How the government of India is creating an enabling ecosystem for startups in India
At the Startup India event in Delhi on Saturday, a panel of bureaucrats took center stage to explain to the entrepreneurs on what the government needs to do to ensure a positive environment for startups. Startups are expected to generate employment and propel India to the next stage of growth. However, an idea is not enough to build a successful enterprise. Starting up a business is equivalent to getting into a Chakravyuh, which involves policy regulations and rules, taxations and turnaround time for registration and more.
J.S. Deepak, Secretary, Department of Electronics and IT, said,
Though startups face difficulties in terms of compliance, taxation regulation with Digital India, as far as the Department of IT is concerned, there is a significant number of VC, funding, and mentorship to support the startups.”
On the same note, Tapan Ray, Secretary, Corporate Affairs, said, “We have to be very efficient for registering the company. We have to follow 39 rules before finalising the company. Now, we will come up with new initiatives that will take only 24 hours to finish the registration of a company.”
Union Minister for Micro, Small and Medium Enterprises (MSME) Kalraj Mishra had announced in August that his ministry has prepared industrial profile of 652 districts under the skill mapping project. These details according to Kalraj would help new entrepreneurs select the best location as per their business needs.
While advising the startups, Dr. Anup K. Pujari, Secretary, MSME, stated,
Unless you want to be miserable, no one can make you miserable. Articulate your problem first, you will automatically get an answer.”
To prevent startups from getting entangled into the strict listing norms, market regulator SEBI had announced in June last year to herald an e-IPO system to allow investors to bid online in the public offers, while the new age startups will get a separate platform to raise funds and list their shares with an easier set of regulations.
Under the new reforms for startups, SEBI will provide ‘Alternate Capital Raising Platform’, which allows such firms to raise funding from institutions and high net worth individuals from the capital market.
Sh. Prasant Saran, Member, SEBI, said, “We have a detailed object clauses for startups. SEBI is a platform supported by Private Equity funds.”
When an entrepreneur posed a question about escalating the mentorship of students in entrepreneurship, Ashutosh Sharma, Secretary, Science and Tech, stated,
Currently, 70 tech incubators are working with us. With their support, we want to go to schools, colleges, IITs, and more. We have launched high risk and high game scheme that allows to calculate whether the idea is good.”
Government of India is trying to pull out all the stops to create an enabling ecosystem for startups. At this moment it is important to spread awareness in every corner of the country of the favourable policies that are currently existing. As entrepreneurs in Tier II and III cities are still unaware of the platter government has prepared for them.
NOW WATCH: Modi's Startup India action plan summarised in under 3 minutes!