PM Narendra Modi launched Start-up India initiative
As part of the initiative, a slew of financial, policy and regulatory measures were announced to give impetus to startup ecosystem in the country.
Prime Minister Narendra Modi on 16 January 2016 launched Start-up India initiative to augment startup ecosystem in the country. The initiative was launched in New Delhi.
On this occasion, the Prime Minister also unveiled Start-up India, Stand-up India Action Plan which contained a slew of financial, policy and regulatory measures aimed at giving impetus to innovation and entrepreneurship in the country.
Key features of Start-up India, Stand-up India Action Plan
• A separate fund will be created with 10000 crore rupees corpus for development and growth of innovation driven enterprises. It will be 2500 crore rupees a year for four years.
• The Atal Innovation Mission was announced with a focus on strengthening incubation facilities for startups. Under the mission, among other things, pre-incubation training will be offered to willing entrepreneurs.
• Under the mission, 35 new incubators, 7 new research parks, 31 innovation centres will be set up at the premier technology institutes under the public private partnership mode.
• 500 sector specific incubators, including 5 new Bio clusters will be established across the country.
• An innovation programme will be launched in 5 lakh schools across the country to nurture innovation among 10 lakh children.
• Profits of Start-up units will be made tax-free for 3 years and there will be a moratorium on labour inspections for the first 3 years of operations.
• Capital gains tax to be exempted for venture capital investments. However, the exemption will be applicable only when only when the proceeds are invested in another startup.
• New scheme will be launched to provide Intellectual Property Rights protection to start-ups and new firms.
• Liberalised Fast-track mechanism will be evolved to process startup patent applications under IPR protection with 80 percent reduction in registration fee.
• Self-certification based compliance regime will be followed in relation to labour and environmental laws.
• A new mobile app to enable start-ups to register themselves within a day and a portal to apply for clearances online will be operation from 1 April 2016.
• Easier exits for failed ventures with a provision for winding them up within 90 days under the Bankruptcy and Insolvency Bill, 2015.
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