Prime Minister Narendra Modi launched the ambitious ‘Startup India’ Movement to boost digital entrepreneurship at the grassroots level. He spelt out the various salient features of the action plan that was unveiled today.
In a major announcement, he said there will be income tax exemption to startups for the first three years. He also promised faster patent registrations and quicker exits for companies.
Norms will be relaxed for public procurement of startups, he added.
Shamit Khemka, Regional Director, Entrepreneurs Organisation, South Asia reacted to the unveiling of the startup policy.
“This is the first government to recognise the startup space in India in such a big and official manner. We thank and congratulate the government and the prime minister on this initiative. What Mr Modi rightly pointed was that entrepreneurs are scared of government interference, which will Change as there will be less interference and more support,” he said.
Startup India: HIGHLIGHTS
Event has ended.
8:00 pm: Zomato founder Deepinder Goyal tweets:
— Deepinder Goyal (@deepigoyal) January 16, 2016
Sean Blagsvedt, co-founder & CEO, Babajob.com, one of the invitees at the event said, “We are incredibly excited about the Startup India Action Plan announcement, which literally has dozens of policy innovations to foster more creative startups. At Babajob, we can’t wait to help connect India’s aspiring millions with jobs at the next generation of startups. I only wish the plan was in place when we started.”
7:38 pm: All of you have a vital role to play in the future of India, says PM Modi as he concludes his speech.
The following are some of the key announcements the PM made at the event:
7:36 pm: There will be national and int’l startup festivals to provide visibility: PM Modi
7:35 pm: Innovation core programs for students in 5 lakh schools. There will also be an annual incubator grand challenge to create world class incubators: PM Modi
7:35 pm: PPP model being considered for 35 new incubators; 31 innovation centres at national institutes and 7 research parks, 5 new bio-clusters: PM Modi
7:34 pm: No inspection for 3 years of start-up businesses in respect of labour, environment law compliance post self-certification: PM Modi
7:30 pm: We are starting the Atal Innovation Mission to give an impetus to innovation and encourage the talent among our people: PM Modi
7:27 pm: BIG NEWS! PM Modi announces income tax exemption to startups for three years.
7: 25 pm: There will be a tax exemption on capital gains for startups: PM Modi
7:25 pm: There will be credit guarantee fund for startups: PM Modi
7: 24 pm: A Fund of Funds will be created with an initial corpus of Rs 2,500 crore and later to Rs 10,000 crores: PM Modi
7: 22 pm: There will be an 80 per cent rebate in patent costs. We will also work for faster exits for startups: PM Modi
7: 21 pm: Norms will be relaxed for public procurement of startups. No requirement of turnover or experience but no relaxation of quality: PM Modi
7: 20 pm: There will be faster patent registration and protection for Intellectual Property rights. We are also introducing self-certification compliance by startups: PM Modi
7: 18 pm: A mobile app will be launched on April 1 through which startups can be registered in a day. There will also be a portal for clearances, approvals and registrations: PM Modi
7:15 pm: We want to focus on hand holding for startups, says PM Modi.
7:05 pm: Startups don’t have to be billion dollar ventures. Even if it employs five people, it is contributing to the Indian economy: PM
7:00 pm: This startup movement is not linked to money or name and fame. It is about finding solutions to the problems of common people: PM
6:57 pm: Solution to all problems are in an app. I also have an app – the Narendra Modi app: PM
6:56 pm: Startups are not just because of entrepreneurial capabilities, but also for the aspect of risk-taking: PM Modi
6:55 pm: Ideas are many, but some leave the idea halfway while others become very involved with the idea: PM Modi
6:51 pm: We are here so that you can tell us what we should not do: PM Modi tells the audience filled with entrepreneurs.
6:50 pm: Young people across the country have been watching this programme from the morning: PM Modi
6:48 pm: Today is a Saturday and considered a holiday for the government. And it’s beyond 6 pm. It’s unthinkable. But this is the change: PM Modi
6:45 pm: PM Modi has unveiled the action plan for startups in the country.
6:05 pm: The world today has changed. Startup India has marked an important changed in India’s mindset: Jaitley
6:03 pm: How many among the top 20 companies that existed before 1991 exist in the top 20 even today, asks Finance Minister Arun Jaitley.
6:01 pm: The PM will address the gathering soon. Top entrepreneurs and heads of startup companies are present at the event.
5:55 pm: I must say, it has been a fantastic day of exciting panel discussions: Commerce Minister Nirmala Sitharaman.
5:50 pm: The PM has arrived at the venue.
5:30 pm: Prime Minister Narendra Modi has reached Vigyan Bhawan, the venue of the launch of the ambitious ‘Startup India’ programme.
12.30 pm: Have already invested USD 2 billion in Indian firms; will scale up investment to USD 10 billion. India can be bigger in momentum than China in next 10 years; 21st century belongs to India: Softbank CEO Masayoshi Son.
12.00 pm: In sync with Prime Minister Narendra Modi’s Startup India initiative, Chief Minister Devendra Fadnavis today assured small business men and venture investors that he will take necessary steps to make Mumbai and Maharashtra the capital for startups.
“You have given me a mission. In the coming days, we will make Maharashtra and Mumbai, capital of startups,” Fadnavis said here while inaugurating a seed investment and innovation platform.
11.30 am: Nidhi Agarwal, CEO & Founder, KAARYAH.com: Startup India Standup India is a great opportunity for brand India to showcase how Indians are now graduating from being workers to creating employment, globally. The event will signal to the world that we are fast becoming a hotbed for innovation and entrepreneurship and promote both in turn.
11.00 am: India Electronics and Semiconductor Association (IESA), the premier trade body representing the Indian Electronic System Design and Manufacturing (ESDM) industry, has acknowledged and applauded the pro-startup initiatives undertaken by the Government of India.
“The much-awaited unveiling of Startup India by Prime Minister of India has brought lots of positively among the entrepreneurs in India. We are elated by the fact that India has the 3rd largest number of start-ups globally. IESA applauds the Govt. to be a facilitator to build the startup nation. With the Government’s support, a startup can be built in a day which will definitely motivate many young entrepreneurs to turn ideas into action thereby increasing the jobs in India as well. Amongst the many action plans discussed, I would like to share my views on the Legal support for filing patents at free of cost and 80% reduction in filing patent fee. This action would bring out the confidence among the entrepreneurs to startup with hassle free process. With faster patent registration and protection for Intellectual Property rights, every entrepreneur would be confident of not losing his or her ideas to any other. The action plan of a Corpus of 10 thousand crore made through a Fund of Funds is a major and important decision taken by the Government which would enable an entrepreneur to startup from the non-urban areas of India as well,” said Mr. MN Vidyashankar, President, IESA.
10.22 am: The rise of the IT sector is due to less government regulation, says Jaitley.
10.20 am: The banking system and the government will make the funds necessary available for a startup fund, says Jaitley.
10. 19 am: Successful entrepreneurs have come out of the MUDRA scheme, says Jaitley.
10.18 am: We came up with the MUDRA scheme to target the bottom 25%, says Arun Jaitley.
10.16 am: The private sectors expansion has caused stress on the banking system, says Arun Jaitley.
10. 16 am: We ostensibly broke away from “license raj” in 1991, conceived with idea that Govt will decide which businesses can run, says Jaitley.
10.15 am: When PM Modi was voted to power, if I look back at the changes and the direction we have moved in, some of them are extremely significant, says Jaitley.
10.14 am: Our effort over last few years was to restrict role of States in policy domain, say Jatiley.
10.13 am: Easier availability of capital and friendly tax regime will be the key features of Startup India Movement, says Arun Jaitley.
10.12 am: The government is now merely acting as a facilitator after PM Narendra Modi assumed office, says Arun Jaitley.
Finance Minister Arun Jaitley at opening session of Launch of ‘Start-up India’ movement pic.twitter.com/GMV5ph465X
— ANI (@ANI_news) January 16, 2016
9.30 am: stand by for live updates