India has become one of the most prolific startup ecosystems in the world. The deployment of innovation and entrepreneurship in designing the national economic strategy prompted the Government of India to launch the Startup India Action Plan in January 2016. It was a significant move to empower startups and establish a robust ecosystem of innovation and employment.
What is the Startup India Action Plan?
Startup India Action Plan. It is a scheme launched by the government to assist young entrepreneurs and create a culture of innovation. It will involve eradicating regulatory hurdles, easing legal procedures and offering financial and infrastructural assistance to startups. This plan is basically aimed at transforming India into a nation of creators of jobs and not seekers.
The action plan comprises a 19-point agenda designed to address core issues affecting Indian startups. These are funding, regulatory, infrastructure, mentorship and market access.
Important Features of the Startup India Action Plan
Easy starting of a business has been one of the most influential qualities of Startup India Action Plan. The new process allows startups to register with the help of a rather short mobile application or an online portal, and it saves much time and paper. This one window clearance gives impetus to efficiency and enables the entrepreneurs to concentrate more on innovations and scaling up, instead of facing administrative challenges.
The start-ups also enjoy three years of income tax exemptions in the first ten years. This assists startups to plough profits back into their companies and expand without being taxed during their formative years.
The government has also established a Fund of Funds for Startups (FFS) with a corpus of 10,000 crores to encourage a culture of innovation. This fund is being funded by SIDBI, which also manages this fund and targets providing equity funding to startups in the early and growth stages to attract more investors to the ecosystem.
Incubator and Research Parks Role
In the Startup India Action Plan, there is an absolute focus on establishing incubation centres and research parks. The facilities also offer technical assistance, office facilities, mentorship and networking. Even the educational institutions such as IITs and NITs have been brought on board in the establishment of incubation centres, as well as the creation of a linkage between academia and industry.
This supply of infrastructural support to startups guarantees ease of access to the resources by the startups to conceive, develop, and commercialise their products or services successfully.
Legal Service and Intellectual Property Support
Serving as an intellectual property is also an important element of startup success. With the Startup India initiative, the government provides accelerated patent checks and IPR security at low-cost services. The startups are eligible to get up to 80% rebate on the patent registration fees, and the government provides legal aid through the facilitators who are appointed by the government.
Such a step leads to more business people patenting and trademarking their inventions, protecting them as well as increasing their competitiveness in the market.
Public Procurement and Government Tenders
The other notable characteristic is the waiver of prior experience, as well as turnover in government procurement. It is now possible that startups compete equally with established companies by having an equal chance to get into the government tenders. This aids startups to ramp up quicker as they get access to bigger contracts and customers in the general sector.
Networking and Global Exposure
The Start-up India initiative has also played a key role in the organisation of Startup Fest and exchange programs. Such meetings provide an Indian businessman with a place to demonstrate their inventions, locate investors, and meet his/her international counterparts. It also allows the sharing of knowledge and collaboration beyond borders, which makes the Indian startups more competitive globally.
Effects of Startup India Action Plan
Before the launch of Startup India Action Plan, the entrepreneurial scenario in India was greatly altered. The scheme has seen thousands of startups register and include categories, like fintech, edtech, agritech, health tech, and deep tech.
The initiative has also been instrumental in employment, especially among young people in Tier 2 and Tier 3 cities. The action plan leads to a shared development in the country, offering a decentralisation of opportunities and promoting entrepreneurship, no longer only in urban centres.
In addition to that, the increase in venture capital investments and foreign interest in Indian ventures highlights the experience of this program in making India a world startup leader.
Conclusion
The Startup India action plan is not merely a set of action plans but a movement towards becoming a self-reliant and innovation-driven economy. Through its support in terms of funding, facilitation of compliance, access to markets, and encouragement of a culture of innovation, the government has made the startup environment very fertile.
With India poised to remain one of the world’s economic powerhouses, strengthening startups will continue to play a major role in the country’s growth. The Startup India Action Plan is a good example of implementing the country’s vision, utilising the potential of the future generation, pursuing innovation, and constructing a new future in entrepreneurship in India.
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