Professional Documents
Culture Documents
Start Up India Opportunities and Perform
Start Up India Opportunities and Perform
ABSTRACT: India is the second largest populous country in the world and it have more youth power than
other countries and at the same time it have more unemployment rate, its unemployment rate is 3.43% which is
huge when compared with its population. To control this unemployment our honourable Prime Minister
Narendra Modi has taken a step to eradicate unemployment, and initiated a campaign Start up India. This is an
action plan in this Banks will finance for start-up ventures. It is organised by Department of industrial policy
and promotion (DIPP). There are various schemes available under this and the person with innovative ideas,
will be benefited by this scheme. This creates an employment opportunity for many job seekers. Start-up India
is launched in the year 2016, and by 2025 unemployment rate will come down to half because this creates many
job opportunities. And this will improve our economic growth of our country. Many small and new
entrepreneurs will be benefitted by this. Soft bank which has a headquarters in Japan had invested 2 billion US
dollars for this. Our prime minister has requested all banks to support for this scheme. All the states in India
were performing well in supporting start-ups, southern states shown great performance than other states. This
paper highlights on the growth of tech based, non tech based, new business start-ups and number of days for
setting up a new business, corporate tax rate and bank lending rate for start-ups in India compared to other
countries. It also discusses about various schemes operating under Star-up India and their performance in the
economy.
KEY WORDS: Start-up India, employment opportunities, entrepreneurship schemes.
-------------------------------------------------------------------------------------------- -------------------------------------------
Date of Submission: 27-03-2020 Date of Acceptance: 15-04-2020
----------------------------------------------------------------------------------------------------------------------------- ----------
I. INTRODUCTION
According to DIPP Start-up is defined as,
“Start-up means an entity, incorporated or registered in India,
1. Not prior to seven years, however for Biotechnology Start-ups not prior to ten years,
2. With annual turnover not exceeding INR 25 crore in any preceding financial year, and
3. Working towards innovation, development or improvement of products or processes or services, or
if it is a scalable business model with a high potential of employment generation or wealth creation.
Provided that such entity is not formed by splitting up, or reconstruction, of a business already in
existence. Provided also that an entity shall cease to be a Start-up if its turnover for the previous financial years
has exceeded INR 25 crore or it has completed 7 years and for biotechnology Start-ups 10 years from the date
of incorporation/ registration.
Provided further that a Start-up shall be eligible for tax benefits only after it has obtained certification
from the Inter-Ministerial Board, setup for such purpose.Government and private companies are playing greater
role in funding the Start-ups. In recent years, India has paved its way to secure third position in the world in
terms of the number of start-ups founded. In the period 2005-15 the total venture investment in start-ups during
is estimated at 1117 billion (11,170,000,000 INR). Actual investment could be much higher since details of
investment amount are not available for many of the deals. The average annual growth rate in investment flow
during the period 2005-15 is about 42 percent. Between the years 2005-15, more than 10,000 start-ups have
received funding in India. The average annual growth in the number of start-ups that have been funded for the
period 2005-15 has been 16 percent. In most sectors, there has been an equivalent Indian start-up to that of a
foreign start-up. While many foreign start-ups have also started operations in India, the presence of an Indian
start-up meant that the Indian consumer need not have to wait till the foreign company started operations in
India. Indian Start-ups showed an good performance than the foreignStart-ups.
II. OBJECTIVES
To study about the Start-ups in India.
To ascertain the Impact of start-ups in India.
DOI: 10.9790/0837-2504032831 www.iosrjournals.org 28 |Page
Start-Up India- Opportunities and Performance in Indian Context
To identify the problems faced by Start-ups in India.
START-UP IN INDIA
Start-up India is a flagship initiative of the Government of India, intended to build a strong eco-system for
nurturing innovation and Start-ups in the country that will drive sustainable economic growth and generate large
scale employment opportunities.
The Government through this initiative aims to empower Start-ups to grow through innovation and design. To
meet the objectives of the initiative, on 16th January 2016, Government of India announced the Action Plan that
addresses all aspects of the Start-up ecosystem.
Funding support through Fund-of Funds with corpous of Rs. 10000 corer.
Entrepreneurs should register a company in one day, against 15-20 days as row.
No tax on Profit, inspection for 3 years
Capital Gain Tax exemption.
Credit Gurantee Scheme.
Easy & Faster Exit Policy.
No Capital Gain if money is invested in another start up.
Self certification based compliance for Labour & Environment laws.
Set up of start up India hub for clearance.
Mobile apps, portal for registration.
Holding with Govt acting as a friend and colleague.
Encourage start-ups in Government purchase.
Special Scheme for women entrepreneurs.
Support bio-technology start-ups.
Programme to encourage innovation among students in 5 lakhs Schools.
Building innovation centre at National Institutes.
Setting up Research park.
Exemption for
Start-ups)
Bank Lending rate 10.3% 5.6% 3.9% 5.4% 1.2% 3.3%
Source: World Bank, News articles, Gov. Sites
III. CONCLUSION
Many businesses start with a dream, but it takes more than just a dream for them to grow into
successful businesses lot of obstacles and many challengesare faced bystart-ups today. Start-ups take time,
effort, and energy to grow into profitable and sustainable businesses. Funding is a major concern for start-ups
and small businesses as availability of finance is a very crucial factor. In India southern part of the India has
more hub`s and they are performing well compared with northern side of India and overall the performance of
start-up is very good in Indian economy compared with other countries. Both government and private
organisations are supporting start-ups to grow which will reduce the unemployment rate in India.
REFERENCES
[1]. Desai Associates Nishith, Legal Tax Councelling Worldwide, April 2016, “Start-Ups: What you need to
know”
[2]. CMAI Roles in startup India.
[3]. Graham Paul, September 2012, Start up Equals Growth, in Grahams essays in Entrepreneurship
[4]. Au, K., & Kwan, H. K. (2009). Start-up capital and Chinese entrepreneurs: The role of family.
Entrepreneurship Theory and Practice, 33(4), 889-908
[5]. www.worldbankdatabank.org
[6]. http://www.iisermohali.ac.in/Start-upIndia_ActionPlan_16January2016.pdf
[7]. https://www.speakingwalls.in/blogs/speaking-walls/85632515-eight-challenges-faced-by-an-indian-start-
up
[8]. http://www.iamwire.com/2015/10/biggest-roadblocks-faced-start-ups-india/124312
[9]. http://indiatoday.intoday.in/education/story/start-up-india-stand-up-india/1/573128.html indiatoday.in
new delhi, 2016.
[10]. http://yourstory.com/2015/12/india-100-top-start-ups-2015/
[11]. startups.in/sights/on-getting-published/
[12]. http://www.indianstartups.com/
Dr.S.Pratibha. “Start-Up India- Opportunities and Performance in Indian Context.” IOSR Journal
of Humanities and Social Science (IOSR-JHSS), 25(3), 2020, pp. 28-31.