The government will also create the Start Up India hub, a one-stop-shop for government relations.
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Mr Modi said those who try to set up new businesses can also fail and that the government would provide them an option for easy exit under the proposed bankruptcy law.
Modi also announced profits from start-ups will be exempted from income tax for three years.
With less obstacles to enter the market and an ecosystem in the works, this should be a welcome move for aspiring entrepreneurs in India.
“There can be a crisis brought on by Chinese currency devaluation in one part of the world and by falling oil prices in another”, he said here at the “Start-Up India” event to be launched by Prime Minister Narendra Modi later in the day.
Need to Create Appropriate Ambience to Promote Entrepreneurship for Achieving Intended Benefits, Says President of India.
Elaborating on the point Jaitley said though India broke away from the shackles of Licence Raj – an era when the government wielded tight control over the economy in 1991 with the economic liberalisation, the government continued to exercise control over many key areas. India, which has the third-largest number of start-ups globally, will also support the ventures by removing the criteria of experience and turnover for bagging the Government procurement contracts. “The government’s action plan will inculcate the desire to become entrepreneurs among our youth throughout the nation”.
Department of Industrial Policy and Promotion (DIPP) Secretary Amitabh Kant said employment generation was the government’s top-most priority, adding that the start-up mission was an important step in this regard.
“We want to start a system of hand-holding for startups”.
“There is no exit plan for start-ups”, the prime minister said, adding that the central government was making faster exits for start-ups because “failures shouldn’t stop you forever. No inspection for three years”, the prime minister told the event to repeated applause from Who’s Who of India’s start-up and Silicon Valley ecosystems.
Technology, he said, is impacting the health sector, but the issue is how to make it affordable. “That’s over pacing and I think we will accelerate”, he said at the Start-up India conference here.
“Success of start-ups is not only about enterprise, it is about risk taking and adventure also…”
Deep Kalra, founder of the online travel company MakeMyTrip said in a lighter vein that earlier people called those founding a “start-up” as “messed up” thinking that they opted for it since they could not get any jobs or were thrown out of jobs. The day saw back to-back sessions featuring some of the biggest names in the startup world, notably Uber founder Travis Kalanick, SoftBank’s Masayoshi Son and Nikesh Arora and founders of Indian unicorns such as Flipkart, Snapdeal, Ola, Paytm and ShopClues.
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Finance Minister Arun Jaitley said new tax norms for the start ups would be devised while hinting at sops in the Budget next month.
