Startup India

Startup India
Country India
Prime Minister Narendra Modi
Ministry Ministry of Commerce and Industry
Key people Arun Jaitley
Launched 16 January 2016 (2016-01-16)
Vigyan Bhavan, New Delhi
Website startupindia.gov.in
Status: Active

Startup India campaign is based on an action plan aimed at promoting bank financing for start-up ventures to boost entrepreneurship and encourage start ups with jobs creation. The campaign was first announced by Prime Minister Narendra Modi in his 15 August, address from the Red Fort.[1] It is focused on to restrict role of States in policy domain and to get rid of "license raj" and hindrances like in land permissions, foreign investment proposal, environmental clearances. It was organized by Department of Industrial Policy and Promotion (DIPP).[2] A startup is an entity that is headquartered in India which was opened less than five years ago and have an annual turnover less than ₹25 crore (US$3.7 million).[3] The government has already launched iMADE, an app development platform aimed at producing 1,000,000 apps and PMMY, the MUDRA Bank, a new institution set up for development and refinancing activities relating to micro units with a refinance Fund of ₹200 billion (US$3.0 billion).

The Standup India initiative is also aimed at promoting entrepreneurship among SCs/STs, women communities.[4][5]

Key points

Launch

The event was inaugurated on 16 January 2016 by the finance minister Arun Jaitley. Among the attendees were around 40 top CEOs and startup founders and investors from Silicon Valley as special guests including Masayoshi Son, CEO of SoftBank, Kunal Bahl, founder Snapdeal, Ola founder Bhavish Aggarwal, Paytm founder Vijay Shekhar Sharma, Travis Kalanick, founder of Uber, Adam Neumann, CEO of WeWork, Prateek Kr. Bhowmick, Co-founder of ReviewAdda, Sachin Bansal, founder of Flipkart and others.[7][8]

Govt.'s role

The Ministry of Human Resource Development and the Department of Science and Technology have agreed to partner in an initiative to set up over 75 such startup support hubs in the National Institutes of Technology (NITs), the Indian Institutes of Information Technology (IIITs), the Indian Institutes of Science Education and Research (IISERs) and National Institutes of Pharmaceutical Education and Research (NIPERs).[9]

The Reserve Bank of India said it will take steps to help improve the ‘ease of doing business’ in the country and contribute to an ecosystem that is conducive for the growth of start-up businesses.[10]

Investments

SoftBank, which is headquarterd in Japan, has invested US$2 billion into Indian startups. The Japanese firm had pledged the total investments at US$10 billion. Google declared to launch a startup, based on the highest votes in which the top three startups will be allowed to join the next Google Launchpad Week, and the final winner could win an amount of US$100,000 in Google cloud credits.[11] Oracle on 12 February 2016 announced to set up nine incubation centres in Bengaluru, Chennai, Gurgaon, Hyderabad, Mumbai, Noida, Pune, Trivandrum and Vijayawada.[12]

States Assessment

Southern States of the nation have shown great performance, like Karnataka, Kerala, Andhra Pradesh and Telangana which have results better than the rest of the country in terms of their policies implementations for supporting startups. Their focus has been on improving infrastructure, especially in the Tier-II cities. Bengaluru , a metro city of Karnataka, is known as the Silicon Valley of India. Kerala is well known for the government’s startup policy, "Kerala IT Mission", which focus on fetching ₹50 billion (US$740 million) in investments for the State’s startup ecosystem. It also made India’s first telecom incubator Startup village in 2012.[13] The state also matches the funding raised by its incubator from Central government with 1:1. Telangana has launched the largest incubation center in India as "T-Hub". Andhra Pradesh has allocated a 17,000-sq.ft. Technological Research and Innovation Park as a Research and Development laboratory. It has also created a fund called "Initial Innovation Fund" of ₹100 crore (US$15 million) for entrepreneurs.[14] The government of Madhya Pradesh has collaborated with the Small Industries Development Bank of India (SIDBI) to create a fund of ₹200 crore (US$30 million). Rajasthan has also launched "Start-up Oasis" scheme.[14]

Educational Institution Alliances

Under the scheme, a group of start-ups will acknowledge an MOU with the prestigious institutions and will also establish the start-up centers in the campus. NIT-Silchar (The National Institute of Technology, Silchar) is one of the institutions of the country to have joined the program.[15] IIT Madras is also linked with this campaign. The institution has been successfully managing seven research parks that has incubated many start-ups[16]

Criticism

The quality of education in the institutions of the nation is always questioned and found not matching with the organizations' standards for the required skillset and they have to expend on the training the freshers. The country has also launched the Skill India campaign for addressing the issue.[17]

See also

References

  1. ↑ "PM Modi in Mann Ki Baat: 'Start Up India, Stand Up India' action plan on January 16 - Times of India", The Times of India
  2. ↑ "Start-Up India plan on Jan 16: Modi on Mann ki Baat", The Indian Express, 2015-12-27
  3. ↑ "Start-Up India campaign: We are growing much faster, says Arun Jaitley : Delhi, News - India Today", indiatoday.intoday.in
  4. ↑ Cabinet clears Stand Up India scheme for women and SC/ST
  5. ↑ "What India's Narendra Modi Can Do for Indian Startups", Inc.com, 2015-09-25
  6. ↑ Key Points in Start Up India Scheme - PM Jan Dhan Yojana
  7. ↑ "Startup India action plan to provide final break from license raj: Arun Jaitley", The Economic Times
  8. ↑ "PM Narendra Modi to unveil startup action plan today as a major breakthrough for entrepreneurship in India - The Economic Times", The Economic Times
  9. ↑ "Start up India: This is the beginning of big bang start up boom in India, says Softbank CEO", The Hindu, 16 January 2016
  10. ↑ "RBI to create enabling framework for growth of start-ups". The Hindu. 2016-02-02. ISSN 0971-751X. Retrieved 2016-02-04.
  11. ↑ "Startup India event Live: Adventure, doing the impossible is all entreprenership, says Uber CEO Travis Kalanick", The Financial Express, 16 January 2016
  12. ↑ "After Digital India, Oracle seeks to participate in Make in India, Start-up India", Live Mint, 13 February 2016
  13. ↑ "Startup Mission to ink pact for innovation zone". The Hindu. 2016-01-03. ISSN 0971-751X.
  14. 1 2 PM Modi to launch 'Startup India' campaign today
  15. ↑ "NIT-Silchar joins Modi's Start-up India campaign - Times of India", The Times of India
  16. ↑ "With ‘start-up India’, research parks to bloom", The Hindu, 2015-10-23, ISSN 0971-751X
  17. ↑ "The problem with Indian education and how technology can help - Blog - Fluency", www.fluency.io
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