Wednesday, 30 September 2015

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. 

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