Startup India, Standup India: Entrepreneur Scheme by Mr. Narendra Modi

Startup India, Standup India:



The Startup India, Standup India scheme is launched by Prime minister Narendra Modi on Saturday 16th January 2015 at 6:00 PM (IST). This event took place at Vigyan Bhawan, New Delhi. The aim of Startup India, Standup India is to provide funds to all the small and large startup in India. On 2015 Indian Independence Day Narendra Modi said “Hindustan mein koi aisa zila na ho, aisa block na ho jahan koi startup na shuru ho”.




What is Startup India, Standup India?


Startup India, Standup India is organized by Department of Industrial Policy and Promotion (DIPP), with others key Indian startup ecosystem players. The advantage of key Indian startup ecosystem players is to encourage entrepreneurial spirit and create an atmosphere to promote inventions and Startups in India.

Mr. Narendra Modi said this in ‘Mann ki Baat’ ” My dear young friends, in my August 15 address from the Red Fort, I had made preliminary mention about ‘Start-up India, Stand-up India’. After that, this spread to all departments of the government. Can India be a start-up capital? Can the youth in states have opportunities in the form of start-ups, with innovations, whether it be manufacturing, service sector or agriculture? In everything, there should be freshness, new ways, new thinking. The world cannot move ahead without innovation”

The further he said “On January 16, the government of India will unveil the full action plan of ‘Start-up India, Stand-up India’. A structure will be presented before you. This programme will be connected to the country’s IITs, IIMs, central universities and NITs. Wherever there is youth, they will be linked through live connectivity,” The overall conclusion is that Prime Minister want to bank financing for startups and ventures to boost entrepreneurship and Job vacancies.

Startup India, Standup India is developed according to the needs of the country. If someone developed something to make a poor labour life comfortable, our Prime Minister will ask the bank to help such people.

“On August 15, I had made an initial mention of ‘Start-Up India Stand Up India’. After that, it has been discussed in all government departments. Can India become the start-up capital of the world? On January 16, the government will launch the full action plan of ‘Start-up India Stand Up India’. I will come before you to discuss this in detail and would welcome your suggestions. I would request the state governments as well to take this forward,” says the Modi.

According to him, “The initiative was not just about the IT or digital world, but an effort to assist people starting new business ventures, especially those that involved innovation”. Also, “A poor person somewhere uses manual labour to earn a living. Some other young individual may create something new and innovative that can make the work of the poor labourer slightly easier. I will say even this is a start-up. I will tell the banks to support such individuals. I will tell the individual that he must move the head. ‘Start-up India Stand Up India’ will bring a big opportunity for young people across the country, be in manufacturing, service sector or agriculture,”

The Prime Minister also mentioned that there was no lack of talent in youngsters of the country, and added that all IITs, IIMs, central universities, NITs and other institutions shall be kept in touch live to the launch event.

After four days of Modi’s Independence Day speech, our Finance Minister Arun Jaitley launched two funds by the Small Industries Development Bank of India (Sidbi):
  • India Aspiration Fund for start-ups with the LIC as partner and co-investor,
  • Sidbi Make in India Loan for Enterprises (SMILE) to give soft term loans and loans in the nature of quasi-equity to small enterprises.

According to the World Bank’s working Business Report 2016, India has achieved up to nine spots up then before in the starting a business category to 155 but has lost six spots in terms of facilities to reach and get loans to 42. This means that it has become more struggling to get credits in India, especially for start-ups and the medium and small scale industries. In the last radio programme for this year, Prime minister has also talked about progress on other schemes that are run by his government. He added that the Direct Benefits Transfer scheme was actually started by the previous government and had got a place in the Guinness Book of World Records for such a huge scheme. He also told that around 40,000 crores were deposited directly in the bank accounts of 15 crore beneficiaries of about 35 to 40 government programs.

Talking about the ‘Sugamya Bharat Abhiyan (Access India Campaign)’ for people with disabilities, Modi urged everyone to use the word ‘Divyang’ (people with a divine limb) instead of ‘vikalang’ (disabled) while referring to such people.

“Several words have been coined for such people, sometimes handicapped is used, sometimes disabled, sometimes specially abled. Words have their own importance. But all of us who have seen these people working and carrying on with their lives realise that if they are disabled with one limb they are also especially gifted with some other sense or limb. We often wonder how they are able to accomplish their tasks despite being disabled. They must be having some extra power. That is why I feel we should refer to them as ‘divyang’ (people with divine limbs). It seems they have one or more limbs that have divine powers, divine energy. I like this word a lot. I hope my countrymen would also make this word popular,” he said.

“We have just launched the ‘Sugamya Bharat Abhiyan (Accessible India Campaign). We aim to ensure that all infrastructure, physical and virtual, would be improved to make them more accessible for diving people. Schools, hospitals, government offices, bus stations, railway stations.. ramps, accessible parking, accessible lifts, development of Braille.. .there are so many things to be done. It would require innovation, technology, arrangements, sensitivity,” said Modi.

The Prime Minister also invited people to provide feedback through the ‘Narendra Modi app’, a remark that invited sarcastic comments from the Congress party.

Congress spokesperson Tom Vadakan said that app would hopefully help the Prime Minister address the concerns of the poor, unemployed and women. “He is a very busy man. He has to travel… so we are very happy that he has announced this app… now you have an app in place which can ensure that there is communication between him and the people of India,” said Vadakkan.

“The farmers can reach out to the Prime Minister directly to address their grievances, unemployment can be addressed through this app. If there is a disturbing situation, like a riot, or incidents of intolerance, one can seek the Prime Minister’s help directly,” he said.




Things Prime Minister Mr. Narendra Modi Spoke at Launching of Startup India Movement (Highlights of 16th January 2016 events):


Action Plan of Startup India Standup India:


1. Starting a Startup in 1 day on a Mobile App:

 

To serve as the single platform for information exchange and interacting with Government and Regulatory Institutions, a Mot>ile App shall be made available from April L 2016 This will ensure that Startup companies/ partnerships are registered in 1 day. Startups will also be able to file for various clearances/ approvals/registrations through the Mobile App and Portal.


2. Fast-track mechanism of Startup patent applications:

In order to allow Startups to realize the value of their IPRs at the earliest possible, patent applications of Startups shall be fast-tracked for examination and disposal


3. Panel of facilitators to provide legal support and assist in filing of patent applications:


Facilitators shall provide assistance to Startups in filling and disposal of patent applications related to patents, trademarks and designs under relevant Acts
Government shall bear entire fees of the facilitators for any number of patents, trademarks or designs that a Startup may file


4. 80% rebate on filing of portent applications by Startups:

To enable Startups to reduce costs in their crucial formative years. Startups shall face provided on 80% rebate in filing patents vis-a-vis other companies


5. Relaxed Norms of Public Procurement for Startups:

To provide an equal plot form to Startups vis-a-vis the experienced entrepreneurs/ companies in public procurement. Startups (in the manufacturing sector) shall be exempted from the criteria of “prior experience/ turnover” without any relaxation in quality standards or technical parameters


6. Faster Exits for Startups:

To make it easier for Startups to exit, provision for fast-tracking closure of businesses has been included in The Insolvency and Bankruptcy Bill, 2015

Startups with simple debt structures may be wound up within a period of 90 days from making of on application for winding up on a fast-track basis


7. Funding Support through Fund of Funds with a corpus of INR 10.000 crore:

To provide funding support for development and growth of innovation-driven enterprises. Government will set up a fund with an initial corpus of INR 2.500 crore and a total corpus of INR 10.000 crore over a period of 4 years


8. Credit Guarantee Fund for Startups:

To catalyze entrepreneurship through credit to innovators across oil sections of society. Credit guarantee mechanism through National Credit Guarantee Trust Company (NCGTC)/ SIDBI shall be rolled out with a budgetary Corpus of INR SOO crore per year for the next four years.


9. Tax Exemption on Capital Gains:

Exemption shall be given in case Capital Gains are invested in the funds of Funds recognized by the Government

In addition, existing capital gam tax exemption for investment in newly formed manufacturing MSMEs by individuals shall be extended to all Startups


10. Tax Exemption to Startups for 3 Years:

To promote the growth of Startups, profits of Startups, setup after April 1. 2016. shall be exempted from income-tax for a period of 3 years


11. Tax Exemption on Investments above Fair Market Value:

In line with the exemption available to venture capital funds to invest in Startups above Fair Market Value (FMV). investments made by incubators above FMV shall also be exempted


12. Launch of AtaI Innovation Mission (AIM) 1/2:
          
Entrepreneurship promotion
  1. Establishment of sector specific Incubators
  2. Establishment of 500 Tinkering labs with 3D printers in Universities across the country, including smaller cities
  3. Pre-incubation training to potential entrepreneurs
  4. Strengthening of existing incubation facilities
  5. Seed funding to high growth Startups



13. Launch of AtaI Innovation Mission (AIM) 2/2:

Innovation promotion

  1. Institution of Innovation Awards (3 pen state/UT) and 3 National level awards
  2. Providing support to State Innovation Councils for awareness creation and organizing state level workshop/conferences
  3. Launch of Grand Innovation Challenge Awards for finding low-cost solutions to Indio’s pressing and intractable problems


14. Setting up of 35 new incubators in institutions:

Funding support of 40% (subject to maximum of INR lO crore) shall be provided by Central Government for establishment of new incubators in existing institutions for which 40% funding by the respective State Government and 20% funding by the private sector has been committed


15. Annual Incubator Grand Challenge:

To support the creation of successful world class incubators in India. Gol shall identify and select 10 incubators who have the potential to become world class

These incubators would be given INR 10 crore each as financial assistance which may be used for ramping up the quality of service offerings




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