The following article is based on my own interpretation of the said events. Any material borrowed from published and unpublished sources has been appropriately referenced. I will bear the sole responsibility for anything that is found to have been copied or misappropriated or misrepresented in the following post.
Prabhat Choudhary, MBA 2015-17, Vinod Gupta School of Management, IIT Kharagpur
Recently, Indian government launched Startup India Standup India campaign in order to create a new ecosystem for nurturing entrepreneurship and startups in India. Some of the few initiatives taken are tax exemption, 80% reduction in patent registration fee, new scheme to provide IPR protection and Rs 10,000 crore corpus fund to support startups. It is good to see government is not only targeting students from premier institutes like IIMs, IITs and NITs but also wants to ingrain entrepreneurial culture in young students by launching innovation programs for school students.
Success of Startup India Standup India campaign is very crucial for India. Its success will open doors for young talented entrepreneurs and will give them a chance to succeed. Its success will help to reduce unemployment and poverty in Indian society. But, there are many issues that government is yet to address. Its success will depend on how government will inspire youngsters to change their job oriented mind set towards entrepreneurship especially in premier institutes and how successfully can government rescue these youngsters in case of failure. Another area of concern is almost all the startups of India that have flourished into big enterprises like flipkart, snapdeal, ola etc is financially dependent on venture capitalist. This startup culture will not be feasible when there will be booming numbers of startups competing with each other. Government has to play a role of facilitator for investments for these budding startups. Another area of focus for government should be startups in different sectors. In current scenario, boom of startups in India is confined to technology and service sectors. There is an impending need of flourishing startups in manufacturing and agriculture industry. Another thing that government should consider is job security of employees working for these startups. Recently, many startups of Powai(Mumbai), India’s hot start up hub laid off their employees in large numbers in order to cope up with the volatile business environment. These uncertain job environment in startups can hamper startup culture in India to flourish.
We must be hopeful that government must address these issues and will do all the needful so that start up India Standup India become a very successful campaign and allow Indians to reap the fruits of real economic development.