It was a huge deal. First time in India, the Prime Minister took the initiative to announce new and exclusive exemptions for India’s growing startup ecosystem. And why shouldn’t he? According to NASSCOM’s report, India stands at a whopping third place when it comes to the highest number of startups in the world. After the his stint in Silicon Valley, PM Modi grew even fonder of the idea of an independent India building strong, smart entrepreneurs. Love his governance or hate it, this is the sort of vision India needed in its Prime Minister.
The power pact day, 16th January, entailed 1500 eminent speakers, entrepreneurs, startups and government officials present at the event – by invite only. The day started off by addressing basic yet vital points – Why focus on the Indian startup system? How can we nurture innovation in India?
Followed by sessions in-conversation with the policy makers of the country, women entrepreneurs making their mark in the industry and eventually the announcement of the big action plan.
Felt like déjà vu when Modi ,yet again, emphasized on Setting up of a ₹10,000 crore fund for startups. 2 years ago, the finance minister announced the launch of India Aspiration Fund (IAF) but the financial plan is yet to be shared with the public.
Other points announced included – Lower government interference in business, a credit guarantee fund for startups and a Startup India Hub – a platform where investors and startups could meet.
While a startup India hub sounds exciting enough, my favourite announcement were the Tax exemption for 3 years and capital gains. But then I realized, not many startups would generate taxable income in the first three years! I still feel like the PM got a bit too ambitious when he mentioned the launch of a mobile app and website that would enable single point of registration for startups – all in a day. The same would be used for clearances, approvals and registrations. I’m all for this, but a government app that can smoothly perform these function would be a boon and almost sounds too good to be true, especially for startups that are just starting off.
Although the day was all about the action plan, the one-liners young entrepreneurs and seasoned investors threw at the crowd stole the show. Whether it be Softbank’s Founder, Masayoshi Son, “In 25-35 years, I have a feeling, this country will surpass all other countries in the world to become No. 1 (in GDP).” or the young 22-year-old starry-eyed entrepreneur Ritesh Agarwal, Founder and CEO, OYO Rooms “I dream of a country 15-20 years from now where there will be more self employed people than the number of people employed by other companies.”
What can the Startup Action Plan do for India in the coming decades?
More startups mean more solved pain-points of the common man. More consumer based companies mean happier customers. This might just be the formula to a more content India. India’s increasing internet penetration is proof enough that startups are here to stay. The PM’s Action Plan is the perfect catalyst to shaping his Digital India, our Digital India.