badge What does Startup India, Stand up India mean for Entrepreneurs? ~ Tech Siddhi

Monday 18 January 2016

What does Startup India, Stand up India mean for Entrepreneurs?

As you maybe aware recently Prime Minister of India, Mr. Narendra Modi announced Startup India Action Plan. The Startup India, Stand up India initiative was announced by Mr. Modi on 69th Independence Day i.e. 15th August, 2015 and exactly 5 months later we have complete action plan in front of us. Well that was pretty quick, at least looking at Indian government previous records and its impressive. The same was reflected when PM himself said, "If anyone asks what is the difference, the government working on a Saturday that too after 6 PM is the difference. 

The major points announced under the action plan includes, Compliance regime based on self certification where in startups will be allowed to self certify compliance with labour and compliance laws, Startup India hub a single point of contact for startups, Patent protection and IP rights will have transparent procedure for startups, relaxed norms for public procurement for startups, Funds of funds with a corpus of Rs 10,000 crore, Exemption from capital gains tax, announcement of Startup fests and many more. It was obvious for the entrepreneurs to pass comments on the initiative and we bring you compilation of these quotes form some budding entrepreneurs.

"Startup ecosystem is at a low with the numerous layoffs and unplanned hiring. Stability and long term planning will be a focus area for startups in 2016. The ecosystem will need to realign talent and work on attracting new talent. Support systems for startups and incubation will increase, average valuations seem set to increase but funding will be far more cautious then in the past year. Product based startups will show growth as will Logistics, utility services, lifestyle.   
Start ups will have to become more agile and nimbler with a sustainable revenue process. Government under the make in India and digital India initiatives will fuel growth for Indian startups. So far the Indian economy has witnessed phenomenal growth for the Indian technology startup ecosystem, driven by factors such as massive infused capital, acquisitions and consolidations, increasing Internet and smartphone penetration, and an ever growing domestic market will continue to infuse energy. B2B startups will show strength and numbers will increase in the coming year." - by Ms Ambika Sharma, Founder, Instappy, a startup launched in September, 2015

“The initiative launched by PM Modi today will surely set an enabling and conducive environment for startups in India. We are overwhelmed to have such support from the Government which will certainly make a big boom in the Indian startup ecosystem to fuel the economy and create new age jobs. The policies announced today at the program, open doors for massive opportunities, boost further investments and innovations. We look forward to implementation of Tax framework for startups and how regulations are reduced to help smoother operations." Prafulla Mathur, Founder and CEO, WudStay welcoming the Start-up India Initiative.

Mohit Mittal, founder and CEO of Voodoo has welcomed this delightful move by PM Modi of opening 7 research parks in different IITs with a 100 crore backing each. "Exposure to a facility like the research park facilitated many a budding entrepreneurs and friends with funding and guidance. Scaling it to seven other institutes would definitely help the budding startup enthusiasts right from their first day in college, and that's really paramount to their future success. One has to start early and fail early to really learn the intricacies of scaling a company, college students should welcome this move with open arms" added Mohit, who started up his first company in his college days at IIT Madras.

“Liberal economic policies relating to taxes and foreign investment proposals will redefine the dynamics of startup India. PM Modi’s initiative will not just ascertain stability but also long term planning for sustainable startup India this year and beyond. We at Shoogloo believe in delivering pure performance and see the same being initiated by our PM for the nation.” Mr. LD Sharma,Group Vice Chairman of Shoogloo,

“Indians everywhere perform well in businesses they engage, in the countries they inhabit. The primary differentiator between Indians abroad and Indians in India has been the conducive local environment and ability to engage in business easily. To start a business in a day and close it in 90 days can make all the difference between an idea germinating and an idea dying. The ability to birth an idea, get protection, take flight and equally winding down quickly with no taxes, government interferences or credit risk issues, is an equalizer for Indian entrepreneurs with their foreign counterparts. The model favoured until now, of India entrepreneurs setting base in foreign capital and tax friendly jurisdictions including complex routing of capital even for start-ups through Mauritius and so on can now be avoided, saving significant administrative and decision making time for entrepreneurs.  
The easy tax regime and capital gains exemption mechanism will also allow investors to not be painfully overcautious around tax structures. This will also allow investors across the globe to access the Indian start –up markets easily for entry and exit, thus adding more boldness to all the players in this field for start-up stock.
Doing business reports of the World Bank for 2015 ranked India NO. 42 in terms for people accessing credit that showed how herculean it was for individuals or start-up entrepreneurs to access credit. The new action plan that eases the access to credit and provides for fund access can catch the eye of not only a technology oriented start-up but can also benefit a brick and mortar or ancillary manufacturer starting a new process or product with much needed access to credit capital.  
India is treading on par with US, China and Israel in the start-up ecosystem and this coming together of the various stakeholders has placed the Indian Govt. as the real unicorn and has added spunk to the help India race ahead with start -ups.” said Aarthi Sivanandh, Partner J. Sagar Associates(JSA).


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