IS TRAILER OF MODI’S STARTUP ACTION PLAN GOING TO BE HITTTT??!

Teaser came last Independence Day and now Trailer has also been released out, almost a month ago. But, still the definition of buzzword ‘startup’ is not clear to many.

Now-a-days youth having an interest of establishing a conventional business model like manufacturing, trading or any other, poses itself as a startup guy. Just wait for the day when even a retail shop beginner will claim itself as a startup. Obviously this is not going to be a story and Action Plan clearly says that INR 10,000 crore funds are to be allocated for “Innovation Driven Enterprises”. This means that startup (and not traditional businesses) filling the gaps in India through innovative technology, Business Model and more importantly the MSME’s and Individuals who innovates new product or business model will be eligible for the fund.

 Also, government-associated innovation promotion scheme like Opportunities for Young Scientists (FAST TRACK Scheme), others under Department of Science and Technology and various Ministerial Incubators may come under the scheme.

Earlier INDIA INCLUSUVE INNOVATION FUND by NIC and Ministry of MSME tried to help but failed, in 2011.

Great news is that INR 100 crore is reserved to stimulate rural youth to start social entrepreneurship and INR 200 crores for startups by schedules castes and tribes.

But, Questions to ponder upon are:

·         Does COMPLIANCE REGIME BASED ON SELF-CERTIFICATION makes it sure that, as 3 year period is crossed startup will not be under scrutiny By Government Inspector to re-evaluate its compliance of 9 labor and environmental laws?

·         Is President of India going to ease Insolvency and Bankruptcy Bill, 2015 for faster and inexpensive startup exits?

·         Is “Tax exemption on Capital Gains” Investor friendly in long term?

·         Is Tax Exemption on PROFITS for three years going to encourage more startups as it takes almost 3-5 years for a startup to have profits on paper?( Some still not making profits at their later stages of investment!!!!)

Or to say IS “Startup India: Standup India” going to be innovative in itself or just an aggregator of unique policies and regulations just like another aggregator startup in developing countries? Which came in a series to Karnataka Government efforts to sustain Bengaluru as The Startup Capital of India mainly in IT & ITES and recently launched T-HUB, India’s largest TECHNOLOGY Incubator (having tie-ups with 20 venture capitalists, University of Texas, MIT Media Lab, Incubio of Spain, IIIT-H, Indian School of Business, National Academy of Legal Studies and Research (NALSAR) National Laboratories of India).

Whatever be the scenario may be it is only passion and imagination that any kind of startup idea succeeds and disrupts old one. It does not matter what the century you live in or what government policies are or you are an early adopter; most of the major billion dollar startups came without the support of government since industrial revolution.

“The people who are crazy enough to think they can change the world are the ones who do.”
Walter Isaacson, Steve Jobs.

And recognizing some excerpts from the biography which states that: “You should never start a company with the goal of getting rich. Your goal should be making something you believe in and making a company that will last.”