Narendra Modi launched the ambitious ‘Startup India’ Movement to boost digital entrepreneurship at the grassroots level. He declared that there will be income tax exemption to startups for the first three years and also promised faster patent registrations and quicker exits for companies along norms will be relaxed for public procurement of startups. Shamit Khemka, the Regional Director, Entrepreneurs Organisation, South Asia said, “This is the first government to recognise the startup space in India in such a big and official manner. We thank and congratulate the government and the prime minister on this initiative. What Mr Modi rightly pointed was that entrepreneurs are scared of government interference, which will Change as there will be less interference and more support.”
Modi laid out certain key points like there will be national and int’l startup festivals to provide visibility, there would be innovation core programs for students in 5 lakh schools with an annual incubator grand challenge to create world class incubators. A PPP model is being considered for 35 new incubators; 31 innovation centers at national institutes and 7 research parks, 5 new bio-clusters. There would be income tax exemption to startups for three years, tax exemption on capital gains for startups and credit guarantee fund for startups.
As stated a Fund of Funds will be created with an initial corpus of Rs 2,500 crore and later to Rs 10,000 crores, norms will be relaxed for public procurement of startups and there would be no requirement of turnover or experience but no relaxation of quality. Provision for faster patent registration and protection for Intellectual Property rights was announced, also introducing self-certification compliance by startups. Some mobile app will be launched on April 1 through which startups can be registered in a day. There will also be a portal for clearances, approvals and registrations. This plan seeks a drastic rise of the IT sector with less interference and promises for a better future of the country.
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