Launched in 2016, the government of India’s flagship programme Start-up India has changed the Indian startup ecosystem positively. The scheme has entered its 9th year and has brought significant transformation. Today, from IIT graduates to general graduates or anyone with a business and innovative mindset takes the courage to start their entrepreneurship journey. Highlighting its importance, IAS officer Amitabh Kant said;
“If such an environment had existed during my time, I would have become a startup entrepreneur instead of appearing for the IAS exam’’
- Amitabh Kant, ex- IAS officer
This statement from an IAS officer who has served the country as CEO of NITI Aayog, Secretary of DPIIT (Department for Promotion of Industry and Internal Trade, earlier known as, Department of Industrial Policy and Promotion, DIPP), and other remarkable positions signifies the positive ecosystem Start-up India scheme helped in creating.
In this blog, we will delve deep and understand what changes Start-up India has brought to the country.
Significant Transformation in India’s Startup Ecosystem After Start-up India Program
Simplified Regulations and Compliance for Startup
From the beginning, the start-up India scheme introduced simplified rules and regulations for startups. IAS officer Ramesh Abhishek (joined the position after 1 and half months after the launch of startup action plan and was in charge of start-up India for over 3 years) along with other policy makers and notable officers, have helped design the flagship program in such a way that the regulations and compliance metricsare business-friendly.
Start-ups in Every States
The Start-up India scheme planted the seed of entrepreneurship in every state. From Karnataka, Kerala, Odisha, and Rajasthan to Andhra Pradesh, Bihar, Chhattisgarh, Madhya Pradesh and Telangana, every state has witnessed emerging startup and startup leaders. This wave of entrepreneurship can make every state self-reliant regarding employment generation. Pointing out the importance of startups in different states, Ex-IAS officer and retired DPIIT secretary, Ramesh Abhishek said;
“Startups are very important for the country as they create jobs and India resides in its states and start-ups with their innovative ideas will be able to solve social, agricultural and service sector problems of the country.”
- Ramesh Abhishek, Ex-IAS officer
Tax Benefits and Incentives for Business
Startups incorporated after April 1, 2016, can avail of a tax holiday for three consecutive years out of their first ten years of operation. Furthermore, they are exempted from tax on capital gains if the same is invested in a Fund of Funds recognized by the government. Notable critics, IAS officers, bureaucrats, and chief representatives believe these incentives have significantly improved the financial viability of startups in their early stages.
Women in Business
Start-up India scheme has pulled out the women from home and backed them like a support system to set up business. Today, there are 58,277 women-led startups as per the Start-up India 8-year factbook. Bringing women into business is one of the biggest achievements of the scheme. In 2019, DPIIT secretary and IAS officer, Ramesh Abhishek quoted;
‘We will ensure that at least one-third of beneficiaries of Start-up India are women. Also, other departments/states will be encouraged to do the same”
- Ramesh Abhishek, IAS officer (2019)
The constant dedication of Start-up India, IAS officers, and notable individuals made it in reality.
In-City Job Creation and Economic Growth
By supporting startups, the initiative helps in creating numerous employment opportunities. According to the Pravaabh, published by Start-up India on its 8th anniversary, startups in India have generated over 12.42 lakhs employment from 2016 to 2023. That ultimately boosted the economy. IAS officers such as Ramesh Abhishek, Anurag Jain, Guruprasad Mohapatra, and Rajesh Kumar Singh have highly contributed to making this initiative a success.
Increased Access to Funding
Access to capital is one of the biggest challenges faced by startups. Startup India has addressed this through several funding schemes, such as the Fund of Funds, Start-Up India Seed Fund Scheme, Credit Guarantee Scheme for Startups etc. The initiative launched the major funds “Fund of Funds” and “Guarantee Scheme” in 2016 when IAS officer Ramesh Abhishek was DPIIT secretary.
Boost in Startup Culture
Before the launch of Startup India, the Indian startup ecosystem was nascent and faced numerous challenges. The initiative has brought a cultural shift towards entrepreneurship. Today, starting a business is also seen as an option.
Challenges in Implementing the Start-up India Scheme
We must have to accept the fact that the reform in start-up India is not a one-day affair. It’s an effort of years. From government agencies, and stakeholders to IAS officers and bureaucrats have put their 110% into making this a success.
Even before the launch of start-up India, several challenges had been tackled.
Addressing the challenges of the start-up world, a notable IAS officer and the person who worked for Start-up India’s success from 2016 to 2019, Ramesh Abhishek said;
“If you see the ranking of states on the ease of doing business, the improvement in their business environment is much more dramatic”.
- Ramesh Abhishek, IAS officer, DPIIT Secretary (2018)
He further said in 2018 “The most important thing is that whatever reforms we carry out have to be felt by the people. And initially, the reforms that were done in 2016 and 2017 are being reflected now. And some of them were done in 2015 also”
The Ex IAS officer Ramesh Abhishek shared his journey with Start-up India in an exclusive interview with the Economic Express.
Talking about the strategy to face challenges, the IAS officer addressed the importance of constant communication and taking feedback. He highlighted how DIPP (now DPIIT), agencies and other departments concerned used to communicate the reforms to the stakeholders and seek their feedback. IAS officer Ramesh Abhishek said to the newspaper; “If it (any reform) is not working, what is the problem? Then we again corrected our reforms, online systems, rules or anything else. So, this continuous work is being done”.
Conclusion
The Startup India initiative has been proven a game-changer in the country’s entrepreneurial landscape. It nurtured innovative ideas, supported startups and generated employment. For the success of The flagship program, several officials, IAS officers, bureaucrats, investors, and CEOs contributed. Today, the Start-up India scheme is known across the globe and has given wings to over 1,40,000 startups.
