Modi Launches Yet Another Initiative, Will It Deliver

 “Government ‘did’ various things during last 70 years but we know where we have reached. It is now time for the government to decide about what not to do and just see where these people (Young Startups) can take our country”-this statement by Prime Minister Narendra Modi is the perfect essence of the current thought process of the government that seems quite decisive and full of conviction about pushing the growth engine of the Indian economy. For doing this government has put serious bet upon budding entrepreneurs and announced a historic initiative in the form of ‘Start-Up India Movement’ to put India’s entrepreneurs proves into top gear.

Earlier announced by PM in his August 15 speech, now government has come out with a vast blue print of growth and development of entrepreneurs that will provide great impetus to young entrepreneurs. While encouraging young guns to make most of their innovative ideas and skills, PM Modi said: “Successful start-ups are usually created by those who are driven by an idea, or an urge to solve a problem that people face. For them making money is not the primary objective, but is often a by-product and Start-up innovators are often driven by a sense of compassion for others.”

As far as this initiative goes, on paper this movement seems to be a decisive milestone in the journey of start-ups in India and can become an ultimate launch pad for the new budding entrepreneurs. Already global investors are quite bullish upon Indian and promised huge investment in the time to come. Soft Bank Chairman Masayoshi Son has already committed US $10 billion investment in India in next 10 years and also participated at the startup India launch function. Seemingly bullish Son said; “In next 10 years India could be bigger than China. I believe that twenty first century belongs to India and there are huge opportunities present in India.” “I truly think this is really the beginning of Big Bang for India,” he added.

Already India ranks third, only behind US and UK, in terms of startups with whooping 4200 startups and since 2010 over USD 18 billion has been invested into startups. Government has now put focus on nurturing startups. “In 18 months’ time, we will bring our patent pendency level at the same level as US and Japan,” informed Amitabh Kant, Secretary, department of investment policy and promotion. We have already hired 1000 examiners to examine those patents and the work has also been outsourced to IITs, ” he added.

This initiative has many historic firsts to its credit and will surely be able to boost entrepreneurship psychology in country’s youth and able to transform Indian industrial landscape. Not to be mentioned that presently just 9 startups have individual valuation of more than a billion dollar. Already Indian space is encouraging czars of global startups to make beeline towards Indian landscape. Uber cab services founder Travis Kalanick praised PM Modi’s initiative. Encouraging the Indian start-ups, he said; “You should have a champion’s mindset and put everything you have into it as with any less effort, you will fail.” It would now depend upon the real implementation of this initiative as that can only make India the real land of opportunity.

Biggest announcement came in the form of tax holiday for 3 years for startups and well received by a packed audience. To give huge respite to the new businesses, government has given an income tax waiver of 3 years so that they can retain profits and reinvest in their own venture. Also government is committed to provide hassle free environment to the startups and in line with this an App and portal would be launched in April which will make it possible to register a company in just one day. Officials claim that via this website all the clearances and approvals would be provided to start-ups and they can also apply for schemes under Start-up India Action plan. Also a fund of funds would in instituted with an initial corpus of Rs 2500 crore and that will be increased to Rs 10000 crore in a span of four years. It seems quite a good initiative but it would be interesting to show how it will fare in coming times to boost startups in India.