On Saturday 16 January 2016, Prime Minister Narendra Modi launched the Startup Action Plan to facilitate startups in India, announcing a string of allowances and schemes to encourage beginner enterprises and to provide a major boost to the India’s start-up world.
The Start-up India programme held at at Vigyan Bhavan in New Delhi was attended by hundreds of young startups entrepreneurs. Modi unveiled his government’s action plan to help and encourage them and also asked them to play a revolutionary role in nation’s development.
“Today’s gathering is not to tell us what to do. You have to tell us what the government should not do,”
“This start up movement is not merely guided by money or name and fame. The purpose is beyond that,”
“When we say Make in India we also say ‘Make for India.’ India is a great market,”
“Start-up does not only mean a company with billions of dollars of money and 2,000 employees. If it is able to provide employment to even five people, it would help in taking the country forward. Young people have to change their mindsets from being job seekers to try and become job creators. Once you become a job creator, you will realise that you are transforming lives,”
Here are the major features of the start-up action plan as announced by PM Narendra Modi:
- Self-certification compliance system was introduced which will allow start-ups self-certify compliance with labour and environment laws.
- Three Year income tax holiday will be provided to startups
- There will be no inspection for three years of start-up businesses in respect of labour, environment law compliance post self-certification
- 80 percent reduction in patent fee for start-up businesses
- Seven new research parks with an initial investment of Rs 100 crore each would be set up
- A dedicated fund with Rs 10,000 crore corpus will be created for funding of start-ups
- Capital gains tax to be exempted for venture capital investments
- Maximum of Rs 10 crore financial support to be given by central government to new incubators
- Launch of Atal Innovation Mission/Entrepreneurship promotion
Source : Business Standard