START UP INDIA PLAN
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, ecommerce 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
Startup has been defined as an entity incorporated or registered in India not prior to five years, with 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 is having an innovative idea and is trying to bring up something new in the market.
KEY PONTS TO NOTE REGARDING STARTUP INDIA PLAN
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 startupindia.gov.in New category of white industries that can be exempted to follow environmental guidelines has been notified too. Mobile app and portal has been launched for facilitation of registration and other compliance procedure.
The plan proposed by 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 scheme is a bit complicated. The Government is not directly providing funds for startups. The fest and workshops is 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 plan.