startup india

Startup India campaign is based on an action plan aimed at promoting bank financing for start-up ventures to boost entrepreneurship and encourage start ups with jobs creation. The campaign was first announced by Prime Minister Narendra Modi in his 15 August 2015 address from the Red Fort. It is focused on to restrict role of States in policy domain and to get rid of  “license raj” and hindrances like in land permissions, foreign investment proposal, environmental clearances. It was organized by Department of Industrial Policy and Promotion .

What is a Startup?

A start-up is an entity that is headquartered in India which was opened less than five years ago and has an annual turnover less than 25 crore (US$3.7 million). The government has already launched iMADE, an app development platform aimed at producing 1,000,000 apps and PMMY. The Standup India initiative is also aimed at promoting entrepreneurship among SCs/STs, women communities.

Key Points

  • 10,000 crore fund of funds
  • 80% reduction in patent registration fee
  • Modified and more friendly Bankruptcy Code to ensure 90-day exit windowstartup india
  • Freedom from mystifying inspections for 3 years
  • Freedom from Capital Gain Tax for 3 years
  • Freedom from tax in profits for 3 years
  • Eliminating red tape
  • Self-certification compliance
  • new schemes to provide IPR protection to start-ups and new firms
  • encourage entrepreneurship.
  • Stand India across the world as a start-up hub.

Action Plan

In order to meet the objectives of the initiative, Government of India announced an Action Plan that addresses all aspects of the Startup ecosystem. With this Action Plan, the Government hopes to accelerate spreading of the Startup movement from digital/ technology sector to a wide array of sectors including agriculture, manufacturing, social sector, healthcare, education, etc. and from existing tier 1 cities to tier 2 and tier 3 cities including semi-urban and rural areas.

startup indiaThe Action Plan is divided across the following areas:

  • Simplification and Handholding
  • Funding Support and Incentives
  • Industry-Academia Partnership and Incubation

Impacts and the Challenges of this mission

Impact of this policy in the long run:

  1. This policy will encourage entrepreneurship.
  2. It will create new employment opportunities for the unemployed.
  3. It will also promote entrepreneurship among SC/ST and Women Entrepreneurs.
  4. It is expected to benefit at least 2.5 lakh borrowers.
  5. It will restrict the role of state and facilitate ease of doing business.
  6. Boost GDP.
  7. It will increase the multiplier effect.

startup indiaChallenges to overcome

  1. Competing with Silicon Valley:Indian startups have for a long time waited for the government to recognize the calibre 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. Patent Pains: Globally, patents are seen as the bedrock for creating truly differentiated companies. In India it is a difficult, time-consuming and opaque process. And a very small percentage of Indian startups go this route. For one, there are very few, truly innovative technology based startups and two, the process is so bureaucratic and inefficient that it does not encourage more entrepreneurs to think about patenting and patent-able innovations at early stages.
  4. Early stage Capital: Access to early stage capital (and very late stage capital) are major issues. Apart from the unorganized route of angel funding or some seed funding, there aren’t enough channels which open up capital to new, young startups. Banks, for instance, have not participated in this market at all. There aren’t enough incubation cells and funding from different organizations directed towards improvement in certain areas. Startup ecosystem is a pyramid that should be very wide at the bottom and narrow at the top. The pyramid is not wide enough (not enough early stage startups that has access to capital) to create a powerful ecosystem yet.
  5. Business Adoption of Technology: The climate is not very conducive for true innovation in the B2B products context. Businesses at best want to see products that ape what’s already present in the US at a cheaper cost. Timely payments are an issue and clients are fickle.


This initiative is the necessity to lead India in right direction. The most important point about this campaign is that it involves youths of the country as start-ups as they have fresh mind, innovative ideas, required strength, energy, skill, and new thinking to lead business. Youths are the energetic and highly skilled section of the society so they are better target for this campaign.


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