Modi gives Rs 10k-cr funds for start-ups

Modi gives Rs 10k-cr funds for start-ups

Modi gives Rs 10k-cr funds for start-ups
In a major step ahead of the Budget, Prime Minister Narendra Modi on Saturday announced a Rs 10,000 crore fund for start-ups and a slew of tax incentives as he promised to hand-hold all those who show the guts to make a beginning in India.

The tax breaks include a three-year income tax holiday, exemptions from capital gains tax if someone invested their own wealth to begin a start-up, 80 per cent reduction in patent fees and a Rs 500 crore credit guarantee fund.

“India, that is full of youth power needs a psychological change. The young in India need to come out of the job-seeker mentality to that of job provider,” the prime minister said, as he unveiled start-up India movement and launched an “Action Plan” in the national capital.

The programme was attended by more than 1,500 CEOs and founders of top start-ups from across the country. With 4,200 start-ups, India ranks third globally and with $18 billion pumped into Indian start-ups between 2010-15, $9 billion came in 2015 alone. Modi also asked young entrepreneurs to suggest ways for minimising government interference in start-up businesses.

“We have seen the governments do a lot for the past 70 years and we have also seen where we have reached, today I want you to tell me, what we (government) should not do, so that you (entrepreneurs) can move freely and reach a new height,” Modi said from a podium which read “We Unobstacle.”

Encouraging investors, the prime minister said that start-ups should not only be thought of as those high-fi businesses which use lakhs of rupees, complex technologies and apps but also those which are very basic and can create jobs for a few people.

“If someone starts an initiative which gives jobs to even five people, that initiative has the potential to take India forward,” the prime minister said, as he gave example of Indian handicraft sector with promising potential.

To promote the ease of doing business, he said there will be self-certification based compliance for start-ups, which will also include self-certified environment regulation.

No inspection

There will be no inspection of a start-up business for an initial three years.
Modi, however, said that the government will be vigilant about “zero defect” in the business model.

The prime minister said, his government will launch a mobile app from April 1 that will enable start-up to get clearances in one day. The government was also bringing a scheme to make filing of patents simpler.

“There is no exit plan for start-ups,” the prime minister said, adding that the central government was making faster exits for start-ups because “failures shouldn’t stop you forever. One who runs away from water cannot learn to swim. We are bringing a bill in Parliament to let start-ups exit in 90 days,” he said.