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