ren deserts into flour­ish­ing fields and pi­o­neered new fron­tiers in var­i­ous fields.

To­day, Is­rael is known as the start-up na­tion of the world and a high per­cent­age of bud­getary al­lo­ca­tions are meant for R&D.

To bring In­dia at the fore­front of en­trepreneur­ship an­other brand-new pro­gram – Start-up In­dia – is straight out of Naren­dra Modi’s hat and in­cludes new poli­cies and ini­tia­tives that would make it eas­ier for in­vestors and start-up founders to in­cu­bate their ven­tures in the coun­try. So, the start-up ecosys­tem which wit­nessed a lot of ac­tion last year has re­ceived an­other “boost” from the Prime Min­is­ter.

Let’s have a look on the ma­jor an­nounce­ments made at the con­fer­ence:

10,000 crore Fund and Tax Ex­emp­tion for Three Years

Un­der this plan the govern­ment will set up a fund with an ini­tial cor­pus of ₹2,500 crore and a to­tal cor­pus of ₹10,000 crore over a pe­riod of four years, man­aged by a board with pri­vate pro­fes­sion­als drawn from in­dus­try bod­ies, academia, and suc­cess­ful start-ups. On top of this, the fund will par­tic­i­pate in the cap­i­tal of SEBI reg­is­tered ven­ture funds, and will in­vest in sec­tors such as man­u­fac­tur­ing, agri­cul­ture, health, and education.

A 20 per cent tax on cap­i­tal gains made on in­vest­ments by en­trepreneurs af­ter sell­ing own as­sets as well as govern­ment-rec­og­nized ven­ture cap­i­tal­ists will also be ex­empt to boost fi­nanc­ing.

- De­badutta Upad­haya, Co-Founder, Time­saverz “An en­cour­ag­ing ini­tia­tive...the busi­ness friendly tax en­vi­ron­ment for star­tups would be promis­ing for cre­at­ing an or­ga­nized mar­ket from a highly un­or­ga­nized one.”

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