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
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.”