Startup India is an initiative of the Government of India . The campaign was first announced by Indian Prime Minister, Narendra Modi during his 15 August 2015 address from the Red Fort, in New Delhi for generation of employment and wealth creation. The goal of Startup India is the development and innovation of products and services and increasing the employment rate in India
The action plan of this initiative is focusing on three areas:
- Simplification and Handholding.
- Funding Support and Incentives.
- Industry-Academia Partnership and Incubation.
Eligibility for Registration under Startup India Scheme
1.Firstly, the company to be formed must be a private limited company or a limited liability partnership.
2. Secondly, the firms should have obtained approval from the Department of Industrial Policy and promotion
3. Thirdly, it must have a recommendation letter by an incubation.
4. The firm must provide innovative schemes or products.
5. It should be a new firm or not older than five years.
6. The total turnover of the company should be not exceeding 25 crores.
7. Lastly, it should not be a result of splitting up, or reconstruction, of a business already in existence.
Benefits of Startup India
- Financial Benefits
- Income Tax Benefits
- Registration Benefits
- Government Tenders
- Huge Networking Opportunities
- Intellectual Property Rights (IPR) Benefits
- Relaxation in public procurements norms
- Self-Certification under Labour& Environment laws
- Fund of funds for startups
- Faster exit for startups
Challenges faced by Startup India
- People generally believe startups are just about thinking about a new idea or plan. But in reality, execution of such plan is more necessary than just thinking about it.
- The view or perspective of the government on startup India plan is quite short-term in nature. It does not look at the long-term path of the startups.
- For the success of any new business, competent workforce is necessary. But in case of startups, skilled workforce is not possible due to the lack of funds at the initial phase.
- The risk of reaching failure is greater in the startups as compared to other organizations. It is because they tend to take steps quite fast.