Startup India launched
Q. Recently the government launched ‘Startup India’ initiative. Which of the following statement/s is/are true regarding it?
1) Innovation hub under Atal Innovation Mission will be created
2) Startup will be started in one day.
3) Profits earned by start-ups will be exempt from payment of income tax during the first two years of business.
4) Easy exit option will be provided.- Published on 18 Jan 16a. 2, 3, 4
b. 1, 2, 3
c. 1, 2, 4
d. All of the above
ANSWER: 1, 2, 4
The Start Up India policy would attempt to address two key concerns the government wants to fix in India’s start-up ecosystem. Over 65 per cent of successful start-ups re-locate out of India owing to the difficulty of doing business, usually to Singapore. Secondly, 90 per cent of start-up funding presently comes from foreign VC and PE funds.
Major points in action plan of the Startup India initiative are –
- Profits earned by start-ups will be exempt from payment of income tax during the first three years of business. To boost financing, a 20% tax on capital gains made on investments by entrepreneurs after selling own assets as well as government-recognized venture capitalists will also be exempt.
- Credit guarantee fund for start-ups, tax incentives.
- Govt. to ensure 90-day window for start-ups to close businesses.
- India, which has the third-largest number of start-ups globally, will also support the ventures by removing the criteria of experience and turnover for bagging government procurement contracts.
- The Human Resource Development Ministry and the Department of Science and Technology have agreed to partner in an initiative to set up over 75 such startup support hubs in the National Institutes of Technology (NITs), the Indian Institutes of Information Technology (IIITs), the Indian Institutes of Science Education and Research (IISERs) and NIPERs or National Institutes of Pharmaceutical Education and Research.
- 80% reduction in patent registration fee
- No inspection for 3 years of start-up businesses in respect of labour, environment law compliance post self-certification
- Faster patent registration and protection for Intellectual Property rights. We are also introducing self-certification compliance by startups.
- Launch of Atal Innovation Mission (AIM) with Self-Employment and Talent Utilisation (SETU) Program
- Harnessing Private Sector Expertise for Incubator Setup
- Building Innovation Centres at National Institutes
- Setting up of 7 New Research Parks Modeled on the Research Park Setup at IIT Madras
- Promoting Startups in the Biotechnology Sector
- Launching Innovation Focused Programs for Students
