Winds of change: Start-up India 2016
The Startup India policy aims to address two strategic concerns of the Government: the difficulty of doing business, which is driving successful start-ups out of India, and hurdles that dampen funding activity even as a compelling majority of start-up funding currently comes from foreign Private Equity and Venture Capitalist entities.
Start-ups in India have already altered the business landscape beyond recognition, both in economic terms as well as from a socio-psychological perspective. Home to more than 4,000 start-ups, India ranks third in the sheer number of businesses started. More than half of the funding that has come in over the last five years has come in the last year alone. Incubators and supportive ecosystems too have seen a surge in frequency and density. In addition, it is no more socially self-limiting to be called an entrepreneur. Innovation, in fact, is being rewarded by society with a new sense of pride.
Ventures like Flipkart, Freshdesk, Practo, and BankBazaar.com have leveraged on these phenomena to deliver real-world solutions to issues that Indian consumers were grappling with not too long ago.
Interestingly, but perhaps unsurprisingly, the mood and expectations of policy measures to be announced at the launch event matched the scale of the event itself. While the need for faster patent processes and start-up-friendly tax laws were a common refrain, there was also a palpable anticipation of the enablement of paperless financial services, which could truly democratize the access and consumption of such services.
The Action Plan unveiled by the Honourable Prime Minister of India covered a swathe of issues that had bogged down entrepreneurial activity of India. The Government’s intent to help startups and the Rs.10,000 crore fund earmarked for the purpose is great. However, execution on the ground would be key for it to succeed and show benefits. Support for intellectual property fast-tracking and 80% rebate on patent application fee is a good start but the important requirement is to clear up the patent applications backlog.
Savings on capital gains tax for all shareholders is a welcome move. The current proposal to waive capital gain tax if reinvested in the Government startup fund is a start, but reducing long-term capital gains tax in budget is the awaited for action.
Startups have changed the face of India through innovation, especially in the last five years, without any support from the government. They have done this with their passion and their ability to harness the great Indian talent. It’s great that the government is supporting the startup initiatives now. We look forward to seeing fantastic co-operation.
BankBazaar services are available through the web-portal, made-for-mobile web service or the BankBazaar app available on the Android play store and iOS app store. It helps consumers compare best offers across various banks and NBFCs. Apart from the above, it gives the consumer the latest news/ trends and insights into managing their finances better. The consumers can track their application and troubleshoot issues in the process through a host of channels like the BankBazaar app, WhatsApp, Email, Voice-support etc.