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Blogs - Startup India Scheme – A Flagship Initiative for Entrepreneurs

Startup India Scheme – A Flagship Initiative for Entrepreneurs

Avatar for Aatmnirbhar Sena
Aatmnirbhar Sena
Nov 03, 2020
Central Govt. Schemes
Startup India Scheme – A Flagship Initiative for Entrepreneurs

Startup India Scheme is a drive by the Indian Government to create more employment opportunities and generate wealth, empowering the Indian economy. Startup India Scheme aims to generate more and more services and products to provide employment and decrease the unemployment rate and nurture the production, innovation, and startups in India. The Startup India scheme was introduced by Prime Minister Narendra Modi in 2016 to promote upcoming new startups in all business sectors. This scheme filled new emerging entrepreneurs with optimism as India’s Government helps them grow and promote their businesses. Startup India scheme will help new startups by providing them financial support and building the network in assisting in work.

The Course of Action for Startup India Scheme

The government is expecting to bring pace in boosting startup India scheme with a proper course of action. To complete the drive’s target, the Indian Government prepared the course of action to cover all the Startup environment facets that have been declared.

The Startup India project will cover a wide area of science and technology, agriculture, healthcare services, education, etc.

It also includes rural areas and semi-rural areas.

The Course of Action

Rendering and Handholding–

Consent from Authorities on Self-certification – Startups will be permitted to self-certify from consent (from Startup mobile application) with labor laws and environmental laws. There will be no probe for up to months in case of labor laws. All startups will be examined on getting credible and possible complaints of violation of laws, filed in written and consented by anyone of the senior-level officers. For environment laws, Startups that are under the “white category” (under CPCB) will be allowed to self-certify themselves, but random inspections will be done in all startups.

Startup India focal point – To build an environment where all information regarding startups can be accessed for a single point. 

Developing portal and mobile application – To build a hub of contact for complete information for startups to respond with Government and regulatory authorities to all business requirements and interchange of information about shareholders.

Fast track patent examination and legal support – In the Startup India Scheme government of India will provide the developer’s complete fees for the patents, designs, or trademarks that a startup wants to file; only the statutory fees have to be paid by the developer.

Easy norms for Startups – To promote startups, Government will exempt startups from the eligibility criteria of experience and turnovers, but not in quality and technical parameters. The startups also have to show practically how they are going to complete their project as per the requirements, and the startup should have there owned manufacturing area in India. 

Funding and incentives – Financial support form fund of funds with a corpus of Rs 10,000 crore. The Government of India will assist the startups financially. Indian Government is making a fund of Rs 2500 crore and a total corpus of Rs 10,000 crore in a period of 4 years. The nature of funds will be funds of funds, i.e., Government will not invest directly into Startups but will provide SEBI funds.

Credit Funds for Startups – Credit guarantee funds from National Credit Guarantee Trust Company (NCGTC)/ SIDBI is being intended with a budgetary Corpus of Rs 500 crore per year for the next four years.

Tax relief on capital gains – Person who has made generated captain gains in the year will be exempted from tax if the individual has spent money in capital gains in the fund of funds recognized by SIDBI.

Tax relief for three years – Revenue made by the startups will not need to pay income tax as they are exempted for three years.

Industry – Academia Collaboration and Cover

Organizing Startup fests –To make a positive and progressive startup environment in India. The central Government will organize fests to show innovations and products to boost new startups.

Introduction of Atal Innovation Mission – The mission will build sector-specific tinkering institutes to boost entrepreneurship, assist training, and funds for high-growth startups.
To maintain professionalism in startups, venture government will apply proper management rules and make policies for setting up institutes for training across India.

Innovation Institutes – To maintain proper research and development, Government will set up centers of innovation.

There are more than 50 schemes under the Startup India scheme which Government has launched from time to time. Some of the schemes are named under-

  • Software Technology Park (STP) Scheme
  • Modified Special Incentive Package Scheme
  • Credit guarantee scheme
  • Raw Material Assistance
  • Revamped Scheme of Fund for Regeneration of Traditional
  • Single Point Registration Scheme
  • Infrastructure Development Scheme
  • MSME Market Development Assistance

With Startup India Scheme, Government has encouraged new businesses to grow and emerge. With this, Aatmnirbhar Sena is ready to actively establish different types of enterprises and startups by assisting in making resources available. Aatmnirbhar Sena will encourage a self-reliant revolution in India by training new enterprises under demand-based training programs.

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