Start-Up India | Significance, Challenges, Solutions

• On the 69th India's Independence day, PM gave slogan to ecnourage entrepreneurship among the youth of India:

"Start-up India, Stand up India". 

• Modi is focussing on "Start-up India" programme 
• 2/3rd Jobs in USA come through Start-ups 
• SIGNIFICANCE:
• Social empowerment 
• SC/STs, tribals and women by building capacity.
• Jobs: 
• If unleashed, Indian start-ups will employ a majority of the 10 lakh youth that join the workforce every month. 
•  Start-ups will employ the next generation.
• Reap demographic dividend
• Sustainable inclusive development
• CHALLENGES:
• Simple, Clear taxation rules - preferable zero tax treaty
• Institutional
• Infrastructural
• Social
• Economic
• Political
• Geographical 
• Policy:
• most venture capital investments into India’s technology product industry are being routed through Mauritius or Singapore because of their favourable capital gains exemptions in the event of an investor exiting. 
• Labor reforms
• SOLUTIONS:
• Each of the 1.25 lakh bank branches should encourage at least one Dalit or tribal entrepreneur and at least one woman entrepreneur. 
•  Utilize it as an umbrella Mission: over schemes like MUDRA Scheme, Atal Innovation Mission (AIM), Self Employment & Talent Utilissation (SETU) taken up by NITI Aayog to support start-up ecosystem with technical,financial,advisory support.
•  PSL for first generation entrepreneurs
• Promote new sectors - Agriculture,food processing ,logistics,electronics sectors
• Have positive policies that nurture a start-up throughout its business life-cycle: 
• simplify company creation --> introduce a bankruptcy law --> streamline issues around exits and liquidity.