It has been just a few months, five, to be precise when Prime Minister Narendra Modi launched the ‘Startup India’ initiative. While the move was applauded by all stakeholders with a number of regulations removed and new rules being incorporated to increase the ease of doing business. In a recent review meeting, it was found out that the number of startups that took part in the program to get hold of all the incentives was few and there only one who could eventually make the cut.
The revamp in the Startup India scheme is aimed at improving the participation of startups.
Speaking of the numbers, an official of the Department of Industrial Policy and Promotion (DIPP) shared that only 200 startups applied for the recognition process. Out of these 200, 30 were shortlisted for consideration, of which only one was able to make the cut. These stats in itself are very depressing considering the passion with which the PM launched the ‘Startup India’ campaign. The reason for only one of the companies to be recognized was the failure of the other companies to provide the required documents.
To boost the number of startups that apply for the program as well as get capable of being recognized, DIPP is looking to bring about some changes at the policy level while also bringing in a module to educate startups on how to go about the entire process. Other changes being brought about include:
- Startups don’t need a certificate of recognition from the government to access legal help for filing patents
- Capping on the amount of fees that can be charged by the incubators to certify a startup as an innovative business.
- Increasing of tax holiday from 3 to 5 years is also being considered.
The government is hopeful that the upcoming events related to entrepreneurship and startups, especially the national startup festival in Hyderabad will give the much-needed thrust to the Startup India initiative.
It will be interesting to see where the Startup India initiative goes from here. While these policies might give the thrust that the government is looking for, the way startups act and behave is a different game altogether.