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 Any material borrowed from published and unpublished sources has been appropriately referenced.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.
Sai Ravi Teja Pingali, MBA 2015-17, Vinod Gupta School of Management, IIT Kharagpur
In order to inculcate the spirit on entrepreneurship in India, the Government of India launched ‘Start-up India’ initiative on January 16, 2016. If successful, this initiative indeed would be a watershed in ushering the era of economic prosperity in India. The objective of this initiative is not just to create jobs for the youth but create an army of job creators through entrepreneurship.
The start-up India programme is different from erstwhile programmes in its very basic approach and objective. While the objective erstwhile programmes was to create employment opportunities for the youth of the country in different sectors, start-up India aspires to channel the energy of the youth in entrepreneurship which will create jobs. Thus the start-up initiative aspires to make the Indian youth not a job seeker but a job creator. If start-up India succeeds in what is expected from it, it would be a game changer for Indian economy.
However, the road for change is not very easy and there are many challenges. First of all, the basic objective of the start-up India initiative is to inculcate the spirit of entrepreneurship in common man. Like any other plan, this scheme also requires large scale people participation along with the supportive business policies. Historically, India was good at announcing the plans but poor at implementation level. If start-up India initiative fails at implementation level, it will have same fate as the erstwhile programmes.
Secondly, experts have criticised the income tax rebate for three years as it is very hard for a start-up to become profitable in three years. Thirdly, in order to get funding, unit had to avail a certificate from the Department of Industrial Policy and Promotion (DIPP) for innovation which is just an additional hurdle in receiving fund. Setting up of the corpus find of INR100 billion is also criticised as it will fund the private venture capitalists with tax payers’ money.