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Will Startup India work smoothly towards success?

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Will Startup India work smoothly towards success?
posted Mar 13, 2018 by Abu Anam

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There are numerous challenges that would try to curb the initiative of the government down to nadir but the hope in PM’s efforts and envisioning of a better future is generating optimism in entrepreneurs across the country. It would be interesting to watch them strive with perseverance towards making this campaign a success story.


  1. Funding: What actually makes startups lag behind in the beginning is lack of funds. They begin with low investment due to which production slows down to minimal. Now that the government has announced a fund of Rs. 10,000 crore with an initial corpus of Rs. 2,500 crore, it should be a good news for startups to expand their venture towards productivity and reasonable investments in their respective fields. Manufacturing, agriculture, health and education sectors are going to benefit hugely from this. The government will also pick ten incubators based on their worth and grant them Rs. 10 crore each as financial help to further develop their infrastructure.

  2. Tax exemption: Taxation becomes a burden on startups striving to make profits. In the action plan for Startup India, they will receive exemption from tax for a period of three years which is more than enough for an initiative to prove its worth. The companies will be able to retain capital gains and utilize the same towards expansion and development of their ventures. This exempt will be subject to non-distribution of dividend by the startup.

  3. Relaxed norms: The norms of “prior experience/turnover” will be given a relaxation for these startups as long as they are capable of handling their own manufacturing and other requisites for their initiative. Too many norms for qualifying also made it difficult for wannabe entrepreneurs to get involved in opening a startup that would be registered by the government bodies and get exempt from PSUs.

  4. Ease of registration: There will be a single point registration facility for new enterprises joining the league. It will be made easier via a mobile app that will allow startups to get registered in a day. Other facilities like clearance, approval, and applying for registration will also work from the same portal. These companies will be able to self-certify compliance on nine labors and other environmental laws through the same app along with a relaxation from inspection for three years.

  5. Easing risk: Startups would be able to move out of the venture if they want to do so within a period of three months from the registration. There will be limited liability and the company will have the freedom of closing up within the aforementioned period if they feel that the initiative will not prove to be worthy of all the efforts to be made in future. Experimenting with knowledge is a good thing – at least you get to keep trying and not sit back and wait for an opportunity to present itself before you.


  1. Competing with Silicon Valley: Indian startups have for a long time waited for the government to recognize the caliber of new initiatives and to provide them assistance when needed but have been ignored for long. Now that the government is jumping between them, they must catch up carefully and not just try to compete with Silicon Valley since our business environment differs and the government has to cater to our respective needs instead of leading by example of Silicon Valley.

  2. Global arena: Since we are a late entry into the startup campaign and we are also trying to be in the global competition for startup development, India has to outdo the other countries that have been in the race for long. Brazil and many other countries have made huge investment for their startups to prosper. Chances are that we might fund them enough but not cater to their respective demands for growth that would let them wound up sooner or later.

  3. Recognizing our caliber: We need to work on our own key strengths instead of jumping into anything that could create profit. Manufacturing sector is not one of our strengths given that the global market for manufacturing is far ahead of us with their latest technologies and approach. Agriculture is our strength but we lack proper investment and distribution of funds for them. Heath and education needs to be augmented but at our own required level. New initiatives in these sectors won’t be much of a success unless we bring with them a change to look up to and appreciate – something that we have been lacking.

  4. Selecting the right candidate: There would be too many applicants in the race to get approval for government assistance but selecting the worthier of them is going to be a task of great difficulty. Funding the unworthy will only waste resources while the deserving will keep waiting to get an approval. The selection should be based solely on the merits of the entrepreneurs and not by what they show as their action plan. They should have experience, rationality, skills and efficacy to lead an enterprise.

answer Mar 14, 2018 by Shubham Rajput