GS 3: Economy | Development and Employment
Why in News?
- Embassy of India in China in partnership with Startup India Association (SIA) and Venture Gurukool organized 2nd Startup India Investment Seminar in Beijing for fostering innovation and entrepreneurship among Indian youth.
- The event was planned to expose Chinese VCs and investors to the promising Indian startups
- Help Indian startups to reach out to the large Chinese investors for receiving investment for their companies.
- To discuss effective strategy for Chinese VCs to enter the Indian startup market and share their experiences about the Indian startup ecosystem.
Start Up India Scheme:
- It aims at fostering entrepreneurship and promoting innovation by creating an ecosystem that is conducive for growth of Start-ups.
- According to the scheme, an entity headquartered in India shall be considered as a Startup up to seven years from the date of its incorporation/ registration
- However, in the case of Startups in the Biotechnology sector, the period shall be up to ten years from the date of incorporation/ registration.
- Simple Compliance Regime for startups based on Self-certification
- Single window clearance based on mobile App.
- Startup India Hub to handhold startups during various phases of their development
- Legal support and fast-track patent examination by reducing 80% of the patent cost.
- Faster exit for startups through modified new bankruptcy code ensuring 90 days exit window.
- Credit Guarantee Fund for startups through Small Industries Development Bank of India (SIDBI).
- Providing funding support through a Fund of Funds with a corpus of Rupees 10,000 crore
- Tax exemption on capital gains invested in Fund of Funds.
- Tax exemption to startups for 3 years.
- Exemption from labour inspection for 3 years.
- Launch of innovation hub through Atal Innovation Mission (AIM) with Self –Employment and Talent Utilization (SETU) Program of NITI Aayog
- Harnessing private sector expertise for setting up incubators.
- No letter of recommendation from an incubator/industry association shall be required for either recognition or tax benefits.
- The initiative is also aimed at promoting entrepreneurship among SCs/STs, women communities.
- Rural India’s version of Startup India was named the DeenDayalUpadhyaySwaniyojanYojana.