Startup India Policy

Government of India is coming up for Startup India Policy that will will unveil a blueprint for startups to ease the process of setting up new ventures. I have tried to explain it in bullet points for easy understanding.
  • It is expected to introduce Startups and Entrepreneurship Law
  • A new category of business for startups called "Innovative Startups" is identified  to distinguish them from micro, small, medium enterprises (MSME) and large enterprises.
  • The Government may take take a 25 per cent stake in startups through domestic venture capital (VC).
  • Venture Capital (VC) and Private Equity (PE) funds will do the due diligence, mentoring and refining of business ideas.
  • PE and VC funds could buy back the Government venture fund’s stake after two to three years.
  • Two issues to be addressed:
    • Over 65 per cent of successful start-ups re-locate out of India owing to the difficulty of doing business.
    • Over 90% of start-up funding presently comes from foreign VC and PE funds.
  • Tax breaks for private equity investors and incentives for incubators is proposed.
  • Startup India’ & ‘Stand up India is the mantra given by Prime Minister Narendra Modi.
Startup India policy would become a game-changer in making the ecosystem better for new startup ventures Shishir Gupta, CEO of Landtrust.in
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