A start-up would now require only a certificate of recognition from the Department of Industrial Policy and Promotion (DIPP) and would not be required to be examined by the inter-ministerial board, as was being done earlier. This is one rapid change that we have brought in, she said here at the 'Start-up India States' Conference'.
Under the 'Start-up India' action plan, the government has announced three-year tax holiday and other benefits to these entrepreneurs. She also said that the ministry has lined up a series of meetings with different stakeholders, including investors to resolve start-up issues. She will also meet investors, industry and journalists soon.
Commenting on views of some critics about interference of government in implementing the action plan for start-ups, particularly on extending tax holiday, Sitharaman said the government is committed to facilitate young entrepreneurs.
Many questions are being raised about 'minimum government and maximum governance'. I want to ensure that the government is only facilitating you. As and when money has to be spent, it will have to be looked into. All of us are duty-bound to be accountable and transparent. Accountability and transparency warrants that if tax breaks have to be given, in cases when the government defers, postpones or foregoes, we have to have some kind of accountability system. Therefore, there has to be an inter-ministerial board
These proposals will be implemented in the current financial year itself, she added.
India is ranked third in the world, behind the US and the UK in terms of number of start-ups. Close to 4,400 technology start-ups exist in India and the number is expected to reach 12,000-plus by 2020, driven by a young and diverse entrepreneurial ecosystem, she said.
On the rate of success of start-ups, she said,
World-over, the success rate is not very high. But that is the nature of the business. Rate of success is beyond the government. What the government, however, can do is to give a chance to every idea to reach some stage and give facilitation and tax breaks, she said.
Every state is working for start-ups and it's not like these five states only are working, Sitharaman said.