Off late, the government policies regarding start-ups have become friendlier. There is also great anticipation on the government support for the sector. The government has already set expectations from the entrepreneurial sector to drive big employment opportunities. Start-ups are expected to create 2,50,000 jobs in India by 2020, up from 80,000 now, according to a Nasscom report. This, in turn, can be achieved through big investments in start-up companies while nurturing innovation and bright ideas across sectors.
In the interim, let’s discuss in brief about the ‘Make in India’ thrust by the government and how it is set to benefit the start up sector. In a more contextual understanding, this development is targeting to include a list of sectors to boost production in India. Correspondingly, there are attempts to reduce red tape, enhance FDI limits and prune labour laws to ease the bureaucracy pressure in India.
10 direct benefits accrued on the start-up sector from ‘Make in India’ include:
- The initiative focuses on sectors like information technology, pharmaceutical, electronics, textiles. These sectors are globally competitive. These sectors also drive huge interest from entrepreneurs and is also attractive from FDI view point.
- The initiative also drives focus on protecting intellectual property rights. This bears a direct correlation with protecting the bright creations of young minds.
- Fostering innovation is the basic objective of the initiative. It aims to support new ideas which will also bring forth the young talent in India.
- The policy will also provide best infrastructure to support its “owned” creation. This will include building smart cities and beefing up the modern infrastructure.
- Building further capacity for innovation which includes new youth-focused programs and institutions dedicated to developing specialized skills.
- Ease of application processes such as integrating services of Central government departments and ministries with the eBiz, a single window IT platform for clearance of services.
- Filing of e-returns through a unified form, making use of digitisation to make things hassle free
- Strengthening Intellectual Property regime through upgradation of IT infrastructure in compliance with global standards.
- Relaxation on FDI caps will empower the entrepreneurs to deliver changes, and make an attitudinal shift towards entrepreneurship.
- Special polices for specific industries has also been considered by the government. As a result, area based incentives (SEZs), state based incentives, and export incentives (under foreign trade policy) are a part of the policy.
