Start Up India Plan

The Startup India, Stand up India campaign is an initiative introduced on 15th August 2015, by Mr.Narendra Modi to encourage entrepreneurship and startups in India, by providing them with necessary exemptions and incentives. Prime Minister announced a 19-Point Action Plan, on 16th January 2016, to boost the Start up India, Stand up India campaign and provide a platform to encourage the growth of startups in India

According to a recent Economic Survey more than 19,000 technology-enabled startups, led by consumer Internet and financial services startups, the report said. "Indian startups raised $3.5 billion in funding in the first half of 2015, and the number of active investors in India increased from 220 in 2014 to 490 in 2015.  Also, e-commerce growth in 2015-16 is expected at 21.4%, to reach $17 billion. To further facilitate the young entrepreneurs keeping in view the potential they have, Modi Government launched Startup India Plan in January 2016.

Definition of Startup as per Plan

The startup has been defined as an entity incorporated or registered in India not prior to five years, with an annual turnover not exceeding INR 25 cr.  in any preceding financial year, working towards innovation, development, deployment or commercialization of new products, processes or services driven by technology or intellectual property.  Also, any business will only be considered a Startup if it aims to develop a new product, process, new design or improved version of product etc. Such innovation must also be recognized by incubator. So, basically, startup plan aims to promote those entities who are having an innovative idea and is trying to bring up something new in the market. 

StartupPicture Courtesy- E-commerce startup

Also, Read Startupindia: A Boon For Entrepreneurs

Key Points to note regarding start-up India plan

  • Self-regulatory norms for start-ups to release them from nuisances of labor and environmental laws.  The inspection will be conducted only after 3 years.  Also, the startup doesn't need to strictly follow water pollution and air pollution laws.
  • A startup India hub will be created as a single point of contact for the entire startup ecosystem to enable knowledge exchange and access to funding.
  • A mobile app and user-friendly portal will be launched to check the status of registration and other compliance regulations for start-ups.
  • The most important problem that startup face is funding. To facilitate this, Government will set up a fund with an initial corpus of INR 2,500 cr. and a total corpus of INR 10,000 cr. over a period 4 years (i.e. INR 2,500 cr. per 1 year). Also, funds will be ensured by providing credit guarantee fund for start-ups.
  • Capital gain tax exemption provided for all start-ups. Also, a startup is exempted from income tax for a period of 3 years.
  • Organize workshop and fest at a national level where budding entrepreneurs come and share their ideas with investors and incubators. Atal Innovation Mission started to give an impetus to innovation and encourage the talent among the people
  • Establishment of 7 new research parks with an investment of Rs.100 crore each.
  • Promotion of entrepreneurship in biotechnology by establishing 50 bio-incubators, 150 technology transfer offices and 20 bios connect offices.
  • Innovation core program for students in 5 lakh school.

Implementation so far

List of facilitators for patent and trademark, list of incubators, list of SEBI registered funds have been notified on the website of New category of white industries that can be exempted to follow environmental guidelines has been notified too. Mobile app and portal have been launched for facilitation of registration and other compliance procedure.

StartupPicture Courtsey-Funders and Founders

Visit Official Website of Start Up India Plan


The plan proposed by the government to facilitate startup in India is a comprehensive plan and has the potential to be successful if implemented properly. However, the funding system proposed by the scheme is a bit complicated. The Government is not directly providing funds for start-ups. The fest and workshops are already being organized by various institutes. What needs to be done is to understand the core problem faced by entrepreneurs. The corruption and anti- competitive practices prevailing in the Country needs to removed for effective implementation of a plan.

Also, Read 5 Things You Need To Know Before Incorporating A Company