A Further Push for Indian Start-Ups...

Fri, 27 Nov Pre-Open

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Start-ups have acquired a fair share of Indian business in a short time. They have entered most sectors and are leaving no stone unturned to get ahead of their competitors. As this has become more evident, the government has now set its eyes on them. It is aiming to plug the gaps for start-ups. One such major push can come from PM Narendra Modi's 'Start-up India, Stand-up India' campaign. Yes, the government is working to come up with a new start-up policy. Going one step at a time, emphasis for now is placed on manufacturing and innovation in this space.

As an article in Livemint reports, the government is moving towards a new start-up policy that will focus on manufacturing, seek to promote innovation and offer tax incentives to small unlisted start-ups.

The core motive behind the initiative is to build a solid ecosystem for Indian start-ups. As is seen, the Indian start-up ecosystem has come into its own. It is driven by PE funding, consolidations and a budding domestic market. So, rather than merely offering incentives, the government has planned this move to take the Indian start-ups to the next level.

The policy will also throw light on compliance and exits and ease of doing business. The first in the process of this policy is the definition of a start-up. An inter-ministerial meeting is will be held on Thursday for the same. The definition will define the scope of who will come under the ambit of the policy.

At present, there are many concerns for start-ups. Some of them are stuck due to the absence of a proper regulation and a clear code of conduct. On the back of such issues, many domestic start-ups were seen inclined to choose places like Singapore and the US. Tracking this, the department of industrial policy and production (DIPP) has held several rounds of discussion to draw up a 40-point action plan that will be addressing the key concerns of start-up firms. It has furthermore spoken to several people from the emerging start-up ecosystem on what they wish to see in the policy.

In our view, a start-up policy may be a great aid in creating a favorable system for Indian start-ups. Such emphasis will hopefully make the entire process simpler and transparent. What it actually delivers, however, remains to be seen.

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