Introduction of Indian scheme, “startup India”

Startup India is a Scheme Is commencement by Government of India, deliberate to create a strong social and ecosystem that encourages them for the growth of startup business, entrepreneurship ,and to youth and entrepreneurs by supporting them with banking financial to increase the number Creative idea and also aimed of this startup India is to stand with sustainable economic and generate a large number of employment opportunities The Government through this initiative forcing to empower startups to grow through innovation and design. The campaign was first announced by y Hon’ble Indian Prime Minister, Narendra Modi during his 15 August 2015. Several events have been undertaken since the launch of the initiative on 16th January 2016 by Our Hon’ble Prime Minister.

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Implemented a very Dynamic sms vision of revolutionary India into a country of job creators instead of job seekers. This new thought and idea have started a culture of becoming entrepreneurs almost every field.it increases the anticipation among youths a chance to raise fund by Governments of India. This initiative has been planned to bring positive changes according to the need for development in the country. It will help our country to show the talent of youths through their innovative businesses all across the world. This initiative is the necessity to lead India in the right direction. The most important point about this campaign is that it involves youths of the country as start-ups as they have a fresh mind, innovative ideas, required strength, energy, skill, and new thinking to lead the business. Youths are the energetic and highly skilled section of society so they are a better target for this campaign. There is need to spread awareness about this program in all the institutions including Indian Institutes for Technology, central universities, Indian Institutes of Management, etc. so that they can be connected live through this scheme in future. According to this scheme, each of the bank branches will support at least one Dalit, Adivasi and women entrepreneur in order to easily encourage them. It will be proved very effective scheme in the development of India as it encourages and enables start-ups of the country who have a strong mind and innovative ideas (necessary to bring a nation on the new track). It will help in improving the status of small and new entrepreneurs as well as creating new job opportunities for others. PM Modi has requested to each bank to support at least one Dalit and one woman entrepreneur in opening their business. There is no lack of talented and skilled youths with innovative plans in India however they need some effective support to be encouraged and go ahead without fear of getting failed. All the IITs, central universities, IIMs, NITs and other institutions of India were live connected to each other for the successful launch of this campaign.

With Action Plan, the Government hopes to accelerate spreading of the Startup movement. The Action Plan is based on the following three pillars: Simplification and Hand holding, funding, Support and Incentives, Industry-Academia Partnership and Incubation. The Startups may self-certify compliance in respect of following 6 Labor Laws:

Other Constructions Workers’ (Regulation of Employment & Conditions of Service) Act, 1996

The Inter-State Migrant Workmen (Regulation of Employment & Conditions of Service) Act, 1979

The Payment of Gratuity Act, 1972

The Contract Labor (Regulation and Abolition) Act, 1970

The Employees’ Provident Funds and Miscellaneous Provisions Act, 1952

The Employees’ State Insurance Act, 1948

Around 4,400 technology startups exist in India and the number is expected to reach over 12,000 by 2020. India is also a third place behind US and Britain in terms of the number of startups. Furthermore, in line with its global counterparts, India has its own billion-dollar club to boast about. This includes startups like Flipkart, Snapdeal, Ola, InMobi, Hike, MuSigma, Paytm, Zomato, and Quikr. With the next $100 MN funding raise, fintech startup MobiKwik too looks to join the unicorn club.

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Soft bank, which is headquartered in Japan, has invested US$2 billion into Indian startups. The Japanese firm has pledged to invest US$10 billion. Google declared to launch a startup, based on the highest votes in which the top three startups will be allowed to join the next Google Launchpad Week, and the final winner could win an amount of US$100,000in Google cloud credits. Oracle on 12 February 2016 announced that it will establish nine incubation centres in Bengaluru, Chennai, Gurgaon, Hyderabad, Mumbai, Noida, Pune, Trivandrum and Vijayawada.

Some startup scheme by Government of India:

 Support for International Patent Protection in Electronic & Information Technology (SIP-EIT)

 Multiplier Grants Schemes (MGS)

 Software Technological Park Electronic Development Fund Policy.

Action Plan & Status Report

Start-up India is a flagship initiative of the Government of India, intended to build a strong eco-system for nurturing innovation and Start-ups in the country that will drive sustainable economic growth and generate large scale employment opportunities. The Government through this initiative aims to empower Start-ups to grow through innovation and design.

In order to meet the objectives of the initiative, Government of India announced the Action Plan that addresses all aspects of the Start-up ecosystem on 16th January 2016. With this Action Plan, the Government hopes to accelerate spreading of the Start-up movement. The Action Plan is based on the following three pillars:

Simplification and Hand holding
Funding Support and Incentives
Industry-Academia Partnership and Incubation

Some of some of the schemes have launched under Startup India:

Support for International Patent Protection in Electronics & Information Technology (SIP-EIT)
Multiplier Grants Scheme (MGS)
Software Technology Park (STP) Scheme
Electronic Development Fund (EDF) Policy
Modified Special Incentive Package Scheme (M-SIPS)
Scheme to Support IPR Awareness Seminars/Workshops in E&IT Sector
NewGen Innovation and Entrepreneurship Development Centre (NewGen IEDC)
The Venture Capital Assistance Scheme
Ministry Of Micro, Small and Medium Enterprises (MSME)
Credit Guarantee
Performance & Credit Rating Scheme
Raw Material Assistance
Revamped Scheme of Fund for Regeneration of Traditional Industries (SFURTI)
Single Point Registration Scheme (SPRS)
Scheme for promotion of innovation, entrepreneurship, and agro-industry
Infrastructure Development Scheme
MSME Market Development Assistance
National Awards (Individual MSEs)

And many more which is around 50.

Here we are discussing The Venture Capital Assistance Scheme:

Launched In: 2012

Headed By: Small Farmers’ Agri-Business Consortium (SFAC)

Industry Applicable: Agriculture

Eligibility: Assistance under this scheme by Indian government will be available to individuals, farmers, producer groups, partnership/proprietary firms, self-help groups, companies, agri-preneurs, units in agri-export zones, and agriculture graduates individually or in groups for setting up agri-business projects. For professional management and accountability, the groups have to preferably form into companies or producer companies under the relevant Act.

Overview: Venture Capital Assistance is financial support in the form of an interest-free loan provided by the SFAC to qualifying projects to meet the shortfall in capital requirements for implementation of the project. The Scheme was implemented during 2012-17 in the XII Plan. SFAC has formed tie-ups with 41 banks to provide financial support.

Fiscal Incentives: The quantum of SFAC Venture Capital Assistance will depend on the project cost and will be the lowest of the following:

> 26% of the promoter’s equity.

> INR 50 Lakhs

For projects located in North-Eastern Region, Hilly States (Uttarakhand, Himachal Pradesh, and Jammu & Kashmir) and in all cases in any part of the country where the project is promoted by a registered Farmer Producers Organization, the quantum of venture capital will be the lowest of the following:

> 40% of the promoter’s equity.

> INR 50 Lakhs

Time Period: This startup scheme is valid for the period between 2012-2017.