Prime Minister Narendra Modi in a gala event that witnessed presence of the key figures of the start-up world on Saturday, announced a Rs 10,000 crore fund ($1.48 billion) for the support of the country’s start-ups besides offering tax and compliance breaks to the industry that has already attracted billions of dollars in overseas funding.
Prime Minister Narendra Modi – AFP
Launching a string of initiatives, Modi also said start-ups in India would be free from compliance-related inspections for three years, with benefit from cheaper and faster patent applications, as well as a three year income tax exemption.
For the bio-tech sector, Modi announced 5 new bio-clusters, 50 incubators and 150 technology transfer offices.
Praising some of the fast-gaining popularity in the start-up world, Modi said, “Seeing is believing. Entrepreneurs should tell government, what not to do. When I was listening to Ritesh, OYO Rooms founder, I wondered why a ‘chai wala’ did not think of starting hotel chain”.
He also said there will be minimal government interference for the start-ups. “We are here today to find out from you what the government should not do,” said Modi. Among other decisions, he said a fast track mechanism for filing patents for startups, 80 percent rebate for filing patents by startups and relaxed norms for procurement of goods by the government.
Earlier in the day, Finance Minister Arun Jaitley announced some measures aimed at giving a bog boost to the entrepreneurial spirit in the country.
“Startup India is the ultimate break that you have from the conventional license raj of India,” the minister said at the launch of the event.
He also announced that the government will in the next Budget scrap the tax on seed funding by angel investors, which has been identified as a major impediment for entrepreneurs to get domestic funds.
On Friday, commerce and industry Minister Nirmala Sitharaman had said in Twitter chat that transparent tax regime, easier registration norms and simple exit policy will be provided to give a boost to start-ups.