“While addressing the first conference of start-up entrepreneurs, Modi announced an action plan to boost ventures for entrepreneurs who have ideas and are seeking support. He emphasized that it will also generate employment and wealth.”
Here are the top highlights & takeaways from Modi’s speech.
- Compliance regime based on self certification: The primary objective of compliance regime is based on self certification, which is to reduce the regulatory burden on startups. This self-certification will apply to laws like payment of gratuity, employee’s provident fund, contract labor, water and pollution acts.
- Startup India hub: A startup India hub shall be created as a single point of contact for the entire startup system to encourage knowledge exchange and access to funding.
- Simplifying the startup process: A mobile has been launched on April 1st using which the startups could be registered in a day. The process is further simplified by just filling up a short form through the mobile app or uses the online portal.
- Patent protection: The Modi government is also working on a legal support for fast tracking patent examination and has also controlled the cost. This will promote awareness and adoption of Intellectuals Property Rights (IPRs) by startups and support them by helping in protecting and commercialization of IPRs.
- Funds of funds with a corpus of Rs. 10,000 crore: The Startup India action plan includes investment of government funds with an initial corpus of Rs. 2,500 and a total corpus of Rs. 10000 crore in coming four years. It is planned that the funds would be managed by private professionals drawn from the industry while LIC will be a co-investor in the corpus funds. The credit guarantee fund for startups will make sure standing guarantee against risks and at the same time the fund would help flow of venture debt from the banking system.
- Credit Guarantee Fund: A national Credit Guarantee Trust Company is being envisaged with a budgetary allocation of Rs. 500 crore per year for the next four years.
- Exemption from Capital Gains Tax: At present the investments by venture capital funds in startups are exempted for this law. Now, the same is being extended to investments made by incubators in startups.
- Tax Exemption for startups: Income tax exemption to startups announced for three years.
- Launch of Atal Innovation Mission: Atal Innovation Mission started to encourage the talent among the people by giving impetuous on innovation.
- Startup Fests: This will encourage innovation core programs for students in 5 lakh schools. There will also be an annual incubator grand challenge to create world class incubators.
- Setting up of 35 new incubators in institutions: PPP model being considered for 35 new incubators, 31 innovation centers at national institutes.
- Promote Entrepreneurship in biotechnology: The action for promoting entrepreneurship in biotechnology includes a five new bio clusters, 50 new bio incubators, 150 technology transfers offices and 20 bio connect offices will be established.
- Setting up of 7 new research parks: Government shall set up seven new research parks- with an initial investment of Rs. 100 crore each.
- Other key highlights were: Panel of facilitators to provide legal support and assist in filing of patent application. And also there will be 80% per cent rebate on filing patent applications by startups.
Here is the Prime Minister Modi’s speech at the launch of Startup India.