Start-Up India

These are the key announcements made by PM Modi in the Start-Up India Action Plan.

A mobile app to be launched on April 1 making it possible to register startups in one day - ease the registration process which might have taken a longer time if we went the Companies Act way. Allows the Start-Up to straight away get down to business. Saves time, money and energy.

Compliance regime based on self-certification and no regulatory inspection for three years - this is a good move considering it would allow the Start-Up to lay a strong foundation for it's business without much disturbance from the government. Cuts down on bureaucracy.

Tax exemptions for three years -Since first  few years is the most crucial period for any business. This makes sure that the break-even point is reached as soon as possible. More income would be in the hands of the entrepreneur and he'll be able to really use it to recover his costs faster.

No capital gains tax if money is reinvested in a new start-up - would encourage the owners of the Start-Ups that have started making profit to take more risk and use their experience to multiply successful ventures. Ease the tax burden on successful ventures.

Patent fees slashed by 80% - promotes innovation as well as protects the interests of those innovators who otherwise might not have been able to patent their inventions due to monetory constraints.

Credit guaranteed funds for start-ups, Rs10000, incentives- all this would act as motivating factors for the entrepreneurs. It'll be easier for them garner funds for their Start-ups . 

Bankruptcy Bill - it would allow the Start- Ups to wind up more easily and faster (90 days) will probably remove the legal and bureaucratic hassles relating to winding up of Start-Ups. How they'll get the bill passed is another thing!

5 lakh schools and 10 lakh students to be involved in core innovation programmes. National and international startup festivals to provide visibility - this will inculcate the entrepreneurial spirit at early stages of a person's career, give the much needed exposure at student level only.

Atal Innovation Mission (AIM) for promotion of research and development including 500 tinkering labs, 35 public-private sector incubators, 31 innovation centres at national institutes, 7 new research parks, 5 new bio-clusters.

A Startup India hub - a single point of contact for interactions with the government - cuts down useless bureaucratic exercises. Will Allow easier access to government related schemes and benefits.

These are very bold steps taken by the Modi government and these were necessary too since 3/4 of all the start-ups fail. 

This'll encourage people with entrepreneurial spirit to take risks and provide some cushion in case they fail. So, if the government actually manages to implement these, it'll provide the much needed boost to the Start-Up culture in India. For now, these seem like broad guidelines only, with gaps to be filled along the way. I hope things will become clearer in the coming days. Implementation though, would be another ball game. So, My marks for the plan - 9/10.