Start-Up India - Key Points

Start-Up India is a flagship initiative of the Government of India, intended to build a strong eco-system for nurturing innovation and Startups in the country that will drive sustainable economic growth and generate large scale employment opportunities. The Government through this initiative aims to empower Startups to grow through innovation and design. In order to meet the objectives of the initiative, Government of India is announcing this Action Plan that addresses all aspects of the Startup ecosystem.

With this Action Plan the Government hopes to accelerate spreading of the Startup movement:

From digital / technology sector to a wide array of sectors including agriculture, manufacturing, social sector, healthcare, education, etc.and From existing tier 1 cities to tier 2 and tier 3 cities including semi-urban and rural areas.

The Action Plan is divided across the following areas:

• Simplification and Handholding
• Funding Support and Incentives
• Industry-Academia Partnership and Incubation

Key Features for Start-Up India

1. Compliance Regime based on Self-Certification
   To reduce the regulatory burden on Startups thereby allowing them to focus on their core business and keep compliance cost low.
2. Startup India Hub
   To create a single point of contact for the entire Startup ecosystem and enable knowledge exchange and access to funding.
3. Rolling-out of Mobile App and Portal
   To serve as the single platform for Startups for interacting with Government and Regulatory Institutions for all business needs and information exchange among various stakeholders.
4. Legal Support and Fast-tracking Patent Examination at Lower Costs
   To promote awareness and adoption of IPRs by Startups and facilitate them in protecting and commercializing the IPRs by providing access to high quality Intellectual Property services and resources, including fast-track examination of patent applications and rebate in fees.
5. Relaxed Norms of Public Procurement for Startups 
   To provide an equal platform to Startups (in the manufacturing sector) vis-à-vis the experienced entrepreneurs/ companies in public procurement.
6. Faster Exit for Startups
   To make it easier for Startups to wind up operations.
7. Providing Funding Support through a Fund of Funds with a Corpus of INR 10,000 crore
   To provide funding support for development and growth of innovation driven enterprises.
8. Credit Guarantee Fund for Startups
   To catalyse entrepreneurship by providing credit to innovators across all sections of society.
9. Tax Exemption on Capital Gains
   To promote investments into Startups by mobilizing the capital gains arising from sale of capital assets.
10. Tax Exemption to Startups for 3 years
    To promote the growth of Startups and address working capital requirements.
11. Tax Exemption on Investments above Fair Market Value
    To encourage seed-capital investment in Startups
12. Organizing Startup Fests for Showcasing Innovation and Providing a Collaboration Platform
    To galvanize the Startup ecosystem and to provide national and international visibility to the Startup ecosystem in India.
13. Launch of Atal Innovation Mission (AIM) with Self-Employment and Talent Utilization (SETU) Program
    To serve as a platform for promotion of world-class Innovation Hubs, Grand Challenges, Startup businesses and other self-employment activities, particularly in technology driven areas.
14. Harnessing Private Sector Expertise for Incubator Setup
    To ensure professional management of Government sponsored / funded incubators, Government will create a policy and framework for setting-up of incubators across the country in public private partnership.
15. Building Innovation Centres at National Institutes
    To propel successful innovation through augmentation of incubation and R&D efforts.
16. Setting up of 7 New Research Parks Modeled on the Research Park Setup at IIT Madras
    To propel successful innovation through incubation and joint R&D efforts between academia and industry.
17. Promoting Startups in the Biotechnology Sector
    To foster and facilitate bio-entrepreneurship
18. Launching of Innovation Focused Programs for Students
    To foster a culture of innovation in the field of Science and Technology amongst students.
19. Annual Incubator Grand Challenge
    To support creation of successful world class incubators in India

The above announcements made at the Startup India launch event are Governments understanding the needs of the startup ecosystem, however most of these pointers are still subjected to actually getting approved and realised for the benefits they are expected to deliver.